Can you work a 1099 job and still collect NYS Department of Labor unemployment benefits?

Yes, you can work as a 1099 contractor while collecting unemployment, but you MUST report all earnings on your weekly claim certification. NYS Department of Labor will reduce your benefits based on how much you earn. Generally, you can earn up to 25% of your weekly benefit rate without any reduction, but anything over that gets deducted dollar-for-dollar from your benefits. So if your weekly benefit is $400, you could earn up to $100 without reduction.

be really careful with 1099 work though... i did some freelance graphic design last year while on unemployment and forgot to report it for like 3 weeks. NYS Department of Labor found out somehow and hit me with an overpayment notice for $1,200. they're pretty strict about tracking income now

The key thing with 1099 work is that you report GROSS earnings for the week you perform the work, not when you get paid. So if you work Monday-Friday and earn $200 that week, you report $200 on that week's certification even if the client doesn't pay you until the following month. NYS Department of Labor is very clear about this in their guidelines. Also make sure you're still doing your required job search activities - contractor work doesn't count toward your job search requirement.

I had trouble reaching NYS Department of Labor to clarify this exact situation last month. Kept getting busy signals and their online chat was always full. Finally used Claimyr (claimyr.com) to get through to an actual agent who explained everything clearly. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really saved me from making a mistake with my claim.

just make sure u understand the difference between being an employee and contractor. if they're telling u when to work and how to do the job u might actually be misclassified as 1099 when u should be W2. that changes everything with unemployment

One more thing to keep in mind - if your 1099 work starts generating consistent income that approaches or exceeds your weekly benefit amount, NYS Department of Labor might consider you "returned to work" and could close your claim entirely. This typically happens when you're earning more than your weekly benefit rate for several consecutive weeks. So while the part-time freelance work you described should be fine, just be aware that if it grows into something bigger, you might need to make a decision between the contract work and continuing unemployment benefits. Also, keep detailed records of all your earnings and hours worked - if there's ever a question about your claim, having good documentation will help you avoid any overpayment issues.

I've been in a similar situation and wanted to share what worked for me. When I started doing 1099 work while on unemployment, I created a simple spreadsheet to track my weekly earnings and hours worked. This made it super easy to report accurately each week. Also, don't forget that as a 1099 contractor, you'll need to set aside money for taxes since nothing gets withheld - I learned this the hard way! The general rule I follow is to save about 25-30% of my 1099 earnings for taxes. The extra income really does help while you're job searching, just stay on top of the reporting requirements and you should be fine.

Great question! Yes, you can absolutely work a 1099 job while collecting unemployment, but the key is being completely transparent about your earnings. I did this for about 3 months last year while job hunting. Here's what I learned: Report your GROSS weekly earnings (before any deductions) for the week you actually performed the work, not when you got paid. NYS Department of Labor has a partial benefit calculator on their website that shows exactly how much your benefits will be reduced based on your earnings. Also, keep meticulous records - I used a simple Google Sheet with columns for date, hours worked, earnings, and invoice numbers. This saved me when they did a random audit of my claim 6 months later. One last tip: the 1099 work won't count toward your job search requirements, so make sure you're still applying to permanent positions and documenting those activities. The extra income really helped me stay afloat while finding my next full-time role!

I'm in almost the exact same situation right now! Just got offered some freelance writing work that would be 1099 and I've been so nervous about how it affects my unemployment. Reading through all these responses is super helpful. I'm definitely going to check out that partial benefit calculator on the NYS Department of Labor website that @Mateo Hernandez mentioned. The spreadsheet tracking idea seems like a must-do too. One thing I'm still unclear on - when you report the earnings on your weekly certification, is there a specific section for 1099 work or do you just put it in the general earnings section? I want to make sure I'm filling out the form correctly from the start. Also, has anyone had experience with seasonal 1099 work? The opportunity I'm looking at would be more project-based and might not be consistent week to week.

I went through this exact situation about 8 months ago and wanted to share some additional insights that might help. Beyond just reporting your earnings correctly, there are a few other things to keep in mind: First, make sure you understand how NYS Department of Labor defines "available for work" - even with 1099 work, you still need to be genuinely available for full-time employment opportunities. Second, I found it helpful to set up a separate bank account just for my 1099 earnings to make tracking easier for both unemployment reporting and tax purposes. Third, don't forget that you'll likely need to file quarterly estimated tax payments if your 1099 income is substantial - the IRS usually expects this if you'll owe more than $1,000 in taxes. The partial work actually ended up being a great networking opportunity that led to my current full-time position, so don't just see it as temporary income - treat those contractor relationships professionally since they might turn into permanent opportunities. Good luck with the decision!

I've been doing 1099 work while on unemployment for the past 4 months and it's definitely doable with proper planning! A few additional tips that haven't been mentioned yet: Always screenshot your weekly certification after submitting it - this creates a record of exactly what you reported each week. Also, if you're working with multiple 1099 clients, create a simple naming system for your invoices (like "Client-Date-Amount") to make tracking easier. One thing that caught me off guard was that some weeks I'd work but not get paid until the following week or month - remember you report earnings for when you WORKED, not when you got paid. I also recommend setting up email alerts from your bank account so you get notifications when 1099 payments come in - this helps with record keeping. The extra income really does make a difference while job hunting, and like others mentioned, it often leads to networking opportunities. Just stay organized, be honest with your reporting, and you'll be fine!

I've been working 1099 gigs while on unemployment for about 6 months now and want to emphasize something really important - always err on the side of over-reporting rather than under-reporting. I made the mistake early on of rounding down my earnings thinking it wouldn't matter much, but during a phone interview with NYS Department of Labor they asked very specific questions about my work hours and payments. Luckily I had good records and could explain the discrepancies, but it was stressful. Now I report every single dollar, even if it's $15 for a small task that took 30 minutes. Also, keep copies of all your 1099 forms when you receive them in January - NYS Department of Labor cross-references these with your reported earnings. The system is definitely set up to catch inconsistencies, so accuracy is everything. On the positive side, having that steady part-time income while job searching really reduced my financial stress and actually made me more confident in interviews because I wasn't desperate. Just be meticulous with your record-keeping and you'll be fine!

I haven't seen anybody mention how to certify the amount since the website only ask questions to answer with either yes or no and there is no place to put any gross income how do you guy's do it