Started freelance job (40hrs/week) - still need to file weekly ESD claim?
I just started a 6-month freelance contract position on Monday and worked a full 40-hour week. I'm still technically on an active unemployment claim with ESD, though. Do I still need to file my weekly claim? If yes, what do I report differently now that I'm working full-time as a contractor rather than a regular employee? I'm confused about how to handle self-employment income on the weekly claim form. Will this automatically close my claim or should I be doing something specific to notify ESD that I've found work? Thanks for any guidance!
12 comments
Dominique Adams
Yes, you should absolutely file your weekly claim! When you do, you'll need to report that you worked and earned income. ESD requires you to report ALL earnings for the week they were earned (not when paid). Since you worked 40 hours, you'll need to report those hours and the gross amount earned before any taxes or deductions. Since you're working full-time hours now, you'll likely receive $0 in benefits for the week, but filing properly closes things out correctly in their system. Make sure to answer "yes" to the question about whether you worked, then enter your hours and earnings. The system will automatically determine that you're not eligible for that week.
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Isabel Vega
•Thanks for the quick response! So I need to report the gross amount even though I haven't actually been paid yet? My first payment won't come until the end of the month, but I should still report what I will be earning for these hours?
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Marilyn Dixon
Just to add some clarity - for freelance/contract work, you report earnings in the week you EARN them, not when you get paid. So even if you don't receive payment until later, you need to report the hours and amount you'll be receiving for this week's work. Also, keep in mind that since you're working 40 hours, this will make you ineligible for benefits that week. After 4 consecutive weeks of reporting full-time work, your claim will automatically go inactive. You don't need to call ESD to formally close your claim - just keep filing accurately each week until it automatically closes.
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Louisa Ramirez
•This isn't totally right... I had a similar situation and ESD told me that i only had to report earnings once i ACTUALLY got paid for the freelance work! it's different from regular w2 work. the agent told me it works this way because freelancers don't always know exactly what they'll earn until they get paid. this whole system is so CONFUSING!!!
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Dominique Adams
I've been through this exact scenario and @profile5 is incorrect. For unemployment purposes, ESD specifically requires you to report earnings when EARNED, regardless of payment type. This is directly from their handbook. For freelance/contractor work, you should estimate your earnings if you don't know the exact amount yet. When you file, use your hourly rate × 40 hours to calculate your gross earnings for the week. If the actual payment ends up being different, you can contact ESD to make a correction after you receive payment.
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TommyKapitz
i was in ur same boat last year. just make sure u answer honestly when they ask if ur still looking for work. cuz technically ur not if u got a 6-month contract. that full-time status is what matters for ur claim not whether ur freelance or w2. good luck!
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Angel Campbell
Hey there! If you're struggling to get through to an ESD agent to discuss this specific situation (which I recommend since freelance can be complicated), I had good luck using Claimyr when I needed to talk to someone about my contractor situation. The service connected me to an ESD agent within 20 minutes when I'd been trying for days on my own. They have a demo video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 and their website is claimyr.com. The agent I spoke with was super helpful in explaining exactly how to report my contractor earnings properly.
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Isabel Vega
•Thanks, I might check that out. I've tried calling a few times but keep getting the automated message about high call volume and then it hangs up. I'm worried about making a mistake with reporting since this is a somewhat complicated situation.
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Payton Black
this happened to me to. I think you file for one more week and say you worked and then stop filing. Also the ESD webite says you HAVE to report earnings in the week you WORKED, not when you got the money, that's the rule.
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Marilyn Dixon
Here's the exact process you should follow: 1. File your weekly claim as normal 2. Answer "yes" to the question about working or earnings 3. Enter 40 for hours worked 4. Enter your best estimate of gross earnings before deductions 5. For the "looking for work" question - technically since this is a temporary contract position, you could still be seeking permanent work, so this is a judgment call based on your situation After filing with full-time hours for 4 consecutive weeks, your claim will go inactive. However, if your contract ends before the benefit year expires, you can restart your claim without filing a new application (as long as it's within the same benefit year). If you have documentation confirming the contract and payment terms, keep that handy in case ESD has questions later.
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Isabel Vega
•Thank you for these detailed steps! This makes it much clearer what I need to do. I do have a contract that spells out the payment terms, so I'll keep that documentation just in case. Really appreciate all the helpful advice from everyone.
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Harold Oh
My sister got in trouble for not reporting her freelance work right away so definitely file your claim and report the hours! Better to report and get $0 than have them come after you later about it. ESD is serious about this stuff.
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