EDD phone interview for loan-out company contractors - what questions do they ask?

I went through this last year as a loan-out for film production work. The phone interview was mostly about verifying that you're truly unemployed and not just between gigs. They asked me for detailed documentation about my loan-out company structure, my tax status (S-Corp or LLC?), and proof that I was paying unemployment insurance taxes. Make sure you have your EIN, Articles of Organization/Incorporation, most recent tax returns, and proof of UI contributions ready before the call. They'll also ask about your work search efforts since you became unemployed.

had mine last month!! they basicly want to kno if ur ACTUALLY unemployed or just trying to scam free $$ lol. my interviewer was super nice tho. had me on the phone for like 15 min only

They're going to ask how you paid yourself (W2 or 1099), when your last project ended, why it ended, and if you have any upcoming work. Be VERY careful about how you answer the upcoming work question. If you say you have anything lined up, even tentatively, they might disqualify you. I'm a storyboard artist with a loan-out and learned this the hard way.

I'm actually an EDD claims specialist (former, not current) and I can tell you loan-out companies can be tricky. Make sure you have DE 9 and DE 9C forms showing you paid yourself W2 wages. If you only took owner draws or 1099 income, you may be disqualified. The interviewer will verify you've been paying into SDI and UI through your payroll. They'll also check if your business is still operating - if your loan-out is still actively seeking clients, you might be considered self-employed rather than unemployed, which complicates things.

Have you tried calling EDD to ask these questions directly? I know it's nearly impossible to get through their phone lines these days, but when I was going through something similar with my S-Corp, I really needed to speak to someone who could look at my specific situation. I finally got through using Claimyr (claimyr.com) - they have this service that basically calls EDD for you and connects you when they get through. Saved me hours of redial hell. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Worth it to get specific answers about your loan-out situation before your interview so you're prepared.

Be careful!! My brother has a loan-out for his camera work and they denied his claim saying he wasn't "unemployed enough" whatever that means. Apparently since he was still the owner of his company they said he was still employed??? Even though he had ZERO income. The whole system is designed to deny people I swear.

I just went through this process last month with my loan-out (music composition). Here's my advice: be super straightforward about your employment situation. Emphasize that your loan-out was just a business structure, not an ongoing business with multiple clients. When they ask about your work search requirements, highlight that you're looking for W2 work with employers, not more contract work through your loan-out. I brought tax returns showing I paid into UI, plus documentation of my last project's end date. They also wanted to see that I wasn't taking on new projects through my loan-out while claiming benefits. My interview lasted about 35 minutes, and my claim was approved three days later. Good luck!

dont u hate how they always call at EXACTLY the time they say but if u miss it by even 1 min ur screwed and gotta reschedule the whole thing??

One last important tip: if your loan-out is an S-Corp, the interviewer will likely ask about your reasonable compensation determination. Make sure you can explain how you determined your salary was reasonable for your industry and role. This is critical because if they decide your salary was artificially low to avoid payroll taxes, it could create issues. Have industry salary data ready if possible. Also, be prepared to discuss how much of your income was W2 salary versus distribution income, as only the W2 portion contributes to your UI benefit calculation.

Thank you all so much for the helpful advice! I'm feeling much more prepared now. I've gathered all my company docs, DE 9 and DE 9C forms, and emails about my client's bankruptcy. I'll make sure to be very clear that I'm not actively seeking clients through my loan-out right now and that I'm looking for W2 employment. I'll also have my salary determination documentation ready just in case. I'm going to try using that Claimyr service to talk to someone at EDD before my interview so I can get any specific questions answered. Will update after my interview next week!