Will contract work after layoff reduce my TWC benefits when contract ends?

I was in this EXACT situation last year and ended up REALLY regretting taking the contract work!!! My benefits were like 40% lower when i finally applied after my contract ended. The TWC based my benefit amount on the most recent quarter which was the contract work instead of my full-time salary. HUGE MISTAKE on my part!!!

The previous comment isn't quite accurate. TWC calculates your benefit amount based on your base period, which is the first four of the last five completed calendar quarters before you file your claim. So here's what you need to consider: If you take the contract work for a few months and then file, your base period might shift forward, potentially replacing a quarter of higher earnings with a quarter of lower contract earnings. This could affect your benefit amount. However, if your contract work only spans one quarter, and the other quarters in your base period had good earnings, the impact might be minimal. It really depends on your specific earnings history and when exactly you file.

just wondering why not do both?? file for unemployment now AND do the contract work but report your earnings each week. if u earn too much you don't get benefits that week but when contract ends u already have claim open. that's what my brother did

You definitely need to be super careful with this. I took a contract gig after layoff thinking I could just resume my unemployment after it ended and ended up with all kinds of problems. TWC sent me a letter saying I needed to file a new claim after the contract ended. Then they did a whole new calculation and my benefits were less. But I think it depends on how much time passes and which quarters get counted.

when i got laid off last yr my company did same thing. i took the contract and just didnt tell TWC about it lol. got both unemployment and contract $$$. i know im probably not supposed to say that but whatever worked for me!

I went through something similar and found that calling TWC directly was the only way to get a clear answer for my specific situation. Problem is, it took me DAYS of constant redialing to finally get through to someone. After endless busy signals and disconnections, I discovered Claimyr (claimyr.com) which got me connected to a TWC agent in about 20 minutes. They have a video demo showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh The agent I spoke with explained exactly how my benefits would be calculated both ways and helped me make the best decision for my situation. Definitely worth getting personalized advice since there are so many variables that can affect your specific case.

Something nobody mentioned - make sure you're ACTUALLY being classified as an independent contractor and not just staying on as a part-time employee. Those are different things with different implications for unemployment. Ask for a copy of the contract before you agree to anything.

Here's my recommendation based on your situation: 1. File for unemployment immediately following your last day as a full-time employee 2. Accept the contract work if you want the income 3. Report your contract earnings each week when requesting payment 4. When you earn too much to receive benefits, you'll simply not get benefits for those weeks 5. When the contract ends, continue requesting payment as normal This approach establishes your benefit amount based on your full-time work history, keeps your claim active, and allows you to earn additional income without permanently reducing your benefit amount. If you wait to file until after the contract ends, you risk having a lower benefit calculation. The key is filing immediately after your W-2 employment ends.

Remember too tht if u do the contract they'll stop your benefits for any week u report income over your weekly benefit amount plus $25. So if ur UI is like $500/week and u earn $526 in contract work that week u get ZERO benefits!! But at least ur claim stays open for when contract ends.

I'm in a similar boat right now - got laid off two weeks ago and my employer offered me freelance work to wrap up some projects. After reading through all these responses, I think the consensus is pretty clear: file for unemployment IMMEDIATELY after your last W-2 day, then take the contract if you want it. What really helped me understand this was realizing that TWC calculates your benefit amount based on your earnings history in specific quarters, not your most recent work. So if you file now, your benefits are calculated on your full-time salary quarters. If you wait and file later, you might end up with contract work affecting those calculations. The weekly reporting thing makes total sense too - you're basically trading some weeks of benefits for contract income, but keeping your claim alive so you don't have to start over. Way better than risking a lower benefit calculation later. Thanks everyone for sharing your experiences - this thread is going to save me from making a costly mistake!