A question about collecting unemployment and working a short term "project" at work

[les26]

I have no idea how this works so I'll put it out there and hope someone knows, I was laid off 3/27 and was told I'd be called back when this mess is over, filed for unemployment 3/29, was off two days when the boss called and said "I have a proposition for you, we have a project that should take about a week, we can pay you and you can still claim unemployment are you interested?" and I was so bored at home and happy that I just said "I'm there", went in and worked Wednesday, Thursday and Friday last week and will go back in tomorrow for a few days to maybe a week at most if that. It is not my "real" job there, it is a project that they need to get done fairly quickly. A woman I work with who was supposed to come in tomorrow to do it changed her mind, I talked to her yesterday on the phone and she said she called and told them "I don't want to mess up my unemployment" but her husband is not doing well and I said to her "plus you don't want to take any sickness home" as that would do him in and she said "exactly" so that might be the real reasoning behind it but that is moot, I am wondering how I can do this and keep it legal and not wrestle with it mentally as I am an honest guy? I believe they are planning on just writing me a check for my normal hourly wage times how many hours I worked without taking any taxes out, it is not a lot of money trust me, but is this something that is wrong to do? And if I don't claim these dates worked when I finally do claim unemployment they'll question that and that might screw things up there? Maybe they could write me a few smaller checks as I know you CAN work will collecting unemployment but I can hear them saying "it's this lump sum check or nothing", so any advice would be appreciated. I know most people would tell me I'm crazy for worrying about it, it's a short time project and not a lot of money they'd say "just take it" and again it is for the same company but is not my regular job.

Thank you

 

[Jem]

As far as I know, at least where I am, you can keep your unemployment claim open and still work. You just fill in what your earnings were for that reporting week and they will simply deduct from your pay. When the project is done and you are not earning anything you'll get your unemployment pay again.
Do you have to report every week or every two weeks?

 

[les26]

As far as I know, at least where I am, you can keep your unemployment claim open and still work. You just fill in what your earnings were for that reporting week and they will simply deduct from your pay. When the project is done and you are not earning anything you'll get your unemployment pay again.
Do you have to report every week or every two weeks?

It's every two weeks. I just also saw that you CAN work in PA. if it is not more than 35 hours a week, and last week I worked only 23. What about if I told them this coming week don't give me more than 30 hours? The project might be done before that anyway. Do I have to report anything if that is the case?

 

[susanm9006]

Jen is correct. It’s not your regular job, just some extra work but you must tell unemployment about it. It may not even stop your payment depending on how much you get paid in comparison to your regular wages. You always want to report everything to unemployment. They are usually good at finding out if you don’t.

 

[Jem]

OK, this the first time I've ever been on EI as well, so I'm not an expert....
But I was officially laid off March 17th (Tuesday). That is when the decision was made that we had to close. But I did work on the Monday (16th) of that week. I put in 4 hours with earnings of $130 before taxes.
So I applied for EI during that week I was off, I think it was Thursday when I finally got thru...the system was overloaded. Then I had to wait and I got a "code" in the mail, so I could file my bi-weekly reports. I do them online, it's pretty easy.
The report periods are from Sunday to Saturday. So for my first week off work (Mar 15th to 21st), I had to include that I worked 4 hours and earned 130 before taxes, but for the following week, I entered 0. My next reporting period was due on April 4th so I went back on-line, and reported that I earned nothing. My next report is due on April 18th.
You need to honest about the hours worked in the given week as well as the earnings before taxes for that week. They'll find out, and the penalties are not worth it.
So if you worked 23 hours for your first week, put 23 and the amount earned before taxes. Then for the second week of the period, put zero, unless you end up working again. You have to report at the end of the week, after you've worked so you should know the hours worked and earnings in any given week. If you end up working and earning more than whats allowed, be honest. As far as I know, you'll still have an open claim, you just won't get anything if you exceed the allowable earnings in that week.

 

[Jem]

Maybe they could write me a few smaller checks as I know you CAN work will collecting unemployment but I can hear them saying "it's this lump sum check or nothing", so any advice would be appreciated.

I don't think it matters HOW you get PAID. What matters is how many hours in a given week you worked and how much you earned in a given week. If you're employer decides to give you a lump sum pay check when all is said and done, I don't think really matters. You still only worked "said amount" for "said amount" in each given week. What matters is what happens in the reporting period, not when or how your employer gives you a check.
Now keep in mind, that if your employer decides to pay you without deductions, that will come back at you at tax time, so be sure you claim it properly at income tax time so you don't get penalized for withholding income earnings.

 

[Jem]

I believe they are planning on just writing me a check for my normal hourly wage times how many hours I worked without taking any taxes out, it is not a lot of money trust me, but is this something that is wrong to do?

Now keep in mind, that if your employer decides to pay you without deductions, that will come back at you at tax time, so be sure you claim it properly at income tax time so you don't get penalized for withholding income earnings.

Just to clarify....When reporting, (at least for me), I have to report earnings BEFORE tax anyway, so if they decide to cut you a check without deductions, it doesn't matter when it comes to EI. But it will matter a Tax time...

Am I explaining myself OK???????

