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PA UC and self-employment income - will this disqualify my entire claim?

I'm completely confused about how PA UC treats self-employment when filing for unemployment. I was working full-time (42 hrs/week) at a manufacturing company for 3 years, but I also did some freelance graphic design on the side that brought in about $230/month. I stopped taking freelance jobs in early February, and then got laid off from my main job in late March 2025. When I filed for unemployment, my claim got flagged with an 'open issue' related to self-employment. The dashboard just says 'pending - self-employment investigation' but doesn't explain anything else. Everyone I talk to says different things - some say I'm automatically disqualified because of the side gig, others say it doesn't matter since I stopped before being laid off. Can anyone explain how PA UC actually handles this situation? Will my entire claim be rejected because I did some minimal freelance work earlier this year?

This is a common issue with PA UC claims. Self-employment doesn't automatically disqualify you, but it does trigger additional review. Here's what you need to know: 1. Since your self-employment ended BEFORE you lost your main job, you should still qualify for benefits based on your W-2 employment. 2. You need to be able to document when your self-employment ended (final invoices, client communications, etc). 3. You'll need to complete the Self-Employment Questionnaire they'll likely send you. 4. Be prepared to explain that the self-employment was minimal compared to your main job ($230/month vs full-time wages). The key thing is showing you're not still getting self-employment income while claiming benefits. You're not automatically disqualified at all.

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Cass Green

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Thank you so much for the clear explanation! I haven't gotten any questionnaire yet - should I call them about this? It's been sitting as an open issue for almost 2 weeks now.

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Madison Tipne

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ur gonna get denied 100%. they ALWAYS deny if u had any self employmnt. happened to my brother last yr and he lost everything. PA unemployment is garbage!!

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Finley Garrett

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This isn't accurate. Self-employment can complicate a claim but doesn't automatically disqualify someone. The timing matters (whether it ended before job loss), and whether it was substantial enough to be considered their primary occupation. Lots of people with minor side gigs qualify for regular UC based on their W-2 employment.

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Madison Tipne

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whatever u say but ive seen it happen 2 many ppl. they just use it as excuse to deny u

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I actually had almost the exact same situation last year! I had a small Etsy shop while working full-time as an office manager. When I got laid off, my claim was held up for like 3 weeks because of the self-employment issue. When I finally got through to someone, they just needed me to verify that I wasn't still running the shop. I had to fill out a form detailing when I stopped, how much I made, and provide proof that the shop was closed (I sent screenshots of my shop settings showing it was in vacation mode). Once I sent all that in, it took about 10 more days but then my claim was approved! So don't panic - it's definitely possible to get approved with previous self-employment.

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Cass Green

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This is really reassuring to hear! Did they contact you about the form or did you have to keep calling to figure out what was needed? I'm worried they need something from me but haven't told me what it is.

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Holly Lascelles

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They sent me a message through the dashboard, but I didn't notice it right away. If you're worried, you should definitely try to reach someone. Getting through on the phone is nearly impossible though - I spent 3 days hitting redial constantly.

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Malia Ponder

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Have you tried using Claimyr to reach PA UC? It's the only way I could actually get through to a human at unemployment. I was stuck with an 'open issue' for weeks, but after using Claimyr (claimyr.com), I got through to an agent who fixed my issue in minutes. They have a video demo that shows how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. It was honestly a lifesaver for my self-employment issue since they needed additional documentation but never told me what they needed.

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Cass Green

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I've never heard of this before. Does it actually work? I've been trying to call for days and just get busy signals or disconnected.

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Malia Ponder

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Yes, it definitely worked for me! Instead of waiting on hold forever or getting busy signals, they call PA UC for you and connect you once they reach a representative. Saved me literally days of frustration.

