WWYD - Quit or get paid under the table?

[EllenFrasier]

Well my life has more twists than a pretzel lately, and my boss just added some more!
I work for a pet sitting business. Mostly mid-day visits for folks who are at work, but some vacationers too. I've been working for this woman for almost 6 years. We've had our ups and downs and disagreements on schedules, days off, etc. I don't get paid for any days off or sick days - which incidentally, I have never called in sick. There is the business owner who still does limited pet sitting (she has two small children now), another woman who did weekends and evenings and is quitting right after Christmas, and myself. After learning that the other person is quitting, my boss informed me today that she is thinking of scaling the business back to just mid-day visits and occasional cat vacationers. Basically, she was telling me that she was laying me off. She said she would lay me off and asked me if I would still do jobs under the table while I was collecting unemployment. T-w-i-s-t!!! That is what my insides did as she was telling me this. I'm pretty sure it is illegal to collect unemployment and get paid under the table - right? I also know that many people probably do it, but that doesn't make it right.
I have a couple options here:
1. I can let her lay me off and collect unemployment and get paid under the table to do occasional jobs.
2. I can get laid off and collect unemployment and not do any jobs while I look for another job or figure out what I am going to do.
3. I can contact all of the clients that I have been pet sitting for through her business and let them know that I am leaving her employment but would like to continue visiting with their dogs. I wouldn't charge as much money as she does because I do not get the full payment from the clients anyway.
4. I could open my own pet sitting business, still taking some of the clients with me if they wanted to stay with me. This would probably entail insurances of some type, getting bonded, setting up business accounts, working morning, noon, night, weekends, holidays, etc. My daughter has a full time job, but she has expressed interest in working for me if I did this.

Guess that's all the options I've come up with so far. My heart is breaking as I have grown so attached to these dogs that it's like they are my pets too. Now I won't be seeing them anymore. Not to mention that this is a very bad time of year to be out of a job - just spent oodles on Christmas gifts for the kiddies. Just experienced a large vet bill for my goldie to get an emergency operation. Just not a good time for this kind of news.

I am just thinking out loud here with the post, but I would appreciate some input - I need all the suggestions I can get!

 

[clh2]

Would there be anything wrong with starting up your new "pet-sitting" business while you are collecting unemployment?

Can you "quickly" print up business cards to hand out? YES - you can - Avery makes "printable" business cards, and they have easy to use templates on their website.

Go for it!

 

[PrincessMama605]

I agree with the pp, I don't see anything wrong with starting up your own business and handing out cards to the clients you see at your current job. I wouldn't consider it "poaching" because your boss has said she will be scaling back and her current clients might want someone who is available outside her new hours.

ETA: Also, IMO collecting unemployment while getting paid under the table is a bad idea (not to mention illegal) and your boss is completely unethical for suggesting that you should.

 

[Jeff_G]

I would do option #3, I would also call your state unemployment office and ask them about starting your business while collecting unemployment, see what they say.

 

[mrsklamc]

If she is scaling back she should have no problem with you taking clients on. I don't think you should even consider taking payment under the table- jail ain't worth it.

 

[akcire]

Is this a full time job?

Depending on your state, you may be able to collect unemployment on the reduced hours you work. OR You may also be able to collect unemployment and work a small part time job without a reduction in benefits.

My neighbor has been unemployeed with full Illinois unemployment benefits for nearly 2 years and he has been working as needed at Kohls up to 12 hours a week without any reduction in his benefits. He reports his earnings, it just is not enough for the state to reduce his unemployment based on his family size.

I would probably figure out what you needed to start a business.

 

[Leajess99]

I would NOT work under the table. If you get caught it can get ugly plus if you get hurt while doing it than you have no recourse against the employer.

I would think that just pet sitting or dog walking would not be a big deal to do if you are not operating it as a real business. People babysit for others while on unemployment but they aren't opening as daycares. I would offer the option to the dogs/cats you want to keep.

 

[scbelleatheart]

Is this a full time job?

Depending on your state, you may be able to collect unemployment on the reduced hours you work. OR You may also be able to collect unemployment and work a small part time job without a reduction in benefits.

My neighbor has been unemployeed with full Illinois unemployment benefits for nearly 2 years and he has been working as needed at Kohls up to 12 hours a week without any reduction in his benefits. He reports his earnings, it just is not enough for the state to reduce his unemployment based on his family size.

I would probably figure out what you needed to start a business.

This is very good advice! If it was not full time you may not even be eligible for unemployment, depending on the state. Do not go under the table. Starting up a business is vey difficult but if you already have clients it may be worth the trouble. In our state, services are taxed so you have to report income from the business and pay sales tax (collected from customers) each month.
Good Luck!

 

[happygirl]

I would NOT work under the table. If you get caught it can get ugly plus if you get hurt while doing it than you have no recourse against the employer.

