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Mei Liu

Does 1099 get unemployment benefits in Washington ESD?

I've been working as a 1099 contractor for the past 8 months doing freelance graphic design work. My main client just cut my contract and I'm wondering if I can file for unemployment benefits through Washington ESD. I know regular employees can get UI but what about independent contractors? Has anyone dealt with this situation before?

Unfortunately, 1099 contractors typically don't qualify for regular unemployment insurance in Washington state. You need to have been classified as a W-2 employee with payroll taxes taken out to be eligible for UI benefits through Washington ESD.

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Mei Liu

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That's what I was afraid of. So there's really no safety net for contractors at all?

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Well, you might want to check if you were misclassified. Some companies illegally classify employees as contractors to avoid paying benefits.

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Amara Nwosu

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I had a similar situation last year. Washington ESD will only approve UI claims if you have covered wages from an employer who paid into the unemployment insurance system. 1099 work doesn't qualify because no UI taxes were withheld.

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Mei Liu

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Did you end up finding any other assistance programs? I'm really struggling to find new clients.

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Amara Nwosu

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You might qualify for other state assistance programs, but not unemployment specifically. Check with DSHS for food assistance or other support.

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AstroExplorer

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Actually, I tried calling Washington ESD about this exact question but couldn't get through to anyone. The phone system is absolutely terrible - I was on hold for 3 hours before getting disconnected. Has anyone found a way to actually talk to someone there?

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I found this service called Claimyr that helps you get through to Washington ESD agents. They basically call for you and get you connected. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that explains how it works.

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AstroExplorer

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Is that legit? Sounds too good to be true with how impossible it is to reach Washington ESD.

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Yeah it actually worked for me. I was able to get clarification on my claim status without spending my whole day on hold.

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The key factor is whether you had any W-2 employment during your base period. Washington ESD looks at the first four of the last five completed calendar quarters before you file your claim. If you had ANY covered employment during that time, you might still qualify even if your most recent work was 1099.

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Mei Liu

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I did have a part-time W-2 job about 10 months ago for about 3 months. Would that count?

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Possibly! You need to have earned at least $3,719 during your base period from covered employment. That part-time job might be enough if you earned enough wages.

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Mei Liu

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I made about $4,200 from that job. So I should definitely apply then?

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Dylan Cooper

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wait so if you have SOME w2 income you can still get unemployment even if you lost 1099 work?? that doesnt seem right

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You have to be unemployed through no fault of your own and able and available for work. The 1099 work ending doesn't directly qualify you, but if you're now unemployed and meet the wage requirements from your W-2 job, you could be eligible.

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Sofia Perez

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This is getting confusing. Maybe OP should just apply and let Washington ESD determine eligibility rather than trying to figure it out here.

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I'm a 1099 contractor too and this whole system is frustrating. We pay self-employment taxes but get none of the benefits that regular employees get. It's totally unfair.

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Mei Liu

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Exactly! We're essentially running small businesses but with none of the safety nets.

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That's the trade-off for being your own boss and setting your own rates though. Can't have it both ways.

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Easy to say when you have a steady paycheck and benefits. Not everyone chooses to be a contractor - sometimes it's the only work available.

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OP, here's what I'd recommend: First, gather all your wage information from both W-2 and 1099 work. Then apply online through the Washington ESD website. The worst they can say is no, and if you do qualify based on your W-2 wages, you'll get benefits. The application process will walk you through the eligibility requirements.

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Mei Liu

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That makes sense. I'll start gathering my tax documents and wage statements. How long does the application process usually take?

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Initial application is pretty quick online, but processing can take 2-3 weeks if there are no issues. Given your mixed employment situation, it might take longer for them to review.

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Ava Johnson

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Just want to add that if you do qualify and start collecting, you'll need to report any 1099 income you earn while on unemployment. Even small freelance jobs need to be reported on your weekly claims.

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Mei Liu

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Good point. I was hoping to pick up some small projects while looking for steady work. How does that affect benefits?

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Ava Johnson

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You can earn up to your weekly benefit amount minus $5 without losing benefits. Anything over that reduces your weekly payment dollar for dollar.

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Miguel Diaz

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Don't forget about the job search requirements too. If you do get approved, you'll need to do job search activities and register with WorkSourceWA. Make sure you're looking for W-2 employment, not just more contract work.

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Mei Liu

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That's actually what I want anyway - more stable employment with benefits. The freelance life is too unpredictable.

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Zainab Ahmed

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WorkSourceWA has some good resources for people transitioning from contract work to traditional employment. Worth checking out even if you don't qualify for UI.

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Connor Byrne

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I was in a similar boat but found out I was actually misclassified as a 1099 when I should have been a W-2 employee. If your client controlled your hours, provided equipment, or treated you like an employee, you might have grounds for a misclassification claim.

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Mei Liu

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They did set my deadlines and I had to use their design software. How do you prove misclassification?

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Connor Byrne

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You can file a worker classification determination request with Washington ESD. If they rule you were misclassified, your employer would owe back taxes and you could qualify for benefits.

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Yara Abboud

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That's a longer process though and might burn bridges with the client. Sometimes it's not worth the fight.

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PixelPioneer

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Bottom line - apply anyway. I thought I wouldn't qualify because of weird employment situations but Washington ESD surprised me. The online application takes like 20 minutes and they'll tell you if you're eligible.

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Mei Liu

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You're right, I'm overthinking this. I'll just apply and see what happens. Thanks everyone for the advice!

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Make sure to file quickly too. There's usually a waiting period and benefits don't start until after you file, so don't delay.

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