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| Make Sure They Are Paying You W-2 Wages! |
If While On Unemployment You Get a Part-Time Job Paying You W-2 Wages, You May Still Be Entitled to Partial Unemployment Benefits in Pennsylvania
In order to understand all of the numbers, we have tried to break it down for you, as follows.
Start By Understanding Weekly Benefit Rate
Below are weekly benefit rates for
common salaries/yearly earnings:
$57,000 per year: $573 $50,000 per year: $502
$45,000 per year: $452
$40,000 per year: $402
$35,000 per year: $352
$30,000 per year: $302
$25,000 per year: $252
$20,000 per year: $202
$15,000 per year: $152
Then Figure Out Maximum Amount of Part-Time Benefits You Can Earn
If you are getting unemployment in
Pennsylvania, you can work at another job on a part-time basis (provided you are paid W-2 wages and not as a 1099 independent contractor) and still get
unemployment.
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| If You Are Doing This, You Are Likely an Independent Contractor, and May Be DQ'd From Getting UC Benefits |
$57,000 per year: $573/230
$50,000 per year: $502/201 $45,000 per year: $452/181
$40,000 per year: $402/141
$35,000 per year: $352/121
$30,000 per year: $302/101
$25,000 per year: $252/81
$20,000 per year: $202/61
$15,000 per year: $152/41
Even if you earn more than 40% of your weekly benefit rate in a part-time job, you can still get unemployment, at least up to a certain point. That certain point is when your part-time earnings, when added to your weekly benefit rate exceed your weekly benefit rate plus 40% of your weekly benefit rate.
Am I a Part-Time Employee or an Independent Contractor?
All of the principles discussed in this Post apply ONLY if you are being paid w-2 wages in your part-time position. If, however, you are being paid on a 1099 basis as an independent contractor, you will be deemed ineligible for unemployment benefits in Pennsylvania because you will be deemed to be self-employed.
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| Employers Are HIGHLY MOTIVATED to Misclassify Workers |
HERE
ARE SOME OTHER ARTICLES YOU MAY FIND WORTHWHILE:
How Much Can I Make as a Pert-time Worker Without Having My Pennsylvania Unemployment Benefits Reduced?
The below chart shows the maximum amount of part-time earnings you can earn while still being entitled to any partial unemployment compensation benefits in Pennsylvania (t make things clear, the below figures are weekly benefit rate/40% of weekly benefit rate/maximum part-time earnings allowed):
$45,000 per year: $452/181/ 633
$40,000 per year: $402/141/543
$35,000 per year: $352/121/473
$30,000 per year: $302/101/403
$25,000 per year: $252/81/333
$20,000 per year: $202/61/263
$15,000 per year: $152/41/193
The Tricky Part
The below chart shows the maximum amount of part-time earnings you can earn while still being entitled to any partial unemployment compensation benefits in Pennsylvania (t make things clear, the below figures are weekly benefit rate/40% of weekly benefit rate/maximum part-time earnings allowed):
$57,000 per year: $573/230/803
$50,000 per year: $502/201/703 $45,000 per year: $452/181/ 633
$40,000 per year: $402/141/543
$35,000 per year: $352/121/473
$30,000 per year: $302/101/403
$25,000 per year: $252/81/333
$20,000 per year: $202/61/263
$15,000 per year: $152/41/193
The Tricky Part
Once
your part-time earnings exceed 40% of your weekly benefit rate, the amount of
your unemployment benefits will be reduced according to a formula.
In order to understand the formula, one needs to understand the verbiage that Unemployment uses to describe the above numbers. Take, for example, the column $573/230/803. Unemployment refers to $573 as your “Weekly Benefit Rate.” It refers to $230 as your “Partial Benefit Credit” (don’t ask me why!). Oddly, Unemployment does not have a name for the $803 figure, so I call it “the Product.”
Now that we understand the nomenclature, we (hopefully) can understand the following statement:
If you
are working part-time and earning more than your Weekly Benefit Rate, but less
than the Product, you will get the difference between the Product and your
earnings for each given week.In order to understand the formula, one needs to understand the verbiage that Unemployment uses to describe the above numbers. Take, for example, the column $573/230/803. Unemployment refers to $573 as your “Weekly Benefit Rate.” It refers to $230 as your “Partial Benefit Credit” (don’t ask me why!). Oddly, Unemployment does not have a name for the $803 figure, so I call it “the Product.”
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| "I was told there would be no math..." |
Now that we understand the nomenclature, we (hopefully) can understand the following statement:
Examples:
Your Product
is $803 and you are earning $750 per week in a part-time job. You would get $53 per week in unemployment
benefits.
Your Product
is $633 and you are earning $450 per week in a part-time job. You would get $183 per week in unemployment
benefits.
Your Product
is $403 and you are earning $250 per week in a part-time job. You would get $153 per week in unemployment
benefits.
Your Product
is $263 and you are earning $150 per week in a part-time job. You would get $113 per week in unemployment
benefits.
Be Aware of Companies that Want to Hire You as an Independent Contractor on a Part-Time Basis While You Are Getting Pennsylvania Unemployment Benefits. Unemployment Layer Helping People Characterized as Independent Contractor While Getting Unemployment Benefits
Misclassification is a predatory employment practice being carried out throughout the United States. Companies save a lot of money, and spare them selves nearly all legal risks, by hiring people to work as independent contractors. There is little question that if Corporate America could get away with it, nearly all non-management personnel would be employed as "independent contractors."
Of course, they can't get away with it on such a grand scheme. Still, it is very, very, very common for companies (and staffing companies) to seek out unemployed workers and offer them "part-time work" as "independent contractors."
Many people who take such jobs think they are accepting part-time work that will not affect their unemployment rights. That would be incorrect. Unemployment considers people working as independent contractors to be "self-employed," and people that are self-employed are ineligible for unemployment.
If You Are Disqualified From Receiving Pennsylvania Unemployment Benefits Because You Took an Independent Contractor Position, You Can Appeal and Have Your Right to Benefits Reinstated
However, even if you have signed an independent contractor agreement, and are therefore initially deemed ineligible for continuing unemployment benefits by Pennsylvania's Department of Labor and Industry, the matter does not necessarily end there. If you appeal such a determination, and prove at an unemployment hearing that you are in fact a "true employee," or are not actually "self-employed, your right to benefits will be reinstated.
Be Aware of Companies that Want to Hire You as an Independent Contractor on a Part-Time Basis While You Are Getting Pennsylvania Unemployment Benefits. Unemployment Layer Helping People Characterized as Independent Contractor While Getting Unemployment Benefits
Misclassification is a predatory employment practice being carried out throughout the United States. Companies save a lot of money, and spare them selves nearly all legal risks, by hiring people to work as independent contractors. There is little question that if Corporate America could get away with it, nearly all non-management personnel would be employed as "independent contractors."
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| Part-Time Job as Independent Contractor Potentially Disqualifying |
Many people who take such jobs think they are accepting part-time work that will not affect their unemployment rights. That would be incorrect. Unemployment considers people working as independent contractors to be "self-employed," and people that are self-employed are ineligible for unemployment.
However, even if you have signed an independent contractor agreement, and are therefore initially deemed ineligible for continuing unemployment benefits by Pennsylvania's Department of Labor and Industry, the matter does not necessarily end there. If you appeal such a determination, and prove at an unemployment hearing that you are in fact a "true employee," or are not actually "self-employed, your right to benefits will be reinstated.
We Can Discuss Your Matter at No Cost to You
610-647-5027
Philadelphia Area Unemployment Attorneys Representing Independent Contractors
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