Will PA UC benefits be affected if I do 1099 contract work? Confused about weekly filing

Yes, you need to report ALL income when you file weekly claims, including 1099 contract work. When filing your weekly certification, answer 'yes' to the question about whether you worked, and report your gross earnings (before taxes) for the week. PA UC reduces your weekly benefit amount based on your earnings - they don't automatically cut you off completely. If you earn less than your weekly benefit amount, you'll receive partial benefits. You're still eligible for some benefits as long as you don't earn more than your weekly benefit amount plus the partial benefit credit (usually $30).

i was in exact same spot last yr. u HAVE to say yes when they ask if u worked or ull get in BIG trouble later. they made me pay back $4200 cuz i didnt report some gig work i did. total nightmare!!!!

My sister's boyfriend's cousin got kicked off unemployment completely when he started doing DoorDash on the side. The system is rigged against people trying to make ends meet while looking for real work.

For 1099 work, you report earnings for the week you PERFORMED the work, not when you get paid! This is super important and trips up a lot of people. Keep a detailed log of your hours and what you earned each day. PA UC system is designed for W-2 employees, so it's confusing for freelancers. Also make sure you're still doing your weekly work search activities (applying to jobs, etc) since that's still required even with part-time contract work.

has anyone tried calling the UC service center about this? i have a similar situation but cant get through on the phone been trying for 2 weeks every morning

Here's what happens with your benefits when you report 1099 income: 1. PA takes 40% of your gross earnings and subtracts that from your weekly benefit amount 2. You get to keep the remaining benefit 3. If your 40% calculation exceeds your weekly benefit, you get $0 for that week BUT you don't lose future benefits Example: If your weekly benefit is $400 and you earn $500 in 1099 work, they'll calculate $500 × 40% = $200, then $400 - $200 = $200 in benefits for that week. This is actually a decent system that encourages people to work part-time while job hunting since you don't lose benefits dollar-for-dollar.

just remembr they check w/ the IRS later so dont try to hide income. they WILL find out n make u pay it ALL back + penalties!!

Another thing nobody mentioned yet - since you're doing 1099 work, NO taxes are being withheld! Remember to set aside about 30% of what you make for taxes (15.3% self-employment tax PLUS income tax). I got DESTROYED at tax time my first year doing freelance while on unemployment because I spent all the money and then couldn't pay my taxes. DO NOT MAKE MY MISTAKE!!!

One more critical piece of info - when you do 1099 work, you need to maintain documentation that you remain "able and available" for full-time work. PA UC can disqualify you if they determine your self-employment interferes with your ability to accept full-time work. Keep records of your job search activities and make sure your contract work schedule would allow you to accept a full-time job if offered one.

Thanks everyone for the helpful advice! Just to summarize what I've learned for anyone else in this situation: - Report 1099 earnings in the week you PERFORM the work, not when paid - Answer YES to working in weekly claims and report gross earnings - Only 40% of earnings count against your benefit amount - Keep detailed records of hours/earnings and job search activities - Set aside money for taxes since nothing is withheld - Make sure contract work doesn't interfere with availability for full-time employment I'm going to accept the contract work and make sure I report everything correctly. Seems like I can earn some additional income while still getting partial benefits until I find a permanent position.