Can I take a contract job while on NYS Department of Labor unemployment benefits?
I've been collecting unemployment for about 6 weeks now and just got offered a short-term contract position that would last maybe 2-3 months. It's freelance web development work and they want to pay me as a 1099 contractor. I'm worried about messing up my benefits - can I take this job and still collect unemployment when the contract ends? Do I need to report the contract income on my weekly claims? I don't want to get hit with an overpayment later.
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Amina Diop
Yes, you can take contract work while on unemployment, but you MUST report all income on your weekly claims. NYS Department of Labor will reduce your weekly benefit amount based on what you earn. For every day you work, you can earn up to 25% of your weekly benefit rate without any reduction. Anything over that gets deducted dollar-for-dollar from your benefits.
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Paolo Romano
•Thanks! So if my weekly benefit is $400, I can earn up to $100 without any reduction? And do I report the income the week I earn it or when I get paid?
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Oliver Schmidt
definitely report it when you earn it not when you get paid!! i made that mistake once and had to deal with an overpayment mess for months
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Natasha Volkov
•This is correct. NYS Department of Labor wants to know about work performed during the claim week, regardless of when payment is received. Always report earnings for the week the work was actually done.
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Javier Torres
I had a similar situation last year with contract work. The good news is that when your contract ends, you can usually just continue filing your regular weekly claims without having to reapply for benefits. Just make sure you're still able and available for other work while doing the contract - that's a requirement NYS Department of Labor checks for.
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Paolo Romano
•That's reassuring! I was worried I'd have to start the whole application process over again.
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Emma Wilson
One thing to watch out for - if you're doing 1099 work, you might need to keep detailed records of your hours and earnings. I've heard of people having trouble with adjudication when NYS Department of Labor couldn't verify their reported income from contract work. Save everything!
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Natasha Volkov
If you're having trouble getting through to NYS Department of Labor to ask about this directly, I recently used a service called Claimyr (claimyr.com) that helped me reach an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped when I needed to clarify some complex earnings reporting questions.
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Oliver Schmidt
•how much does that cost? seems like it should be free to talk to unemployment
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Natasha Volkov
•I agree it should be free, but when you can't get through for weeks and need answers about your benefits, sometimes you need other options. The service was worth it for my peace of mind.
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QuantumLeap
Just want to add - make sure the contract work doesn't interfere with your job search requirements. You still need to be doing your required work searches even while working the contract, unless NYS Department of Labor specifically waives that requirement for your situation.
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Noah Torres
Another important consideration - since this is web development contract work, make sure you understand how NYS Department of Labor handles self-employment income. As a 1099 contractor, you're technically self-employed for those weeks you're working. If you're working full-time hours on the contract (even if it's temporary), you might not be eligible for benefits during those weeks regardless of the income amount. The key is whether you're "totally unemployed" vs "partially unemployed" during each claim week. I'd recommend calling to clarify your specific situation before starting the contract.
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