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Javier Mendoza

Can contractors apply for unemployment Washington ESD - denied twice need help

I've been working as an independent contractor for the past 2 years doing web design, mostly 1099 work. My main client just dropped me with no notice and I'm scrambling to find new work. I tried applying for unemployment through Washington ESD twice now and got denied both times. The letters say something about not having enough wage credits or qualifying wages. I thought contractors could get unemployment benefits now? I've been paying self-employment taxes and everything. Has anyone else dealt with this? I'm really confused about what qualifies as covered wages for contractors in Washington state.

Unfortunately, traditional 1099 contractor work usually doesn't qualify for regular unemployment insurance in Washington. You need W-2 wages from covered employment to establish a claim. The self-employment taxes you pay go to Social Security, not state unemployment insurance. However, there might be other options depending on your specific situation.

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That's so frustrating! I've been working consistently for years but because it's contractor work I get nothing? Are there any exceptions or workarounds?

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There are some limited exceptions - if you were misclassified as a contractor when you should have been an employee, or if you had some W-2 wages mixed in with your contractor work. But those situations require specific documentation.

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I went through this exact same thing last year. Washington ESD is pretty strict about the wage requirements. You need actual payroll wages where unemployment taxes were withheld. The pandemic programs that helped contractors are long gone now unfortunately.

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Did you find any other assistance programs? I'm running out of options here and bills are piling up.

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I ended up having to take a regular W-2 job to get back on track. Look into local assistance programs and food banks while you're job hunting. It's tough but there are resources out there.

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Wait, I thought they changed the rules after COVID? My friend who does Uber got unemployment during the pandemic. Are you sure contractors can't get benefits anymore?

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Those were special federal pandemic programs like PUA that ended in 2021. Regular state unemployment has always required traditional employment with payroll tax contributions.

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Oh that makes sense, I was wondering why I kept hearing conflicting information about this.

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Have you tried calling Washington ESD directly to discuss your specific situation? Sometimes there are nuances they can explain better over the phone. I know their lines are busy but if you use something like Claimyr (claimyr.com) it can help you get through faster. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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I've tried calling but keep getting disconnected after waiting forever. What's Claimyr exactly? Never heard of it before.

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It's a service that helps you get through to Washington ESD phone lines without the endless waiting and getting hung up on. Really helped when I needed to resolve an issue with my claim status.

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I used Claimyr too when I was dealing with adjudication delays. Much better than spending hours on hold just to get disconnected.

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this is exactly whats wrong with the system!!! contractors pay taxes too but when we need help theres nothing. meanwhile people who quit their jobs can sometimes get benefits but those of us who lost clients through no fault of our own get denied

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I understand the frustration, but the unemployment system is insurance-based. You have to pay into it through payroll deductions to be eligible later. It's not a general safety net program.

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still feels unfair when so many people are doing gig work now. the system needs to catch up with how people actually work these days

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Check if any of your contractor work should have been classified as employee work. Some companies illegally classify employees as contractors to avoid paying unemployment taxes. If you can prove misclassification, you might have a case.

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How would I prove that? My main client did control when and how I worked pretty closely, made me use their systems and attend meetings.

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Those are actually red flags for misclassification! Look up the Washington state worker classification test. If they controlled your work methods, required specific hours, provided tools/equipment, that might indicate employee status.

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Be careful with this route though - you'd need to file a worker classification determination with Washington ESD and it can take months to resolve. Plus you'd need solid documentation.

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Did you have ANY W-2 wages in the past 18 months? Even part-time work or a brief regular job? Washington ESD looks at your base period wages and sometimes even small amounts of covered wages can establish a claim.

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I did some part-time retail work for about 3 months last year while building up my client base. Would that count for anything?

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Definitely! That could be your ticket to benefits. You need to reapply and make sure to report those W-2 wages. The system might not have picked them up automatically if it was a small employer.

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This is good advice - I forgot about my brief restaurant job when I first applied and it made all the difference when I included it later.

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Have you looked into Pandemic Emergency Unemployment Compensation or Extended Benefits? I know some programs were extended beyond the initial COVID period.

