PA UC examining my freelance work - confused about employee vs contractor status affecting my benefits
I lost my main job last month and applied for unemployment. My former employer isn't contesting anything, but now I'm stuck with an 'open issue' because I mentioned my occasional freelance writing gigs during the application. PA UC called today asking confusing questions about whether I'm 'free from direction and control' in my freelance work. I write articles on assigned topics but create the content independently - no formal evaluations or supervision. The examiner said if I'm 'free from direction' I could be classified as self-employed and potentially disqualified! But I'm NOT self-employed - this is just side work that pays maybe $400-600 monthly compared to my full-time salary of $4,200. Then she mentioned if I'm considered a regular employee of the freelance company, there might be OTHER issues. She's forwarded my case to their tax department after requesting my 1099 from 2024. I'm completely lost. How should I have answered these questions? What classification (employee vs contractor) is better for my unemployment claim? Will I lose benefits entirely because of occasional freelance work? This process is making an already stressful situation so much worse.
29 comments


Dmitry Petrov
I went through something similar last year. The way PA UC handles side gigs is incredibly confusing. From my experience, if they determine you're an independent contractor for your freelance work, they'll still approve your benefits based on your W2 job, but you'll need to report your freelance earnings each week which will reduce your weekly benefit amount. If they determine you're an employee of both companies, it gets more complicated with combined wage calculations. Based on what you described (project-based work, creative freedom, no supervision), you sound like a legitimate independent contractor. Make sure they understand the SCALE difference between your main job and this side gig. The key is to emphasize that your freelance work is irregular, not guaranteed, and significantly less than your main employment.
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Sofia Gutierrez
•Thank you so much for explaining this! I wish the examiner had been this clear. So basically either classification could still result in benefits, just calculated differently? I definitely emphasized the huge pay difference and irregular nature of the freelance work. I'm just worried they'll deny me completely because I said I have creative freedom.
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StarSurfer
They make these questions intentionally confusing to trip ppl up i swear. i had a etsy shop that made like $50 a month and they acted like i was running amazon or something lol. took FOREVER to get my claim approved
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Ava Martinez
•SAME HERE but with doordash! The system isnt designed for the modern economy where everyone has multiple income streams. The rules were written when people just had ONE job their whole life 🙄
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Miguel Castro
Here's what's happening: PA UC is determining whether your freelance work makes you ineligible for benefits under their self-employment rules. The key test factors are: 1. Control and direction - who decides HOW you do the work 2. Whether the work is part of the company's regular business 3. If you're independently established in that business For UC purposes, being classified as an independent contractor is generally BETTER in your situation. If they classify you as an employee of the freelance company, they may combine wages from both employers, potentially complicating your claim or even creating an eligibility issue if you're still technically "employed" by them. Your best approach is to emphasize: - The freelance work is minimal compared to your full-time job - The work is irregular/inconsistent - You report this income on 1099s, not W2s - You don't receive employee benefits from them Be prepared that they might reduce your weekly benefit amount based on any freelance earnings you report.
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Sofia Gutierrez
•This is incredibly helpful - thank you! I definitely made clear the irregular nature and huge income difference. I just got confused when she kept pressing for yes/no answers about supervision when it's more nuanced than that. They have my 1099 now, so hopefully that helps clarify things. Do you know how long these determinations typically take?
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Zainab Abdulrahman
I'm in the EXACT same situation right now and it's infuriating!!! Lost my teaching job but I tutor a few hours a week. Been waiting 5 WEEKS already because of this stupid "investigation" into my tutoring. Like sorry for trying to make a little extra money on the side?? UC system is broken!!
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Connor Byrne
•5 weeks?? That's ridiculous! Have you tried calling them? I know it's almost impossible to get through on the phone lines...
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Zainab Abdulrahman
•I've called LITERALLY 37 times (yes I counted). Either busy signal or disconnected after waiting on hold for an hour. This system is designed to make people give up.
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Yara Elias
After weeks of dealing with busy signals and disconnections trying to reach PA UC about my side gig situation, I finally found a service called Claimyr that got me through to an actual agent in less than 2 hours. They have this system that holds your place in line and calls you back when an agent is available. Saved me days of frustration! You can see how it works at claimyr.com or check their demo at https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 The agent I spoke with clarified that my freelance photography doesn't disqualify me as long as I report earnings correctly. Might be worth trying to get specific answers about your writing gigs instead of waiting for weeks.
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Sofia Gutierrez
•That's really helpful - thanks! I'll definitely check that out. At this point I'm willing to try anything to get some clarity. Did they reduce your benefits because of your photography income?
