PA UC says I'm ineligible after switching from W2 to independent contractor - confused about partial benefits

The issue here is that PA UC has different rules for self-employment versus part-time W2 work. When you become self-employed (independent contractor/freelancer), you're considered to have started a business. UC generally views this as making you ineligible because you're now the boss of your own company, even if you're not making much money yet. If you were returning to part-time W2 employment, you could receive partial benefits. But self-employment is treated differently under UC regulations. You should definitely appeal this determination if you just got it - you have 15 days from the date on the notice to file your appeal. In your appeal, you'd need to argue that your self-employment is minimal and not providing substantial income.

same situation happened to me last yr... its so dumb. they stop everything the secnd u report any self employment no matter how small. they dont care if ur barely making anything

This is a common misunderstanding with PA unemployment. The key distinction is that with self-employment/contractor work, you are technically running your own business with no set hours. This differs from part-time W2 employment where you have defined hours and an employer. Here's what you need to know: 1. PA UC considers you "unemployed" only when you're not working at all or working reduced hours for a W2 employer 2. When you become self-employed, UC considers you to have full-time work available to you (even if you're not getting enough clients yet) 3. The rationale is that as a self-employed person, you could theoretically work full-time hours seeking clients You can try appealing with the argument that your self-employment is truly limited in scope and hours, but these appeals rarely succeed unless you can prove the work is extremely minimal (like a few hours a month). Did your determination letter specifically mention self-employment as the reason?

I had EXACTLY this problem!!! The whole system is designed to PUNISH people who try to slowly get back on their feet instead of helping us!!! I got cut off completely when I started doing Uber just 10 hours a week while looking for a real job. It's complete BS because they look at it like you're "fully employed" the second you do ANY independent work!!! I tried calling PA UC like 50 times and NEVER got through. Wasted hours of my life listening to that stupid hold music just to get disconnected!!!!!

Actually, there is a potential loophole you might be able to use. PA UC does have something called the Self-Employment Assistance Program (SEAP) that allows people to start businesses while receiving unemployment. However, you need to apply for this BEFORE you start any self-employment activities, and it's only available to certain claimants who are identified as likely to exhaust regular benefits. Since you've already started freelancing, this probably won't help your current situation, but it's important for others to know about. For your situation, your best bet is to appeal and argue that your freelance work is just temporary, minimal side work while you continue to look for full-time W2 employment. Make sure to emphasize that you're spending most of your time seeking regular employment and that the freelance work is just to help make ends meet temporarily. Did you register a business name or get an EIN for your freelance work? That sometimes makes it harder to argue it's just temporary side work.

wait im confused. if u make less money freelancing than ur weekly benefit amount why cant u get partial? thats how it works with regular part time jobs right?

UPDATE: I called PA UC again (finally got through!) and got more details. The issue is that they consider self-employment as having "full time work available" even if I'm not fully booked with clients yet. The rep explained that because I have control over my schedule and could theoretically take on more work, they view me as employed full-time. I'm going to appeal based on the fact that I'm still actively looking for full-time W2 employment and can document my job search efforts. The freelance work is just to help pay bills while I look for permanent work. The rep said that might help my case, especially if I can show that the freelance work is limited in scope and temporary. I'll update again after my appeal!

my friend had this exact situation and she just stopped reporting the freelance income temporarily until she found a new full time job. not saying thats what you should do but thats what she did. the system is broke so sometimes u gotta do what u gotta do to survive

I still think its so unfair that they treat self-employment differently than part-time W2 work. It's like they WANT to keep us dependent on benefits instead of letting us slowly build up work. How are we supposed to transition back to full employment if they cut us off the second we try to start something??? The whole system is broken!!!