Will a W9 affect my Washington ESD unemployment benefits?

A W9 by itself won't affect your benefits - it's just for tax purposes. The issue is when you actually start earning money from that work. You'll need to report any income when you file your weekly claims.

So I can sign the W9 without reporting it to Washington ESD yet?

Correct. The W9 is just setting up the paperwork. Report when you actually earn money.

Be really careful about this! I did some 1099 work while on unemployment and it got complicated fast. Make sure you understand the difference between employee vs contractor work.

What kind of complications did you run into?

They wanted to know if I was 'available for work' when I was doing contract stuff. Had to prove I was still job searching.

I had this exact situation last year! The W9 itself doesn't matter to Washington ESD. What matters is when you start working and earning. Just make sure to report ALL income on your weekly claims, even small amounts.

Did you have any issues with your claim when you started the freelance work?

No issues as long as I reported everything honestly. Washington ESD allows you to work part-time and still collect partial benefits.

This is good to know. I've been avoiding any side work because I was scared it would disqualify me completely.

Here's what you need to know: signing a W9 establishes you as an independent contractor for tax purposes. Washington ESD doesn't care about the form itself. However, once you start working, you must report gross earnings in the week you perform the work, not when you get paid. This is different from W2 employment where you report when paid.

Wait, so I report the income the week I do the work even if I don't get paid until later?

Exactly. For 1099 work, you report earnings when the work is performed. Keep detailed records of when you work and how much you earn.

This is confusing. I thought you only report when money hits your bank account?

That's only for W2 wages. 1099 contractor work follows different rules - report when work is done.

ugh the whole reporting thing is so stressful! I've been trying to call Washington ESD for weeks to ask about this exact thing but can never get through. Anyone have tips for actually reaching someone?

I know that frustration! I actually found this service called Claimyr that helped me get through to Washington ESD. You can check them out at claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

Really? How does that work exactly?

They basically help you navigate the phone system and get connected to an actual agent. Saved me hours of calling and getting disconnected.

Just be honest about everything. I made the mistake of not reporting small amounts thinking they wouldn't matter. Got an overpayment notice months later.

How small are we talking? Like under $100?

I was skipping amounts under $50. Big mistake - they found out during a wage audit and I owed back benefits plus penalties.

This is exactly why I report everything, even $20 jobs. Not worth the risk.

The real question is whether this freelance work will affect your job search requirements. You still have to be actively looking for full-time work even if you're doing contract stuff.

Good point. The freelance work is just a few hours a week, so I'm definitely still looking for full-time employment.

That should be fine then. Just make sure you can document your job search activities if asked.

I'm dealing with something similar right now. Started doing some Uber driving while collecting unemployment. The 1099 reporting is a pain but doable.

How do you calculate what to report for gig work like that?

I report gross earnings before expenses. So if I made $100 driving but spent $20 on gas, I report the full $100.

Wait really? I thought you could deduct expenses first?

Nope, Washington ESD wants gross earnings. The expense deductions are for tax purposes later.

Another thing to consider - if this freelance work turns into regular hours, it might affect your availability status. Washington ESD requires you to be available for full-time work.

The freelance work is pretty flexible timing-wise, so I think I'd still be available for interviews and full-time work.

That's good. Just be prepared to explain this if they ever question your availability during an adjudication review.

Pro tip: keep really detailed records of all your freelance work. Date, hours worked, amount earned, and what type of work. You'll thank yourself later if questions come up.

Good advice. I'll start a spreadsheet before I even begin the work.

Smart move. Also save any emails or contracts related to the work. Documentation is everything with Washington ESD.

I hate how complicated they make this stuff. Why can't Washington ESD just have clear guidelines about freelance work posted somewhere easy to find?

Right?? I spent forever digging through their website trying to find this info.

And don't even get me started on trying to call them for clarification. Impossible to get through.

One more thing - make sure the freelance work doesn't push you over the earnings limit for your benefit week. If you earn too much, you might not get any unemployment for that week.

What's the earnings limit? Is it based on my weekly benefit amount?

It's calculated based on your weekly benefit amount. If you earn more than 1.5 times your weekly benefit, you get no unemployment that week.

Actually I think the formula changed recently. Better to check the current Washington ESD handbook for the exact calculation.

Bottom line: sign the W9 if you want the work, but be prepared to report everything accurately once you start earning. The paperwork isn't the problem - it's staying compliant with reporting requirements.

Thanks everyone! This has been really helpful. I feel much more confident about moving forward with the freelance opportunity.

Glad this thread helped! Always better to ask questions upfront than deal with problems later.

Just wanted to add - if you end up having trouble reaching Washington ESD about any of this stuff, I also had success with that Claimyr service someone mentioned earlier. Really helped when I needed to discuss my specific situation with an agent.

Good to know there are options for getting through to them. I'll keep that in mind if I run into issues.

One last thought - consider how this freelance work fits into your overall career goals. Sometimes taking on contract work can actually help with networking and finding full-time opportunities.

That's a great point. This could definitely lead to other opportunities in my field.

Exactly! Just make sure you're still meeting all the job search requirements while you're doing it.

This thread has been super informative! I'm in a similar boat - got offered some consulting work but was terrified to take it because of my unemployment benefits. Now I understand that signing the W9 is just paperwork, and the key is accurate reporting once I actually start working. The distinction between reporting when work is performed vs when paid for 1099 work is crucial - I had no idea about that difference. Going to bookmark this thread for reference when I start my freelance gig!