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Kyle Wallace

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I work as an employment counselor, and I see this issue with clients regularly. PA unemployment reviews self-employment income because they need to determine if you're truly unemployed or just had reduced income from self-employment. Here's what matters: 1. You need to be FULLY unemployed from your regular work 2. Your side gig must have fully ENDED before you filed (not just paused) 3. The self-employment can't have been your primary source of income If you meet these criteria, you should be eligible. However, the verification process does take time, often 3-4 weeks. Make sure you continue filing your weekly claims during this period!

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Cass Green

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Thank you for this info! Yes, my freelance work completely ended in February and I have emails showing I told clients I was no longer accepting projects. My W-2 job was definitely my primary income (about 90% of my total income). I've been filing my weekly claims but they all just say pending. Should I be answering "no" to the question about whether I'm self-employed since I'm not doing it anymore?

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Kyle Wallace

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Yes, you should answer "no" to the self-employment question on your weekly claims if you are no longer doing any freelance work. Just be consistent with your answers. Your situation sounds like you should qualify based on your W-2 employment.

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Ryder Ross

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wait so did u actually offically close ur business? like file paperwork with the state or just stop working? becuz thats what got me. i had a side hustle driving for uber but stopped when i lost my real job but unemployment said since i didnt formally deactivate my uber account i was still "self employed" even tho i wasnt driving. had to appeal and it was a whole mess

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Cass Green

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Oh no, I didn't file any formal paperwork because it was just freelance work under my name, not an official business. I just stopped accepting projects. Now I'm worried they'll say the same thing to me that I'm still technically self-employed even though I'm not doing any work!

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Ryder Ross

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yeah thats exactly what happened 2 me! make sure u have something in writing showing u closed it down. emails to clients, website shutdown, something like that. they r super picky about it

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Gianni Serpent

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First of all, calm down! Lol. I was literally in this EXACT situation and got approved, but it did take almost 5 weeks for them to resolve it. If your self-employment was minor compared to your regular job (which it sounds like it was), and you weren't doing it when you applied for benefits, you should be fine. Just keep filing your weekly claims while you wait. The most important thing is to answer all their questions 100% truthfully. If they ask about self-employment income for previous quarters, report it accurately. If they ask if you're currently self-employed, say no (assuming you've actually stopped). Don't overthink it.

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Cass Green

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Thanks, this does make me feel better. Did they eventually just approve your claim without you having to do anything else? Or did you have to talk to someone first?

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Gianni Serpent

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In my case, they sent me a questionnaire through the dashboard messaging system that I had to fill out and upload. About 10 days after that, my claim was approved and I got all my back payments. Never actually had to talk to anyone live.

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Finley Garrett

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One additional point I wanted to mention - if your claim is denied based on the self-employment issue (which seems unlikely given what you've described), you have the right to appeal. The appeal process for PA UC is actually fairly straightforward, and many initial denials get overturned. You would have 15 days from the determination date to file your appeal. But from what you've described, it sounds like you just need to wait out their review process or try to contact them to provide additional information about when your self-employment ended. Do you have any documents showing you stopped the freelance work in February?

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Cass Green

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Yes, I have emails with clients where I told them I couldn't take on new projects after February 15th. I also haven't invoiced anyone or received any payments since then. Should I upload these somewhere or wait for them to ask?

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Finley Garrett

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If there's no place in your dashboard to upload additional documentation, you'll likely need to wait until they contact you. However, having these documents ready is perfect - that's exactly what they'll want to see. If you can get through to a representative (which admittedly is difficult), you could ask if there's a way to submit this documentation proactively.

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Holly Lascelles

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I just remembered something else important! When I was dealing with my self-employment issue, I made sure to answer the weekly certification questions properly. There's that question about whether you're self-employed or own a business - make sure you answer NO to this since you're no longer doing the freelance work. I accidentally answered YES the first week because I was thinking about my previous situation, and it created even more confusion. Be super consistent with your answers!

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Cass Green

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Thanks for the reminder! I've been answering NO to that question since I haven't been doing any freelance work since February. Hopefully that helps keep things clear.

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