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Cass Green

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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I went through something very similar last year! I had a small photography side business while working full-time at a retail store. When I got laid off, my claim was flagged for the same self-employment investigation. The key things that helped me get approved were: 1. I documented exactly when I stopped taking photography clients (had text messages and emails declining new bookings) 2. I showed that my W-2 job was clearly my primary income source 3. I was completely honest about the amounts I earned from the side work when they asked It took about 4 weeks total, but my claim was eventually approved and I got all the back pay. The waiting is super stressful, but based on what you've described (stopping the freelance work before your layoff, minimal income compared to your main job), you should be in good shape. Just keep filing those weekly claims and have your documentation ready when they ask for it!

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This is really helpful to hear from someone who went through the exact same thing! Did they send you a specific form to fill out about the photography business, or did you just have to provide the documentation showing when you stopped? I'm trying to figure out if I should be proactive about gathering my paperwork or just wait for them to tell me what they need.

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They actually sent me a Self-Employment Questionnaire through the dashboard messaging system about 2 weeks into the investigation. It asked for dates when the business started/stopped, total income amounts by quarter, and then I had to upload supporting documents. I'd definitely recommend gathering your paperwork now - emails showing you stopped taking clients, any final invoices, bank statements showing no recent deposits from freelance work. Having everything ready made the process much smoother when they finally asked for it. The questionnaire gave me about 10 days to respond, so you don't want to be scrambling to find documents at the last minute!

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I'm dealing with almost the exact same situation right now! I had a small tutoring side business while working my regular job, and when I got laid off last month, my claim immediately got flagged with "self-employment investigation." It's been 3 weeks and I'm getting so anxious about it. Reading through all these responses is actually making me feel a lot better though. I stopped tutoring back in January when my regular work got busier, so I have texts with parents saying I couldn't continue lessons. Sounds like I need to gather all that documentation and just wait for them to send me whatever forms they need. Has anyone here had experience with how long the back payments take once they finally approve your claim? I'm worried about my bills piling up while this drags on.

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Hey Dylan! I can totally relate to the anxiety - the waiting is honestly the worst part. From what I've seen in other threads and talking to people who've been through this, once your claim gets approved after a self-employment investigation, the back payments usually come within 7-10 business days. Some people have reported getting them as fast as 3-4 days, but it seems to depend on how backlogged their system is. The good news is that you'll get paid for all the weeks you've been filing, so even though it's stressful now, you won't lose any benefits as long as you keep doing your weekly certifications. Your situation sounds really similar to the original poster's - you stopped before getting laid off and have documentation, so that's a good sign!

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I'm going through something very similar right now! I had a small Etsy shop selling handmade jewelry while working full-time as a teacher, and when I got furloughed due to budget cuts last month, my UC claim got flagged with the exact same "self-employment investigation" status. What's been helpful for me is keeping detailed records of everything. I made sure to save all the emails where I told customers I was closing the shop, screenshots of my Etsy listings being deactivated, and my bank statements showing no income from sales since I stopped in January. The waiting is absolutely nerve-wracking, but from everything I'm reading here, it sounds like as long as you can prove the freelance work ended before your layoff and wasn't your primary income source, you should be okay. Your $230/month compared to a full-time manufacturing job is clearly secondary income. One thing I learned from calling (took me literally 47 attempts to get through) is that they're required to investigate any mention of self-employment, even if it's minimal. It's not that they're trying to deny your claim - they just have to verify that you're not currently earning income that would affect your benefits. Keep filing those weekly claims and hang in there!

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Thank you so much for sharing your experience! It's really reassuring to hear from someone going through almost the exact same thing. 47 attempts to get through - wow! That gives me some perspective on how hard it is to actually reach someone. Your point about them being required to investigate any mention of self-employment makes a lot of sense. I was starting to think they were just looking for reasons to deny claims, but if it's actually a standard verification process, that makes me feel better about my situation. I'm definitely going to follow your advice about keeping detailed records. I have emails with clients declining new projects, but I should probably also get bank statements showing no freelance deposits since February. Did the representative you spoke to give you any timeline for how long these investigations typically take? Thanks again for the encouragement - it really helps to know I'm not alone in dealing with this!

