Can I take 1099 work if I am receiving unemployment in NJ?

December 8, 2009 11:45 AM

Can I take 1099 work if I am receiving unemployment in NJ?

Can I take 1099 work if I am receiving unemployment in NJ?

I am getting umemployment in NJ. I am in the IT field. I come across projects ranging from week to couple of months. My concern is can I take these projects? I know cash is ok but these pay 1099. I am a bit scared to move forward on these projects because after for example a week project I do not want to be left out of unemployment insurance. Do I have to tell unemployment? If i tell them do they stop and resume?

Please advise...

posted by minsid to Work & Money (4 answers total)

All of your questions can be answered by this document, which you may already have received in the mail. Note that 1099 work won't count toward future claims of unemployment.

PART‑TIME WORK
If you are working part‑time you may still be able to collect all or
part of your unemployment benefits.

* You must report all gross earnings and all hours worked,
including holiday/vacation pay, tips, commissions, or
earnings from self-employment. Report your gross earnings
and hours worked for the week in which they were earned,
not when they are paid.

* You can earn up to 20% of your Weekly Benefit Rate (WBR)
and still receive a full unemployment check for that week.
For example if your WBR is $200, you can earn up to $40 (20%
of $200 is $40) and still receive your full WBR of $200.

* If it is determined that the wages you reported are
deductible, they will be subtracted from your Partial Benefit
Rate (PBR). The PBR is 20% higher than your WBR. You
cannot be paid more than your WBR.
For example if your WBR is $200, your PBR is $240 (20% higher
than $200). If you earn $50 during a week, you would receive
$190 in unemployment benefits ($240 - $50 = $190).

* To be eligible, you must not be employed for more than 80%
of the normal hours worked in the occupation (e.g., if a 40
hour week is common in your occupation, you may be able
to receive benefits if you work 32 hours or less).
posted by chesty_a_arthur at 12:04 PM on December 8, 2009

Also, needless to say, I am not a laywer. I am just a paster of PDFs into Web forms, is all.
posted by chesty_a_arthur at 12:05 PM on December 8, 2009

I have worked part time in WA State while receiving UI. I still filed my weekly claim, and the weeks I had income, they just gave me less UI for the week.

Telling UI that you're working and getting less $$ as a result is much better than trying to hide income from UI. I've had a couple friends try to hide side employment, and they've always gotten caught - which resulted in fines and in one case, the inability to claim UI for a while when they became unemployed again.

I would call the NJ UI office for more info.
posted by spinifex23 at 12:11 PM on December 8, 2009

You can receive continuous benefits - just be sure to report your 1099 income so they can adjust your weekly check if necessary (or face really annoying fines).
posted by WeekendJen at 12:55 PM on December 8, 2009