PA UC system confusion - is it mixing up my W2 job with my contractor side gig?
Just got laid off from my full-time IT job last week and trying to file for PA unemployment. I'm stuck in a really confusing part of the application. I have a small side gig as an independent contractor (just some weekend web design work), so I answered 'yes' to the self-employment question. But now in the 'work history' section, it's asking me all these contractor-related questions that seem more focused on my side gig than my actual W2 job where I was laid off. Is the system confused about which job I'm actually filing unemployment for? Should I have answered 'no' to self-employment even though I do have this minor side income? I'm worried about messing up my claim and getting denied benefits from my main job layoff. Has anyone dealt with this before?
16 comments
Isabella Santos
You definitely need to report both jobs, but the system can be confusing when you have mixed income types. What's happening is that after you select 'yes' to self-employment, the PA UC system wants details about ALL your work, including the contractor position. You should continue filling out information for both jobs - your W2 position AND your independent contractor work. Make sure to clearly distinguish between them when entering employer information. Your benefits will primarily be calculated from your W2 wages, but you'll need to report ANY earnings from your contractor work each week when you file your weekly claims.
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Malik Davis
•Thanks for clarifying! So I should just keep going and make sure I put in all the info for both jobs? I'm just worried because it's asking for a business license number for my side gig and I don't really have one - it's super casual work.
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Ravi Gupta
OMG i had this EXACT same problem when i filed last month!!! the system is so confusing and i almost gave up. i kept getting stuck in loops asking about my etsy shop when i was trying to claim from my REAL job. i ended up having to call them and got frustrated because i couldnt get thru for DAYS. i finally got thru to someone and they fixed it for me over the phone. make sure u have ur last pay stubs ready when u call.
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GalacticGuru
•How did you manage to get through? I've been trying to call for the past two weeks and only get busy signals... 😫
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Freya Pedersen
I've been filing UC with a side job for 2 years now. You need to report both, and here's why - they calculate your benefit based on your W2 job, but then each week you report your contractor income and they deduct a portion from your weekly benefit. If you don't report the contractor job now, it'll cause problems later.
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Malik Davis
•That makes sense. Do you know if there's a minimum amount I need to earn from the side gig before I have to report it on weekly claims? Sometimes I only make like $50-75 in a week from the contract work.
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Omar Fawaz
I've been trying to resolve a similar issue with my claim for weeks. Their system really isn't designed well for people with multiple income sources. I've called over 200 times and can't get through - just busy signals or getting disconnected. I finally found a service called Claimyr (claimyr.com) that got me through to an actual UC rep after trying for weeks. They have a video showing how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. The rep was able to help me sort out my W2 vs contractor confusion in about 10 minutes. Saved me so much stress!
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Chloe Anderson
•I'll second this recommendation - I used Claimyr too when I had an issue with my hybrid employment situation. The UC representative explained that any income over $6 needs to be reported on weekly claims and they'll adjust your benefit amount accordingly. Make sure you keep good records of your contractor earnings each week.
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Diego Vargas
To answer your specific question: No, the system isn't confused - it's working as designed. It needs information about ALL employment, including self-employment. Here's what's happening: 1) You correctly answered 'yes' to self-employment 2) The system now needs details about BOTH jobs 3) Your benefit rate will be calculated primarily from your W2 earnings 4) Your contractor earnings will affect your weekly benefit amount For the business license question - if you don't have one, you can typically enter 'N/A' or '0000000'. The important thing is to be truthful about all sources of income. When doing weekly certifications, you'll need to report ANY contractor earnings, even small amounts.
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Malik Davis
•Thank you for the detailed breakdown! That makes the process much clearer. I'll continue with the application and make sure to report everything accurately.
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GalacticGuru
im confused why r u even applying if u still have a job??? doesnt that disqualify u anyway?? i thought u had to be COMPLETELY unemployed to get benefits
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Isabella Santos
•That's not correct. In Pennsylvania, you can receive partial UC benefits if you're partially unemployed (lost your main job but have part-time work). Your weekly benefit is reduced based on what you earn from your part-time work, but you can still qualify for benefits. This is actually quite common.
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Ravi Gupta
what ever you do, DON'T say no to self-employment if you actually are self-employed... thats considered fraud and can get u in big trouble. my friend did that and ended up having to pay back all her benefits plus penalties!! just be honest and keep going with the application.
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Malik Davis
•Oh wow, that's scary! Definitely don't want to commit fraud. I'll keep going with the application and report everything correctly. Thanks for the warning!
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Diego Vargas
Just to add some specifics that might help: When you file your weekly certifications, PA UC has a partial benefit credit (PBC) that allows you to earn some money before your benefits start being reduced. In 2025, you can earn up to about 30% of your weekly benefit amount before reductions start. If your contractor work varies week to week, some weeks you might get full benefits and others reduced, depending on what you earn. Just make sure to accurately report ALL earnings during the week you PERFORM the work (not when you get paid).
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Malik Davis
•That's really helpful to know about the 30% threshold! My contractor work definitely varies week to week, so some weeks I might not hit that threshold. And good to know it's when I do the work, not when I get paid - that would have confused me.
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