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I'm in almost the exact same boat! I was working full-time as a nurse while doing some freelance medical writing on the side (maybe $150-200/month). I stopped the writing gigs in January and got laid off from the hospital in February. My claim has been stuck on "self-employment investigation" for over 3 weeks now. Reading all these responses is giving me so much hope though! I was honestly starting to panic thinking I'd be automatically denied. I have all my documentation ready - emails declining new writing projects, invoices showing my last payment was in January, bank statements, etc. One thing I'm wondering about is whether I should try to upload these documents somewhere proactively or just wait for them to request them? My dashboard doesn't seem to have anywhere to submit additional info, but I'm worried they're waiting for me to provide something I don't know about. The financial stress of waiting is really getting to me, but it sounds like most people here eventually got approved once they could prove the self-employment had ended. Fingers crossed we all get through this soon!

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Hey Chloe! Your situation sounds so similar to mine and several others here. Based on what everyone's shared, it seems like the best approach is to wait for them to request the documentation rather than trying to upload it proactively, since most dashboards don't have a way to submit unsolicited documents. But definitely keep everything organized and ready to go! The financial stress is so real - I keep checking my dashboard multiple times a day hoping for an update. From what I'm seeing here though, it sounds like most people with situations like ours (stopped self-employment before layoff, minimal income compared to main job) do get approved eventually. The investigation seems to be more about verifying we're not still earning that income rather than looking for reasons to deny us. Hang in there! At least we know we're not alone in dealing with this waiting game. Hopefully we'll all have good news soon.

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This thread has been so helpful to read! I'm also dealing with a self-employment investigation right now. I was working full-time as an administrative assistant while doing some freelance bookkeeping on weekends (maybe $300/month). I stopped taking bookkeeping clients in December and got laid off from my main job in early March. My claim has been pending with "self-employment investigation" status for about 2.5 weeks now. Like everyone else here, I was really panicking at first thinking I'd be automatically denied, but reading all your experiences is giving me hope that this is just a standard verification process. I have good documentation - final invoices from December, emails to clients saying I was stopping the service, bank records showing no deposits since then. Based on what everyone's shared, it sounds like I should just wait for them to send me whatever questionnaire or forms they need rather than trying to submit stuff proactively. The waiting is definitely stressful financially, but it's so reassuring to see that most people with similar situations (stopped self-employment before layoff, minimal side income compared to W-2 job) eventually got approved. Thank you all for sharing your experiences - it really helps to know we're not going through this alone!

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Hey Abby! Your situation sounds almost identical to mine and so many others in this thread. It's amazing how common this issue is - I had no idea when I first posted! The fact that you stopped your bookkeeping work in December and have all that documentation sounds really promising. From everything I've learned here, the timing is crucial, and you're in good shape since you ended the self-employment well before your layoff. I'm still waiting too (going on 2+ weeks now), but reading everyone's experiences has really helped calm my nerves. It seems like this investigation is just standard procedure rather than them looking for reasons to deny us. The consistency in everyone's stories - minimal side income, stopped before layoff, eventually getting approved - is really encouraging. Thanks for sharing your experience too! It helps to know there are others going through the exact same thing right now. Hopefully we'll all start seeing some movement on our claims soon. Keep filing those weekly certifications and hang in there!

