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Melina Haruko

PA UC benefits while becoming a caregiver paid as 1099 - reporting $300/week income

Just got offered a caregiver position for my boyfriend's mother that pays $300/week as a 1099 contractor. I'm currently on unemployment and really confused about how to report this. Do I have to give up my UC benefits completely since this pay might be higher than my weekly benefit? Also, I've done 2 phone interviews through PA CareerLink, submitted 1 application, and completed other job searches - do I still need to do MORE applications through CareerLink specifically? The whole system is so confusing and I don't want to mess up my claim or get hit with an overpayment later. Has anyone dealt with becoming a 1099 worker while on PA unemployment?

You'll need to report all your earnings when you file your weekly claim. PA unemployment uses your gross earnings (before taxes) for the week you performed the work, not when you get paid. Since you're a 1099, you need to report the full amount without deductions. As for your weekly benefit amount - if you earn more than your partial benefit credit (30% of your weekly benefit rate), they'll reduce your UC payment accordingly. If you earn more than your weekly benefit rate plus the partial benefit credit, you won't receive UC for that week. Regarding job search - you need to complete 2 work search activities each week regardless of interviews you've already had. One application through CareerLink can count as one activity, but you need a variety of activities (applications, interviews, job fairs, etc).

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Melina Haruko

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Thank you for explaining! So if my weekly benefit is $250, and I make $300 as a caregiver, I probably won't get any UC money that week? Do I still need to file the weekly claim even if I know I won't get paid?

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Reina Salazar

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i went thru this last yr when i started doordashing. u HAVE to report every penny u make as a 1099 worker on ur weekly claims!!! they count it for the week u WORKED not when u get paid so dont mess that up. the system is so messed up i got hit with a $2200 overpayment bc i thought i could just report when the money hit my bank😫

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THIS! And remember that as a 1099 contractor, you're responsible for paying your own taxes too - nothing is withheld. Set aside about 25-30% of what you earn or you'll be hurting at tax time. I learned this the hard way!

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Demi Lagos

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To directly answer your question - yes, you should continue filing your weekly claims even when you're earning money as a caregiver. Here's why: 1) Your caregiver income might fluctuate week to week 2) If you stop filing completely, your claim will become inactive after two weeks 3) By reporting your earnings properly, the system will automatically calculate if you're eligible for partial benefits For the job search requirements, the 2 phone interviews only count for the weeks they occurred. For future weeks, you still need to complete 2 new work search activities each week. Using CareerLink for applications is recommended but not required - you can apply through other websites too.

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Mason Lopez

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plus theres that weird thing where some weeks have different number of days in them depending on the calendar. so even if u make the same amount each day the weekly total might change

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Vera Visnjic

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I was in almost the exact same situation last year - taking care of my sister's kid as a 1099 worker while on UC. The STUPID system makes you report your work each week even if you make too much for benefits. If I were you, I'd still file every week and report the $300 because: 1) If your hours/pay ever drop one week, you might qualify for partial benefits 2) If you get let go from the caregiver job, your claim is still active 3) The PA UC system is NOTORIOUS for finding unreported income and hitting people with fraud penalties!! I've tried calling them 23 TIMES to get better answers about this and gave up!!!!

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Jake Sinclair

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Have you tried Claimyr to get through to PA UC? I was calling for weeks with no luck about my 1099 income reporting. Found this service at claimyr.com and they got me connected to an agent in about 20 minutes. They have a video demo that shows how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. The agent explained exactly how to report my contract income and fixed an issue with my claim that would have caused problems later.

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Melina Haruko

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Wow thank you everyone for all the helpful replies! I'm definitely going to keep filing and report the full $300 each week. I didn't realize I'd still need to do the work search activities even if I'm not getting benefits that week - thats so frustrating but I'll keep doing them. I'm worried about the tax situation too... as a 1099 I need to pay my own taxes AND social security/medicare taxes right? This caregiver job seemed like a good idea but now I'm wondering if its worth it with all these complications.

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Yes, as a 1099 contractor, you're responsible for both the employee and employer portions of Social Security and Medicare taxes (15.3% total). Plus federal income tax and state/local taxes. It's a good idea to set aside 25-30% of your earnings for taxes. Regarding work search - if your caregiver job is less than 32 hours per week, you actually DO still need to complete the work search requirements, even if you're not receiving benefits that week. Only full-time employment exempts you from work search.

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Mason Lopez

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cant u just not report the caregiver income?? its family basically right?? my cousin did something like that when he was working on the side

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Demi Lagos

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Absolutely NOT. That's fraud and can result in heavy penalties, repayment of all benefits plus interest, and potentially even prosecution. PA UC regularly matches income records with tax filings and employer reports. They will eventually catch unreported income, especially from 1099s that are reported to the IRS.

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Based on my experience dealing with PA UC and 1099 work, you should check if you're truly a contractor or if you should be classified as an employee. There are specific rules about this. If your boyfriend's family controls when and how you work, you might actually be misclassified. This matters because: 1. Employees get unemployment protection 2. Contractors don't 3. Misclassification is common to avoid payroll taxes I went through something similar and ended up filing an SS-8 form with the IRS to determine my status. Just something to consider.

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Melina Haruko

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That's an interesting point! I hadn't even thought about whether I'm properly classified. They do set my hours and tell me exactly what to do, so maybe I should be an employee? I'll look into that SS-8 form. Thank you!

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Diego Vargas

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Just wanted to add my experience - I was in a similar spot with PA UC and 1099 work. The key thing that saved me from headaches later was keeping detailed records of EVERYTHING. I created a simple spreadsheet tracking: - Exact dates I worked each week - Hours worked - Amount earned per week - When I reported it on my UC claim - Screenshots of my weekly claim submissions This documentation was a lifesaver when PA UC questioned some of my reports months later. They wanted proof of when I worked vs when I got paid, and having those records made the whole process smooth. Also, don't stress too much about the tax situation - yes, you'll owe more as a 1099, but $300/week is still decent income. Just open a separate savings account and automatically transfer 25-30% of each payment there. You'll thank yourself at tax time! Good luck with the caregiver position - it sounds like meaningful work even with all the bureaucratic hassles.

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