Home Improvement Contractor - Licensed Contractors
Does independent contractor wages count when determining unemployment eligibility?
I'm reading the eligibility requirements for KY Unemployment, and am a bit confused. It seems that benefits are based on the last 5 quarters of employment, excluding the current quarter. I started my job in July 2007, and got let go in June 2008 - this would count as 3 quarters, right? With the exception of a few independent contractor jobs (mystery shopping), I did not earn wages in from Jan-July 2007. Will I be denied eligibility? ** I did claim all independent contractor wages on my 2007 taxes
Public Comments
- No, sorry, self employment/independent contractor income isn't eligible income counted for unemployment. When you work as an employee, your employer pays an amount into8 the unemployment comp fund to cover you. You'll probably be eligible though, based on your job from 7/07 to 7/08 - if that was as an employee, it should be enough to make you eligible.
- You can only count the independent contractor earnings if you were paying into the unemployment scheme. That would not be automatic.
- Independent contractor and wages do not belong in the same sentence. Your employer may have misclassified you as an independent contractor to avoid paying unemployment tax, social security and medicare tax and workers compensation insurance. You should file your unemployment claim and explain the details of your last job. The state may reclassify your compensation as wages, bill your former employer for a large amount of back unemployment tax and increase your wage base.
- Income received as an independent contractor is not "wages" and does not count toward future eligibility for unemployment. July 2007 to June 2008 is 4 quarters. (July-September, October-December, January-March, April-June). The current quarter is July 2008-September 2008. The last 5 quarters include April 2007 to June 2008 and the 4 in which you worked. Most states require you to have worked in only two of the five quarters, not all 5. Not sure about KY. What you report on your taxes does not affect this. They base eligibility on what employers report to the state, not on what you report to the IRS.
