Do contractors get unemployment benefits in Washington state?

That's what I was afraid of. Is there any way around this or any other programs that might help contractors?

There might be some exceptions depending on how your work was classified. If you were misclassified as a contractor when you should have been an employee, that could change things.

It's because contractors don't pay unemployment taxes like employees do. You're essentially running your own business, so you're responsible for your own safety net.

I guess that makes sense but it still sucks when you're struggling to find new clients

Thanks for the suggestion! I'll check that out. Did you end up qualifying for benefits?

Turned out I was correctly classified as a contractor so no benefits, but at least I got a definitive answer instead of wondering.

PUA (Pandemic Unemployment Assistance) ended in September 2021. That was a temporary federal program specifically for the pandemic. Regular Washington ESD unemployment doesn't cover contractors.

Oh wow I had no idea it ended. So we're back to the old rules then.

Yeah, all my income has been 1099s. Sounds like I'm out of luck then.

You might want to look into whether you were properly classified though. Some companies misclassify employees as contractors to avoid paying taxes and benefits.

That's good advice. I was too dependent on one major client. Lesson learned for next time.

It's tough when you have a good steady client to turn down other work, but diversification really helps in situations like this.

If you have recent W-2 wages that meet Washington ESD's minimum requirements, you might qualify for benefits based on that employment. The contractor income wouldn't count toward your benefit calculation though.

Good to know! I worked part-time at a coffee shop last year while building my freelance business.

That could be worker misclassification. Washington has specific criteria for determining if someone should be classified as an employee. You might want to file a complaint with the Department of Labor & Industries.

I had no idea you could file a complaint about that. I'll look into it.

What other options did you end up finding? I'm trying to figure out what to do while I look for new clients.

I looked into SNAP benefits for food assistance and applied for some local emergency assistance programs. Also had to dip into savings unfortunately.

I'm starting to think my situation was pretty clearly contractor work since I set my own hours and used my own equipment. But I'll still ask to be sure.

Yeah those are definitely contractor indicators. Employee classification usually requires more control by the employer over how and when you work.

That's why it's important to save more aggressively as a contractor. I try to put away 30% of every payment for taxes and emergencies.

30% seems like so much but I guess it makes sense if you don't have unemployment to fall back on

In my case I worked from home, set my own deadlines, and used my own computer and software. Sounds like legitimate contractor work.

Yeah, that does sound like proper contractor classification. The line can be blurry sometimes but your situation seems clear cut.

How do you get an official determination? Do you have to file some kind of form?

You can request a coverage determination from Washington ESD. There's a form you fill out describing the work relationship and they'll make an official ruling.

That's a good point about local assistance programs. I should look into what's available in my area.

211 is a good resource for finding local assistance programs. Just dial 2-1-1 and they can help you find what's available.

That's more of a tax strategy. For unemployment purposes, if you own the LLC, you're generally considered self-employed and still wouldn't qualify for UI benefits in Washington.

Ah okay, that makes sense. I was confusing tax benefits with unemployment eligibility.

It's definitely something to plan for, but don't let it scare you away completely. Just make sure you have a good emergency fund before making the leap.

How much do you think is a good emergency fund for contractors? I've heard everything from 3 months to a year of expenses.

Yeah, I'm realizing now that I should have understood this better before I started contracting. Live and learn I guess.

Don't beat yourself up about it. A lot of people don't realize the implications until they're in your situation.

Thanks everyone for all the helpful information. Sounds like I need to focus on finding new clients and looking into other assistance options.

Good luck with the job search! The contractor life has its challenges but when you find good clients it can be really rewarding.