Unemployment Question - California

[Cinerbelle]

I have never received unemployment and as of yesterday I was supposed to be unemployed. Here is my issue. My company already paid me my final pay, vacation, bonus, etc... everything and I have 8 weeks of severance coming. I go on my marry way (very happy to be out of that office) and 3 hours later my bosses boss calls me to ask if I would be willing to come back for a month or two. Seems my biggest customer threw a fit and they want me back to give my replacement some more training (my company was bought out and my job was moved to PA.).

Here is my question: If the company brings me back as a "consultant" how do I claim unemployment at the end of the month or two. I read on the unemployment website that you have to have your last pay stub, etc. to file a claim. Since I would be a "consultant" my bosses boss said there would be no taxes, etc. taken out of the check... doesn't that mean that nothing would be paid into unemployment and they could deny me?

 

[Luv Bunnies]

I think you have to be very careful about consulting or doing temp work if you're on unemployment in California. You have to report any additional earnings each week when you send in your claim form (every two weeks). Any additional money you make will reduce your unemployment payment by a certain amount. My DH is on unemployment and makes $75 a week directing a chorus. He notes on his bi-weekly claim form that he earned $150 during the two week period and it basically comes off the top of his payment for that week. The chorus he directs treats him as a consultant and he gets a 1099 form from them each year for tax purposes. I would assume if you consult for a company, they would send in a 1099 for you and you will be required to report those earnings. You'll also be responsible for paying the income taxes on that money at the end of the year.

You'll probably want to run some numbers and see if it's worth your time to consult for the company. I think if it were me, I'd ask the company to keep me as an employee for the additional time and then file for unemployment when the job is really over.

I'm not an expert on this subject - I just know a little from my DH's situation. You can call the EDD and (eventually) you'll get a live person on the phone. They can answer these kinds of questions for you. Good luck!