PA UC flagged my claim for switching from W-2 to 1099 self-employment - why is this an active issue?

This is actually a common issue with PA UC. When you indicate you're self-employed (even if making very little), they automatically flag your claim for review to determine if you're 'able and available' for work. It doesn't mean automatic denial, but they need to verify you're still actively seeking employment and that your self-employment doesn't prevent you from accepting suitable work. You should get a questionnaire about your self-employment situation - fill it out completely and honestly. Make sure to emphasize that you're still looking for regular employment while trying to get your business started.

ugh SAME THING happened to me!!! took FOREVER to resolve. they want to make sure ur not turning down W2 work to do ur 1099 stuff

The active issue is triggered because PA UC needs to determine if your self-employment makes you ineligible for benefits. Here are the key factors they're looking at: 1. Are you still able and available for full-time W-2 employment? 2. Are you actively seeking W-2 employment while self-employed? 3. How many hours are you working on your self-employment? 4. Would you quit your self-employment to accept suitable W-2 work? You need to contact them directly to answer these questions. Make sure you're documenting your job search efforts (PA requires at least 2 work search activities per week). Also be prepared to provide details about your consulting work hours and any income earned.

i switched from w2 to 1099 last year and got denied cuz they said i wasnt available for work. appealed and won tho! make sure you can prove ur still looking 4 w2 jobs while doing ur self employement stuff

I've been trying to call the PA UC office for THREE WEEKS about a similar issue on my claim and cannot get through. Busy signal every single time or it disconnects me after 2 hours on hold. Anyone know a better way to reach them? This is driving me crazy!

One more thing - make sure you're accurately reporting ANY income from your self-employment on your weekly claims. Even if it's just $150, you need to report it. If you don't, they could hit you with an overpayment later. Your benefits will just be reduced by a percentage of what you earn, not dollar for dollar.

my cousin had same problem and they made him wait 6 weeks before approving his claim! he had to fill out some form about his self employment hours and stuff. good luck!

An important point that hasn't been mentioned: In 2025, PA UC has been more thoroughly reviewing self-employment situations because of the high number of overpayments they had to process during the pandemic years. They're being extra cautious with these claims now. The good news is that if your self-employment is just getting started and you're making under the Partial Benefit Credit (PBC) amount, you should still qualify for at least partial benefits assuming you meet all other eligibility requirements and are truly available for full-time work.

Update: I finally got through to UC yesterday! The agent explained that the active issue was indeed related to my self-employment. They're sending me a questionnaire asking about my business hours, whether I'd accept full-time work, and details about my work search activities. She said once I return that with proper documentation, they should be able to process my claim. Will post another update when I hear back.