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I'm currently going through this exact same situation! I was working full-time at a marketing agency while doing some freelance social media management on the side (brought in about $180/month). I completely stopped the freelance work in mid-January when my agency workload increased, and then got unexpectedly laid off in early March due to company downsizing. My UC claim has been stuck on "self-employment investigation" for almost 3 weeks now, and I was absolutely terrified I'd be denied until I found this thread. Reading everyone's experiences has been such a relief - it sounds like this is just standard procedure for anyone who mentions any self-employment, even if it was minimal and already ended. I have all my documentation ready (emails declining new clients, final invoices from January, bank statements showing no freelance income since then), so I'm just waiting for them to send whatever forms they need me to fill out. The financial stress is real while waiting, but seeing so many similar success stories here gives me hope that we'll all get through this eventually. Thank you to everyone who shared their experiences - it really helps to know we're not alone in this process! I'll definitely update once I hear something back from PA UC.

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Mateo, your situation sounds almost identical to what so many of us are dealing with! I'm also waiting on a self-employment investigation (going on week 3 now) and this thread has been a lifesaver for my anxiety. The fact that you stopped your freelance work well before your layoff and have all that documentation sounds really promising based on everyone else's experiences here. It's crazy how common this issue is - I had no idea when I first posted that so many people deal with these investigations. But seeing the pattern of people with similar situations (minimal side income, stopped before layoff, good documentation) eventually getting approved is really encouraging. The waiting is definitely the hardest part, especially with bills piling up, but it sounds like we just need to be patient with their verification process. Keep filing those weekly certifications and hopefully we'll all start seeing some movement soon. Thanks for sharing your experience too - it helps to know there are others going through this right now!

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I'm also dealing with this exact same situation right now! I had a small side business doing freelance web design while working full-time as a software developer. Made maybe $400-500/month from it, but completely shut it down in January when my main job got more demanding. Got laid off in February and my claim has been stuck on "self-employment investigation" for almost 4 weeks now. Reading through all these experiences has been incredibly helpful and reassuring. I was convinced I was going to be automatically denied, but it sounds like this is just their standard verification process. I have emails where I told clients I was closing the business, my final invoices from January, and bank statements showing no web design income since then. The financial stress while waiting is intense, but seeing so many similar stories with positive outcomes gives me hope. It's clear that as long as you truly stopped the self-employment before your layoff and can document it, you should be okay. The key seems to be patience and having good records ready when they ask for them. Thanks to everyone for sharing your experiences - it really helps to know this is normal and that we're not alone in dealing with these investigations!

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Your situation sounds so similar to mine and many others here! I'm also about 4 weeks into a self-employment investigation after having a small freelance business that I shut down before getting laid off. The consistency in all these stories is really reassuring - it seems like PA UC just has to verify that we're not currently earning self-employment income, rather than trying to find reasons to deny us. Your documentation sounds solid - having those client emails about closing the business and bank statements showing no recent income should be exactly what they're looking for. I'm in the same boat waiting for them to send whatever questionnaire or forms they need, but based on everyone's experiences here, it sounds like most people with our type of situation (legitimate end to self-employment before layoff, minimal income compared to W-2 job) do get approved eventually. The waiting is definitely the hardest part financially, but keep filing those weekly certifications! Hopefully we'll all start seeing some movement on our claims soon. Thanks for adding your experience to the thread - it helps to see we're all dealing with this together.

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I'm going through the exact same thing right now! I was working full-time as an accountant while doing some freelance tax prep on the side (maybe $250/month during tax season). I stopped taking new tax clients in early February and got laid off from my accounting job last week of March. My claim has been sitting at "self-employment investigation" for about 10 days now. This entire thread has been such a huge relief to read! I was honestly panicking thinking I'd be automatically disqualified, but seeing so many people with nearly identical situations eventually get approved is really encouraging. It's clear this is just their standard verification process rather than them looking for ways to deny claims. I have all my documentation ready - emails to clients saying I wouldn't be doing taxes this year, my last invoices from early February, bank statements showing no tax prep income since then. Based on everyone's experiences here, sounds like I just need to wait for them to send whatever forms they need and be patient with the process. The financial stress while waiting is real, but at least now I know this is completely normal and that most people with our type of situation (stopped self-employment before layoff, minimal side income) do get approved. Thanks to everyone for sharing - it really helps to know we're all dealing with this together!

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