I would think that just pet sitting or dog walking would not be a big deal to do if you are not operating it as a real business. People babysit for others while on unemployment but they aren't opening as daycares. I would offer the option to the dogs/cats you want to keep.

I agree with this

 

[neatokimmo]

In Tn you can earn a little every week and still collect unemployment.

 

[CowboyCO]

Would there be anything wrong with starting up your new "pet-sitting" business while you are collecting unemployment?

Can you "quickly" print up business cards to hand out? YES - you can - Avery makes "printable" business cards, and they have easy to use templates on their website.

Go for it!

You can collect unemployment while starting a business as a long as what you make doesn't exceed moe than 1/2 of your UI benefit.

 

[happily single]

You can work and collect unemployment....but I have a sneaky suspicion that she wants to pay you "under the table" so that you won't try to collect unempoyment.

RIght now I am working part-time and collecting unemployment. As long as I make less at my job than I am collecting there is no problem. Every week I report my earnings and my unemployment is reduced (but not by the entire amount I made at the job)

I highly recomend NOT working under the table dog-sitting. It may not happen, but IF something happens such as a dog attack, or something ends up missing in a clien'ts home you have no recourse..

 

[mistysue]

Getting paid under the table is illegal whether or not you get unemployment- both for you and the employer. It isn't illegal if you report the income on your taxes, but your tax rate on that income will be higher because normally your employer has to pay part of your taxes. (they match SS and medicare)

Look online or ask somebody at the unemployment agency in your state about the specifics of working part time or starting a business while collecting. In MI we can collect if working, but they deduct part of the wages from your payment and each week counts a two weeks toward your claim (claims are then limited to 26 weeks/year)

 

[Califgirl]

I guess I'm in the minority, but I think #3 is completely unethical. Well, I guess #4 is too.
Just my opinion.

Why don't you tell her that since she is thinking about cutting back, you would like to take the rest in as clients and start your own business. Maybe she'd help make the transition easier. Also, maybe she's cutting back because it's difficult for her to make it finacially. If that's the case, charging less may not be helpful to you. Also, if you do go into this as a business, make sure you have the proper insurances and business license. You could lose alot with one mishap.

Undercutting her and stealing her clients because she is letting you go is just .. wrong. Talk to her.

 

[lizabu]

Make up the business cards and put them out and contact your local unemployment office to see what services they have. They have services where I live that include classes on how to start a small business, how to write a business plan and even start up loans available to people collecting employment insurance. You can earn up to a certain amount and report it and not see any decrease in your benefits so if you start up small you will have the EI coming in and a few clients. Eventually once you have enough clients you won't need the EI at all

 

[NYCDiane]

Your state's Dept of Labor may have classes for people looking to start up their own small business.

I don't think you would lose any u/e benefits while trying to start up your new biz so long as you're not making any $$ yet.

Do NOT work "under the table" for her. First, it's illegal. Second, if u/e finds out, you will have to pay back any benefits you got for the days you were working. Third, she could easily use it against you. I know in NY, if you're on u/e and even if you work only 1 hour, you will lose your benefits for the entire day.

Be careful about handing out your card to her current clients. She WILL find out and it will cause a huge problem between the two of you. I think you should ask her that, since she's scaling back, you're thinking of opening your own pet sitting/pet walking/pet visit business and would she mind if you picked up some of her former clients since she'll be dropping them. She will probably get huffy about it but at least you gave her an opportunity to be a good person and help you start your biz.

Good luck and let us know how it works out!!!

 

[SandrA9810]

What if you ask to "split" the business with her. Take on the clients you regularly see, and she takes care of the others. Sorta become her partner rather than going under. Then you'd still be protected with all the insurance and such, and still have the established name. Then if you see fit of your half, hire another worker to take over weekends and evening sittings.

 

[mjbaby]

I would do option #3, I would also call your state unemployment office and ask them about starting your business while collecting unemployment, see what they say.

Agreed. In some states one can start a business while on unemployment and in some states it's illegal. Of course, people don't always follow the law precisely in these matters, but it's a good idea to find out what it says before making any decisions.

 

[plummer925]

Most states have a thing in their unemployment that they will help you start a small business...for instance, here in Maine, you still collect your FULL money (no matter HOW much you make on your new business!) but you have to document 40 hours a week into your business and attend small business classes (I think it's 2 or 3 for the entire time). My husband did that. VERY VERY easy to document the time - time emailing, on phone, and even driving to clients (and to the classes!!!) count. You have to register for it, fill out tons of paperwork, and get approved. It's a sweet deal. Hubby was able to collect his 26 weeks of unemployment, focus exclusively on his business and get it up and running. You should look to see if your state offers it!!

 

[RitaE]

I would set up my own business and then offer to buy-out part of her client list as a referral fee - 15% of your revenue from her former clients for the next 24 months or whatever you decide is fair.

I probably wouldn't give the clients a cheaper rate. You are going to have your own business expenses, including having to pay both ends of the employment tax since you will be self-employed.