1099 contractor hours - are they reported to ESD or do I need to track them myself?

As a 1099 contractor, your hours aren't reported to ESD by anyone. Your client doesn't report your hours because you're not an employee - they only file a 1099 form with the IRS showing your total earnings. Self-employed individuals (which is what you are as a 1099 contractor) typically aren't eligible for regular unemployment benefits because you don't have employers paying into the unemployment insurance system for you. However, it's still good to keep detailed records of your hours, clients, and earnings for tax purposes and in case special programs become available (like during COVID when self-employed people could get benefits through special programs).

The previous comment is correct - as a 1099 contractor, you're considered self-employed, and your clients don't report your hours to ESD. Traditional unemployment insurance is based on W-2 employment where employers pay into the system. If you want to qualify for regular unemployment benefits in the future, you'd need to have W-2 employment. Some people maintain part-time W-2 jobs alongside their contract work to maintain eligibility. Keep ALL your records though - hours worked, payment amounts, contracts, etc. While regular UI may not be available to you, Washington state has occasionally had programs for self-employed individuals during economic downturns.

i was on 1099 for years n tried to file when work dried up last yr... TOTAL NIGHTMARE!! esd kept sayin i wasnt eligible cuz no employer paid into the system. i tried explainin i had been payin self-employment taxes but they didnt care. spent WEEKS tryin to get thru to someone who understood my situation but the phone lines were always busy or id get disconnected after waitin for hours finally used a service called Claimyr to get through to an actual human at ESD (claimyr.com) - they have a demo vid that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 the agent finally explained that as a 1099 worker i needed to have W2 wages somewhere in my base year to qualify. wish someone had told me that BEFORE i spent weeks stressing!

Yes, even part-time W-2 work would establish some eligibility, though your benefit amount would be based on those W-2 earnings only, not your 1099 income. Remember that to qualify for UI in Washington, you need to have worked 680 hours in your base year (which is the first four of the last five completed calendar quarters before you file). Another option some contractors consider is paying for private unemployment insurance, though it's typically expensive compared to the state system.

The portable benefits legislation for gig workers is still in development - nothing concrete has been implemented yet that would help 1099 contractors qualify for unemployment in Washington. It's been discussed for years but hasn't made it through as actual policy. One additional thing to mention: some companies misclassify workers as 1099 contractors when they should legally be W-2 employees. If you work set hours, use their equipment, work on-site, and they control HOW you do your work (not just the end result), you might actually be misclassified. In that case, you could potentially file for unemployment and request an investigation into your employment status. But that's a lengthy process with no guaranteed outcome.

i think everyone's missing something important here - even if u cant get regular unemployment as 1099, u should STILL KEEP DETAILED RECORDS of all ur work!! dates, hours, clients, contracts, everything!! during covid they had PUA for self-employed ppl & having good records made it WAY easier to prove ur income. who knows what other programs might come along in the future? better to have the records & not need them than need them & not have them!!

Just wanted to add from my experience - I've been doing 1099 web development work for 3 years and learned this the hard way when I had a slow period last year. What everyone is saying is correct - no automatic eligibility for regular UI benefits as a contractor. One thing that really helped me was setting up a separate savings account specifically for "self-employment insurance" - I put away about 10-15% of each payment to cover gaps between contracts. It's not the same as unemployment benefits, but it gives you some cushion when work slows down. Also, definitely join freelancer communities and networking groups in your area. When one contract ends, having a good network can help you find the next one faster than waiting for benefits that might not come. The Washington Freelancers Union has some good resources too. Keep those records organized though - you never know when another emergency program like PUA might be available for self-employed folks!

I'm in a similar boat as a newer freelancer and this thread has been super eye-opening! I had no idea that 1099 contractors aren't automatically eligible for unemployment benefits. It's honestly pretty scary to think about having zero safety net if work dries up. The advice about keeping detailed records makes total sense - I've been pretty casual about my record-keeping but clearly need to get more organized. And that idea of setting aside 10-15% for a "self-employment insurance fund" is genius. I'm definitely going to start doing that immediately. One question for those more experienced - is it worth looking into getting some part-time W-2 work just to maintain unemployment eligibility? Like maybe a few hours a week at a local business or something? It seems like that might be worth it for the peace of mind, even if the hourly rate is lower than my freelance work. Thanks everyone for sharing your experiences - this is exactly the kind of real-world info I needed to hear!

As someone who just started freelancing last month, this conversation has been incredibly valuable! I had no clue about the unemployment eligibility issues for 1099 contractors - definitely wish I'd known this before making the jump from my W-2 job. The savings fund idea is something I'm implementing immediately. I'm thinking of opening a high-yield savings account specifically for this and automating the transfers so I don't have to think about it. One thing I'm curious about - for those who've been doing this longer, how do you handle health insurance? I'm still on COBRA from my previous job but that's going to run out eventually. Is there any connection between health insurance options and unemployment eligibility, or are those completely separate issues? Also, does anyone know if there are any professional liability insurance options that include some kind of income protection for contractors? Seems like it might be worth exploring all possible safety nets. Thanks for all the real-world insights - this is exactly the kind of practical advice you don't get in the "start freelancing" articles online!