Reporting 1099 contract work on ESD weekly claim - out-of-state employer questions

congrats on the new gig! i had something similar happen last year. you definitely need to report both hours worked AND earnings in the week you WORK them, not when you get paid. That's super important!! ESD doesn't care about when the money hits your bank account

You need to report your work and earnings during the week you perform the work, regardless of when you receive payment. This is clearly stated in ESD's handbook and is a common point of confusion for independent contractors. When you file your weekly claim, you'll report the hours worked that week and the gross earnings before any deductions. For the employer information, you'll list yourself as self-employed and then provide the information about the company you're contracting with. Keep detailed records of all your hours worked and earnings for each week, as you may need to provide this information if ESD requests verification. Also remember that as a 1099 contractor, you'll need to set aside money for taxes since they won't be withheld from your payments. Depending on how many hours you work each week, your unemployment benefits may be reduced or eliminated for that week.

just be careful your not getting scammed, lots of fake job offers claiming to be contract work. make sure you actually talked to real people on the phone and stuff

To directly answer your question about partial unemployment: Yes, you can receive partial benefits while working part-time as a contractor, but it depends on how much you earn each week. Washington uses a formula where they deduct 75% of your earnings from your weekly benefit amount. For example, if your weekly benefit amount is $700 and you earn $500 in a week from your contract work: $500 × 75% = $375 $700 - $375 = $325 in partial unemployment benefits However, if your earnings exceed your weekly benefit amount, you won't receive benefits for that week but your claim remains open. You should continue filing weekly claims even during weeks you earn too much to receive benefits, as this keeps your claim active. For the employer question - you would select "self-employed" and then provide the company information. Make sure to track your mileage and business expenses for tax purposes as well.

To the question about minimum hours - it's based on earnings, not hours. You could work 30 hours at a lower pay rate and still qualify for some benefits, while 10 hours at a very high pay rate might disqualify you for that week. The 75% formula determines this, not the number of hours.

OMG trying to get through to ESD to ask these kinds of specific questions is IMPOSSIBLE!!! I've been trying for WEEKS to talk to someone about my part-time earnings and how they affect my claim. Always busy signals or they hang up on me saying call volume too high. SO FRUSTRATING!!!!!

i screwed this up last year and ended up with a $4700 overpayment notice because i only reported income when i got paid not when i did the work. dont make my mistake lol. the appeal process is a nightmare

One more important thing to note: make sure you're genuinely classified correctly as an independent contractor and not misclassified. True independent contractors have control over their work hours, methods, and typically work for multiple clients. If the company is controlling when and how you work and treating you like an employee but paying you as a contractor to avoid payroll taxes, that's misclassification. If you suspect you're misclassified, you can request a determination from ESD. This matters because misclassified workers may be eligible for more benefits than contractors in some cases.

dont forget you need to be looking for full time work even while doing contract stuff!!! esd still requires the 3 job search activities every week

Yes, that's correct. Unless you're specifically approved for standby status (which is rare these days), you must continue performing and documenting three job search activities each week regardless of part-time or contract work. The job search requirement is tied to receiving any amount of benefits, even partial benefits. Make sure to keep detailed records of all your job search activities in case of an audit.