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All the pandemic-related unemployment programs ended by September 2021. There are no federal extensions currently available, and Washington state doesn't have extended benefits triggered right now.

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Oh wow, I didn't realize they were completely done. That really limits options for people in unusual work situations.

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Update: I dug up my old W-2 from that retail job and I'm going to try reapplying. Fingers crossed that those few months of covered wages are enough to qualify for something. Thanks everyone for the advice about making sure to include ALL employment history.

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Good luck! Make sure you have all the employer information handy including their FEIN number if possible. Washington ESD can be picky about incomplete wage information.

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Definitely worth trying! Even if the weekly benefit amount is small due to limited wages, it's better than nothing while you rebuild your client base.

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If you do get approved, remember you'll need to do job searches and be available for work. The requirements are pretty strict about actively seeking employment, not just looking for new clients.

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Would looking for regular W-2 employment count? I'm open to going back to traditional work if needed to get stable income.

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Yes, that would definitely count! You need to register with WorkSourceWA and document your job search activities. They want to see you're genuinely available for covered employment.

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Just wanted to add - if you do need to call Washington ESD about your reapplication, the Claimyr service mentioned earlier really does work. I was skeptical at first but it saved me hours of trying to get through on my own.

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I might try that if my online application gets complicated. The Washington ESD website can be confusing when you have mixed employment types.

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The phone reps are usually pretty helpful once you actually reach them. They can explain the wage calculation and help you understand what quarters count toward your base period.

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Don't forget about other safety net programs while you're figuring this out. SNAP benefits, utility assistance, housing help - there are resources beyond just unemployment insurance. Check with 211 for local programs.

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That's a good point, I hadn't thought about other assistance programs. I've been so focused on the unemployment denial I forgot there might be other options.

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Exactly! And many of these programs are designed to help people in transition between work situations, which sounds like where you are right now.

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similar situation here - been freelancing for 3 years and thought I was out of luck until I remembered I had worked temp assignments through an agency. those were W-2 wages that I totally forgot about when I first applied

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Did the temp agency wages end up being enough to qualify you for a decent weekly benefit amount?

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Not huge but enough to help with basic expenses. better than nothing and gave me breathing room to find steady work again

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The wage requirements can be tricky to understand. You need wages in at least 2 quarters of your base period and meet the minimum dollar thresholds. Washington ESD has a benefit calculator on their website that might help you estimate what you'd qualify for.

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I'll check out that calculator once I gather all my wage information. Hopefully that retail job spread across enough quarters to meet the requirements.

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Pro tip: when you reapply, be very thorough about listing ALL employers, even short-term ones. Washington ESD can verify wages electronically for most employers, but sometimes smaller businesses don't report right away.

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Should I include the contractor work too, or just focus on the W-2 employment? I don't want to confuse things.

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Focus on the W-2 wages for the unemployment application. The contractor income might be relevant for other assistance programs but won't help with UI eligibility.

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Agreed - stick to covered employment only when filling out the application. Adding contractor wages will just muddy the waters and potentially delay processing.

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Keep documentation of everything when you reapply. Pay stubs, W-2s, employment dates, employer contact info. If there are any issues with wage verification, having that paperwork ready will speed up the process.

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Good advice. I'm already gathering everything I can find from that retail job. Hopefully I kept better records than I thought.

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One more thing - if you do qualify and get approved, make sure you understand the job search requirements. With your contractor background, you'll need to show you're genuinely seeking regular employment, not just more freelance work.

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That makes sense. I'm actually open to regular employment at this point anyway - the uncertainty of contractor work is getting old.

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That's the right attitude! Washington ESD wants to see you're able and available for covered work. Your contracting skills would probably translate well to a marketing or communications role.

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Hope it works out for you! The system definitely isn't perfect for people with non-traditional work histories, but finding those W-2 wages might be your solution. Keep us posted on how the reapplication goes.

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Thanks everyone for all the help and advice. I feel much more hopeful about my options now. Will definitely update if I get approved this time around.

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