 

[les26]

OK, this the first time I've ever been on EI as well, so I'm not an expert....
But I was officially laid off March 17th (Tuesday). That is when the decision was made that we had to close. But I did work on the Monday (16th) of that week. I put in 4 hours with earnings of $130 before taxes.
So I applied for EI during that week I was off, I think it was Thursday when I finally got thru...the system was overloaded. Then I had to wait and I got a "code" in the mail, so I could file my bi-weekly reports. I do them online, it's pretty easy.
The report periods are from Sunday to Saturday. So for my first week off work (Mar 15th to 21st), I had to include that I worked 4 hours and earned 130 before taxes, but for the following week, I entered 0. My next reporting period was due on April 4th so I went back on-line, and reported that I earned nothing. My next report is due on April 18th.
You need to honest about the hours worked in the given week as well as the earnings before taxes for that week. They'll find out, and the penalties are not worth it.
So if you worked 23 hours for your first week, put 23 and the amount earned before taxes. Then for the second week of the period, put zero, unless you end up working again. You have to report at the end of the week, after you've worked so you should know the hours worked and earnings in any given week. If you end up working and earning more than whats allowed, be honest. As far as I know, you'll still have an open claim, you just won't get anything if you exceed the allowable earnings in that week.

I can understand this part, thanks. But what about this part, I don't think my employer is going to report this and they aren't going to take any taxes out, they just want to give me payment, so if I do report this to unemployment will my employer get in trouble? I don't want any issues with them as well as any issues with unemployment?! I know I don't report the couple hundred bucks we get for Christmas bonus, none of us do, we just get a check with our name and the amount from the employer and I am thinking this would be the same way?

 

[les26]

Just to clarify....When reporting, (at least for me), I have to report earnings BEFORE tax anyway, so if they decide to cut you a check without deductions, it doesn't matter when it comes to EI. But it will matter a Tax time...

Am I explaining myself OK???????

Please read post #8, we must've posted at the same time lol!

 

[Jem]

so if I do report this to unemployment will my employer get in trouble?

I guess they MIGHT, if they ever get audited and attempted to claim your earnings as payroll on their business taxes. But even still, you're the one who loses out in the end if they report it and you do not.
But if they are paying you as an "independent contractor" for this project, you have to claim it on EI and claim it on your taxes. They will have it the system as paying you as an independent contractor, so they would be able to claim it on their taxes as "paying for a service" of sorts, without having to do any deductions...because as I said...in the end it is up to an individual to be truthful about earnings.

 

[Jem]

Keep in mind, I am making assumptions about your employer....IF it were me, I would be paying you as an independent contractor for this project, as it is not your "regular" job, without having to do deductions OR I would simply pay you your usual wage with deductions.
IF your employer is going to cut you a check without deductions...they SHOULD be smart enough to have you in "the system" as an independent contractor, for this project, therefor, they should not get in trouble when you report your earnings.

 

[les26]

I guess they MIGHT, if they ever get audited and attempted to claim your earnings as payroll on their business taxes. But even still, you're the one who loses out in the end if they report it and you do not.
But if they are paying you as an "independent contractor" for this project, you have to claim it on EI and claim it on your taxes. They will have it the system as paying you as an independent contractor, so they would be able to claim it on their taxes as "paying for a service" of sorts, without having to do any deductions...because as I said...in the end it is up to an individual to be truthful about earnings.

Okay thanks, this is all so confusing to me! I'll talk to them tomorrow and also talk to a woman in real estate who does their payroll, the person who does our payroll is working from home plus I could see her saying something out of context to them and making things worse, she is sometimes like that and I don't need anyone upset with me least of all my employer! This other woman is more sensible.

Thank you

 

[les26]

Keep in mind, I am making assumptions about your employer....IF it were me, I would be paying you as an independent contractor for this project, as it is not your "regular" job, without having to do deductions OR I would simply pay you your usual wage with deductions.
IF your employer is going to cut you a check without deductions...they SHOULD be smart enough to have you in "the system" as an independent contractor, for this project, therefor, they should not get in trouble when you report your earnings.

Read this after my last post, I would bet they would just write me a check without any deductions.

 

[Jem]

Read this after my last post, I would bet they would just write me a check without any deductions.

I got it. I just wanted you to understand that first and foremost you need to protect yourself, regardless of how your employer decides to pay you. I know you're just being nice and concerned and don't want to stir the pot. But IMO, YOU are more important!
Businesses have ways to hide and conceal how they spend their money. But you don't have a way to hide and conceal your earnings.
Unless, your planning on meeting your employer behind the dumpster of a back alley where they hand you an envelop of cash and you stash it under you mattress....

 

[les26]

I also might be jumping the gun here, maybe they DO expect me to claim this? I'll find out.....all I know is that one of the bosses last Wednesday said to just keep record of my hours worked on a hand written time card like I always do?! I'll find out....

 

[les26]

Well I won't be able to discuss this with them at work today, about 3 minutes before I was ready to leave the boss called and said "we won't be needing you to come in today, our system was hacked, don't come in until we call you"!

But the guy who is directing me on this project is our IT guy so I guess they don't want me in there making his work back up which makes sense.

 

[les26]

Got my PIN number today so that is a load off my mind!!!

 

[les26]

Well I guess the project is over, they haven't called me back since calling me Monday morning telling me not to come in because the computer system was hacked, so I emailed them and just asked them to please turn my time card in and they said they did, so I just won't say that I worked those days when I file my first unemployment claim Sunday. I don't know what is going on there, maybe they decided to scrap the project I don't know, and I'm not going to push it asking any questions, at least I got to work 3 days and that was good for me mentally so it's all good!

Thanks, it makes sense to me now, don't know why it was so confusing to me initially?!

 

[Kieka]

Just make sure you report what you did work with unemployment. I know a few people who thought they could just not claim the few hours they worked and ended up having to pay back money. Not fun.

 

[les26]

Just make sure you report what you did work with unemployment. I know a few people who thought they could just not claim the few hours they worked and ended up having to pay back money. Not fun.

No I have to claim the 23 hours worked, not worth trying to get paid "double" and maybe get caught and pay the price plus I couldn't do it with a clear honest conscience!