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Yara Elias
•Yes, they reduce my weekly benefit by whatever I earn from photography that week (minus a small deduction they allow). But the important thing is I still GET benefits, which is way better than being completely disqualified!
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Dmitry Petrov
Quick follow-up on my earlier comment - make sure you understand the partial benefit calculation. In PA, you can earn up to 30% of your weekly benefit rate without reduction. Anything over that gets subtracted dollar-for-dollar from your benefit amount. So if your weekly benefit is $600, you can earn up to $180 from freelancing without any reduction. If you earned $250 that week, they'd subtract $70 from your benefit ($250-$180=$70), so you'd get $530 instead of $600.
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Sofia Gutierrez
•This is super helpful! I didn't realize there was a 30% threshold before they start reducing benefits. That actually makes me feel better since some weeks I don't do any freelance work at all, and other weeks it might be just $150-200.
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Ava Martinez
I think ur overthinking this. Just report ur freelance income each week when you file and they'll adjust ur payment. They might ask for more verification but as long as ur honest about everything it should work out fine. The main thing they care about is that you're available for full-time work and not turning down job offers.
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Zainab Abdulrahman
•Except they put a HOLD on your entire claim while they "investigate" which can take MONTHS! Meanwhile bills are piling up and you're getting collection notices. It's not as simple as "just be honest" when the system is broken.
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Ava Martinez
•True, the delays are awful. But falsely answering questions to avoid investigation will only cause bigger problems down the road with potential overpayment notices or fraud accusations. Better to deal with the delay now than repayments later.
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Miguel Castro
Just to add some clarity: Pennsylvania follows the "ABC Test" for determining employment status. For you to be considered an independent contractor, PA UC needs to establish that: A) You are free from control and direction B) Your service is performed outside the usual course of business of the company C) You are customarily engaged in an independently established trade or profession Based on your description of the writing work (creative freedom, project-based, no formal evaluation), you likely meet criterion A. If the company's main business IS publishing/content creation, you might fail criterion B. For criterion C, they'll look at whether you market your services to others, have your own business identity, etc. Make sure your answers are truthful but framed in a way that accurately represents the independent nature of your relationship with this client. The examiner's questions were trying to fit complex working arrangements into rigid yes/no categories.
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Sofia Gutierrez
•Thank you for this detailed explanation! The company primarily does business coaching, and I write content for their blog/newsletter as an add-on service. I've also written for other clients in the past, so hopefully that helps with criterion C. This makes the examiner's questions make more sense now.
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Andre Rousseau
Based on what you've shared, it sounds like you have a strong case for independent contractor status. The fact that the business coaching company uses your writing as supplemental content (not their core business) and that you've worked with other clients should help with the ABC test criteria that Miguel mentioned. One thing I'd add - when they review your case, make sure they understand that your freelance work doesn't interfere with your job search availability. Keep documenting your job applications and be ready to show you're actively seeking full-time employment. Sometimes UC gets concerned that people with side gigs aren't truly "available" for work. Also, don't panic about the tax department review - that's actually pretty standard when there are multiple income sources. They just need to verify everything adds up correctly. The process is slow and frustrating, but most people with legitimate part-time/freelance work do get approved eventually.
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Javier Torres
•This is really reassuring, thank you! I've been keeping detailed records of all my job applications precisely because I was worried they might question my availability. It's good to know the tax department review is standard - the examiner made it sound so ominous when she mentioned forwarding my case there. I feel much more confident now that I understand the process better and know that others have successfully navigated similar situations.
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Jenna Sloan
I'm dealing with a similar situation right now! I do occasional graphic design work while collecting benefits from my layoff. What helped me was being very specific about the irregular nature of the work when I spoke to the examiner. I emphasized that some weeks I have zero freelance income, other weeks maybe $100-300, and that I never know when projects will come in. The key thing that seemed to matter was showing that my freelance work is truly supplemental and doesn't prevent me from taking a full-time job if one came up. I also made sure to mention that I don't have a formal business license or anything - it's just occasional project work through referrals. My case took about 3 weeks to resolve, and they did classify me as an independent contractor. Now I just report whatever I earn each week and they adjust my benefits accordingly. It's actually worked out fine - some weeks I get my full benefit amount when I have no freelance work, other weeks it's reduced but I still come out ahead with the combined income. Hang in there - the waiting is the worst part, but most people with legitimate side gigs do get approved!
