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Leila Haddad

Can independent contractors get unemployment benefits in Washington state?

I've been working as a freelance graphic designer for the past two years and my main client just cut my contract. I'm scrambling to find new work but it's been really slow. A friend told me that independent contractors might be able to get unemployment now but I thought that was only during COVID? Does anyone know if Washington ESD covers 1099 workers or am I out of luck? I never paid into UI as a contractor so I'm confused about how this would even work.

Independent contractors generally can't get regular unemployment benefits in Washington since you didn't pay into the UI system. However, there are some exceptions. If you were misclassified as a contractor when you should have been an employee, you might be eligible. You'd need to prove the work relationship met employee criteria - like having set hours, using company equipment, being directed how to do the work, etc.

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I definitely worked my own hours and used my own computer/software. Pretty sure I was correctly classified as a contractor.

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The misclassification thing is tricky. Even if you thought you were properly classified, Washington ESD might determine otherwise during the investigation process.

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You should still file a claim even as an independent contractor. Washington ESD will review your work history and determine eligibility. Sometimes contractors have a mix of W-2 and 1099 work, and if you had enough W-2 wages in your base period, you could qualify. The worst they can do is deny it, but at least you'll know for sure.

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I did have a part-time W-2 job about 18 months ago but it wasn't much. Maybe $8,000 total over 6 months.

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That might be enough depending on when exactly you worked. Washington ESD looks at wages from specific quarters in your base period. You should definitely apply and let them calculate it.

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I tried filing as a contractor last year and got denied immediately. The whole process was confusing and when I called Washington ESD I kept getting disconnected or put on hold for hours. Super frustrating when you're already stressed about money.

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I had the same problem trying to reach someone at Washington ESD about my contractor status. I ended up using Claimyr.com to get through to an actual agent. They have this system that handles the calling for you and there's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Finally got to talk to someone who could explain my options.

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Never heard of that but honestly anything is better than spending my whole day on hold. Did they charge you a lot?

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It was worth it to actually get answers instead of wasting hours calling myself. The agent was able to look at my work history and explain exactly why I didn't qualify.

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just apply anyway, whats the worst that happens? they say no? at least you tried. i know people who got approved for weird situations so you never know

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This is actually good advice. Washington ESD eligibility can be complex and there are edge cases that aren't immediately obvious.

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Exactly! I thought I wasn't eligible because of my work situation but turned out I qualified based on wages from a different job I'd forgotten about.

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The whole system is so confusing. I've been a contractor for 5 years and never thought I could get unemployment. Are you saying if I had ANY W-2 wages I might qualify? Even if most of my income was 1099?

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Yes, that's possible. Washington ESD looks at ALL wages in your base period, not just your most recent work. If you have sufficient W-2 wages during the right timeframe, your 1099 income doesn't disqualify you.

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This is news to me. I wish someone had told me this years ago when I lost my biggest client.

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Same here! I had no idea the W-2 wages could still count.

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Another thing to consider - if you're actively looking for new clients/contracts, you need to meet the job search requirements. For contractors, this usually means looking for both employee positions AND contract work. You can't just look for more freelance gigs and expect that to satisfy Washington ESD's requirements.

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Oh wow, I didn't know that. I was planning to just look for more design contracts. So I'd have to apply for regular jobs too?

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Typically yes. You need to show you're available for and seeking work as an employee, not just contract work. This trips up a lot of freelancers.

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That seems backwards. If someone's been contracting successfully, why force them to look for employee work?

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I'm in a similar boat - lost my main consulting contract and trying to figure out if I qualify. Has anyone actually gotten approved as a contractor recently? All the info online seems outdated or contradictory.

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I know someone who got approved but it was because Washington ESD determined they were misclassified. The company was treating them like an employee but paying them as a contractor. It took months to sort out though.

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The key is really in the details of your work relationship. If you can show you were economically dependent on one client, worked set hours, used their equipment, etc., you might have a case for misclassification.

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This whole thread is making me realize I should have been paying more attention to my classification. I've been doing the same work for the same company for 3 years as a "contractor" but they tell me when to work, provide all the tools, and I can't work for anyone else. Sounds like I might have been misclassified?

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That definitely sounds like you might have been misclassified as an independent contractor. The exclusivity clause and them providing tools are big red flags. You should look into filing for unemployment and let Washington ESD investigate.

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How do I even start that process? Do I just file a regular claim and explain the situation?

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Yes, file a regular claim and be honest about your work situation. Washington ESD will investigate and make a determination about your classification. Keep all documentation about your work relationship.

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The unemployment system is such a nightmare to navigate. I spent weeks trying to understand if I qualified and finally had to get help from Claimyr to actually talk to someone at Washington ESD who could explain my situation. Turns out I did have enough wages from an old job to qualify even though I'd been contracting for 2 years.

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That's encouraging! So they counted wages from way back?

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They look at wages from up to 18 months ago depending on when you file. My base period included wages from a job I'd almost forgotten about. The Claimyr service was a lifesaver for getting through to an agent who could walk me through the calculation.

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How does that Claimyr thing work? I'm tired of calling Washington ESD and getting nowhere.

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Don't get your hopes up too much. I tried filing as a contractor and it was a dead end. Even with some W-2 wages mixed in, they said I didn't have enough in the right quarters. The whole base period calculation is really specific about timing.

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That's frustrating but at least you know for sure. Better to try and get a definitive answer than wonder.

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Yeah, I'm going to file anyway. Even if it's a long shot, I need to know one way or the other.

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Make sure you understand the difference between being an independent contractor and being self-employed. If you had multiple clients and ran it like a real business, that's different from being a contractor for one main client. Washington ESD treats these situations differently.

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I had one main client that was about 80% of my income and a few smaller ones. Does that matter?

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It might. Heavy dependence on one client can sometimes support a misclassification argument, especially if they controlled how you did the work.

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The economic reality test is what they use. If you were economically dependent on one client, that can indicate an employer-employee relationship even with a 1099.

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Whatever you do, don't lie on your application. Be completely honest about your work situation and let Washington ESD make the determination. Fraud penalties are no joke and not worth the risk.

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Definitely planning to be completely honest. Just want to make sure I understand what I'm eligible for before I apply.

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Good approach. Honesty is always the best policy with unemployment claims. They have ways of verifying everything anyway.

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The bottom line is that every situation is different. What worked for someone else might not apply to your specific circumstances. The only way to know for sure is to file and let Washington ESD review your case. Don't assume you're not eligible without trying.

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Thanks everyone for all the advice. I'm going to gather my wage information and file a claim. Even if it's denied, at least I'll have tried.

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That's the right attitude. You might be surprised by the outcome. Good luck!

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Hope it works out for you. Keep us posted on what happens!

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As someone who's been through this process, I want to add that timing really matters when you file. Washington ESD uses a "base period" that looks at wages from 12-18 months ago, not your most recent work. So even if you've been contracting for years, if you had W-2 wages during the right timeframe, you could still qualify. I'd recommend gathering all your wage statements from the past 2 years before you apply - you might be surprised what qualifies. Also, if you do get approved, remember that you'll need to report any contract income you earn while collecting benefits. It doesn't necessarily disqualify you, but it will reduce your weekly benefit amount.

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This is really helpful information about the base period timing! I had no idea they look back that far. So if I had that part-time W-2 job 18 months ago, it could still count toward my base period even though I've been freelancing since then? That gives me more hope that I might actually qualify. I'll definitely gather all my wage statements like you suggested before filing.

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Yes, exactly! The base period can include wages from up to 18 months ago depending on when you file. Washington ESD uses specific quarters to calculate eligibility, so that W-2 income from your part-time job could definitely still count. I was in a similar situation where I'd forgotten about a seasonal job from over a year ago, but those wages ended up being what qualified me for benefits. The key is that they look at your highest earning quarters during the base period, not just your most recent work. Definitely worth applying with all your documentation ready.

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This is exactly the kind of detailed information I needed! I had no idea about the base period looking back 12-18 months. That $8,000 I made from my part-time W-2 job might actually matter then. I'm definitely going to dig up all my old pay stubs and tax documents before I file. The part about reporting contract income while collecting benefits is also good to know - I was worried that any freelance work would completely disqualify me. Thanks for sharing your experience, it's really encouraging to hear from someone who actually went through this process successfully.

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This is super helpful - I wish I had known about the base period timing earlier! I'm the original poster and I'm definitely going to file now after reading all these responses. That part-time job I had 18 months ago for $8,000 might actually help me qualify. One question though - when you say I need to report contract income while collecting benefits, does that mean if I pick up a small freelance project I have to report it even if it's just a few hundred dollars? And do you know if there's a limit to how much contract work I can do before it affects my benefits?

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