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Sophie Hernandez
•This is exactly what I needed to hear! Your experience gives me so much hope. I think I made the same points you did about the irregular nature and lack of formal business structure. It's encouraging to know that 3 weeks is a reasonable timeframe - I was starting to worry it would drag on for months like some people have experienced. The fact that you're still getting benefits (even if reduced some weeks) is reassuring. Thanks for sharing your experience!
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StarSurfer
I went through almost the exact same situation with PA UC about 6 months ago! I was doing freelance web development on the side when I lost my main job. The examiner asked me all those confusing "direction and control" questions too, and I was terrified I'd lose my benefits entirely. What really helped was being super clear about the income difference - my main job was $65K salary and freelance was maybe $800-1200 per month tops. I also emphasized that the freelance work was completely irregular - sometimes I'd go weeks with nothing, then get a small project. They ended up classifying me as an independent contractor, which actually worked in my favor. Now I just report my freelance earnings each week (if any) and they reduce my benefits accordingly using that 30% threshold someone mentioned earlier. Most weeks I still get my full benefit amount since the freelance work is so sporadic. The waiting period was brutal - took about 4 weeks for them to make a decision. But once it was resolved, the weekly reporting has been pretty straightforward. Don't let them make you feel like having a side gig disqualifies you completely. The system can handle it, it's just confusing how they ask the questions!
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Khalid Howes
•This is so helpful to read! Your situation sounds almost identical to mine - the huge income difference between main job and freelance work, plus the irregular nature of the projects. I'm feeling much more optimistic after reading everyone's experiences here. The 4-week timeline gives me a realistic expectation too. It's frustrating that they make the initial questions so confusing when the actual weekly reporting process seems much more straightforward. Thanks for sharing your story - it really helps to know I'm not alone in dealing with this!
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Megan D'Acosta
I'm going through something very similar right now and this entire thread has been incredibly helpful! I do freelance social media management while collecting UC benefits from my marketing job layoff. The examiner asked me those same confusing yes/no questions about "direction and control" when my work relationship is much more nuanced. What I've learned from reading everyone's experiences is that being classified as an independent contractor seems to be the better outcome for people with legitimate side gigs. The key points that seem to matter most are: 1) emphasizing the huge income difference between your main job and freelance work, 2) stressing the irregular/unpredictable nature of the side work, and 3) showing you're still actively job searching and available for full-time employment. For anyone still waiting on their determination - it sounds like 3-4 weeks is pretty typical, which feels like forever when you're stressed about bills but at least gives us a realistic timeline. The weekly reporting after approval seems much more straightforward than this initial classification process. Thanks to everyone who shared their experiences here - it's made this whole confusing situation feel much less scary!
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Aiden O'Connor
•Exactly! This thread has been a lifesaver for understanding what seemed like such a complicated process. Your point about the nuanced work relationships is spot on - trying to fit modern freelance arrangements into their rigid yes/no questions is so frustrating. I'm still waiting for my determination (it's been about 2 weeks now) but reading everyone's experiences has given me realistic expectations and much less anxiety about the outcome. It's clear that PA UC can handle side gigs, they just make the initial process way more stressful than it needs to be! Fingers crossed we all get our approvals soon.
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Samantha Howard
I'm currently going through this exact same process and this thread has been incredibly reassuring! I do freelance marketing consulting while on UC from my corporate job loss. The examiner's questions were so confusing - they kept asking if I have "complete freedom" in my work, but it's not that black and white when clients give you parameters but you execute independently. What I've learned from everyone's experiences here is that the key is emphasizing three things: 1) the massive income difference (my corporate salary was $55K vs maybe $300-500/month freelancing), 2) how irregular and unpredictable the work is (some months nothing, other months a small project), and 3) that you're actively job searching and available for full-time work. It sounds like independent contractor classification is actually preferable since you still get benefits, just with weekly income reporting and adjustments. The 3-4 week wait time everyone mentioned gives me realistic expectations too. Thank you all for sharing your stories - it's made this stressful process so much more manageable knowing others have successfully navigated the same situation!
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Sasha Ivanov
•This whole thread has been such a relief to find! I'm in week 3 of waiting for my determination on freelance copywriting work and was starting to panic that I'd answered those tricky questions wrong. Reading everyone's experiences has shown me that PA UC actually can handle side gigs properly - they just make the initial interview way more confusing than necessary. Your three key points are exactly what I emphasized too, especially the huge income gap between my $48K salary and maybe $400/month in freelance work. It's good to know that independent contractor status is actually the better outcome since you keep benefits with weekly reporting. Thanks for summarizing what we've all learned here!
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