Thursday, December 8, 2022

How To Make Money On Unemployment

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How to Make money with Side Gigs when Unemployed

If youre a frequent shopper, consider earning cash back each purchase you make. When shopping online, extensions like Honey or Gumdrop can earn you that cash back. When youre making a trip to your local store, cash back credit cards;may be more beneficial. As long as you pay off the balance on time, you could earn a profit from everyday purchases.

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Can You Collect Unemployment If You Have A Side Business

Under most regular unemployment insurance regulations, independent contractors and self-employed workers cant collect unemployment benefits. But the CARES Act, which expired at the end of 2020, provided relief to freelance workers, independent contractors, self-employed workers and small-business owners who wouldnt otherwise qualify.

Since 2020, Congress has passed two pieces of legislation that extend the unemployment insurance benefit period for individuals who are self-employed, including those with side businesses.

Facing Unemployment And Mounting Debt Talk To A Licensed Insolvency Trustee

When you owe money during unemployment, it is easier to manage those debts if you know all of your options. Whether its better budgeting, small business restructuring, negotiating a consumer proposal, or filing for bankruptcy, Spergel trustees are here for you and have been helping Canadians resolve debt challenges for decades.

Speak with a Spergel Licensed Insolvency Trustee from the comfort and safety of your home to learn what kinds of debt help may be available for you:

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Unemployment During The Coronavirus Pandemic

The Continued Assistance for Unemployed Workers Act extended Pandemic Unemployment Assistance funds under the CARES Act through March 14, 2021. On March 16, the unemployment benefit for side businesses was again extended through September 6, 2021, under the American Rescue Plan Act.

PUA funding is available through each states unemployment board. Workers who are eligible for PUA can receive an extra $300 weekly benefit under the program.

Under the Mixed Earner Unemployment Compensation program, workers who are eligible for other types of unemployment benefits and have earned $5,000 in a year through self-employment can continue receiving a $100 weekly benefit on top of regular unemployment insurance.

Since the start of the pandemic, workers with side businesses or who are self-employed, freelancers or independent contractors can receive up to 86 weeks of unemployment insurance through PUA.

How Working Affects Your Claim

How to Make Money & Stay Afloat Financially During Periods ...

If you earn money while receiving EI benefits, you can keep 50 cents of your benefits for every dollar you earn, up to 90% of your previous weekly earnings . Above this cap, your EI benefits are deducted dollar-for-dollar.

Youre not eligible to receive EI benefits if you work a full week, regardless of the amount you earn. However, this wont reduce the total number of weeks payable on your claim.

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Unemployment Benefits As An Independent Contractor In Illinois

Illinois is particularly generous when it comes to earning money as an independent contractor while still claiming unemployment benefits.

As a part-time worker, you can earn up to 50% of your weekly benefit amount and still receive full unemployment benefits, providing you work fewer than 40 hours per week, earn no more than $667 per week and continue to look for a full-time position. For every $1 you earn over the 50%, your benefits will be reduced by $1. If you earn the same as your unemployment benefits per week, you will no longer receive any UE money.

In this example, if youre eligible for $500 in unemployment benefits per week, you can still earn $250 each week without it affecting your unemployment benefits. If you earn $260 per week, your benefits will be reduced to $490. But if you earn $500 per week, your UE benefits will be terminated.

Who Pays For Unemployment Insurance

Usually, unemployment insurance is funded by a tax imposed on employers by the state they operate in and the Federal Unemployment Tax Act . This equates to 6% of any employees first $7,000 in earnings. Unemployment insurance spending is excluded from balanced budget standards, and states are permitted to borrow money from the federal government if their resources are depleted.

Any state that borrows money from the Treasury must repay it within three years, or the federal government would automatically raise taxes on those businesses until the debt is paid off. Because the federal government does not set guidelines for how much money laid-off workers should be entitled to, states are free to interpret and make their own reimbursement decisions.

All states have the authority to set their unemployment tax rates and the amount of reimbursement, and the length of time that benefits are provided. States can also set their eligibility standards, such as the minimum amount of time someone must work before being laid off.

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What Type Of Financial Relief Is There For Side

Under normal circumstances, people with side businesses are not eligible for unemployment benefits. However, the CARES Act and now the latest American Rescue Plan Act expanded coverage for nontraditional workers, including freelancers, independent contractors, small-business owners and other types of workers who are self-employed. Even if you do your side business only a fraction of the time, youre eligible to receive some compensation if you lost work.

How To Make Money Without A Job

Ways to Make Money While Unemployed

Are you one of millions of Americans who’ve lost a job, been furloughed, closed a business or seen a decline in household income over the past year? Or, like many parents, maybe you’ve had to take a step back to stay home with kids while schools are closed to in-person learning. If so, you’re not alone.

Planning your budget without a formal “9 to 5” job and the steady paycheck that comes with it is often a challenge. Fortunately, you may be able to make money that supplements your income now, and could possibly even lead to future career opportunities. Here are a few ideas to get you started.

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How To Survive Unemployment

We are currently in what looks to be a recession, with unemployment rates as high as the Great Depression. Chances are, many of you are unemployed, furloughed, and maybe facing extended unemployment. While Im currently still employed , I have unfortunately been unemployed before. Here are ten tips that I used to survive unemployment and will hopefully help you survive financially while unemployed or at the very least mitigate unemployment damage.

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Available For Work Option

Let employers know that youre available so you can find your next job faster. Indeeds Ready to Work option shows employers that you can start work immediately. All you need to do is check the box so hiring managers can find you.;

LinkedIns Open to Work feature is another way to show recruiters that youre open to new job opportunities and available to work right away. LinkedIn reports that job seekers who selected Open to Work on their profile doubled their likelihood of getting a message from a recruiter. Additionally, members who added an Open to Work frame to their profile picture were 40% more likely to receive InMails from recruiters.

Make Sure You Withheld Taxes From Ui

How To Make Money When Unemployed

You might not know that you have to pay federal and, in some cases, state taxes on what you receive in unemployment benefits. Withholding that now, instead of pushing it down the road through a quarterly payment, might help prevent you from having to pay it at a time when you are more strapped for cash, especially after the $300 benefit ends. To do this, youll have to file a Form W-4-V.

Youre going to have some sticker shock if you wait, Evermore says.

The Biden administrations American Rescue Plan from March excluded the first $10,200 worth of Americans unemployment benefits from federal income taxes in 2020 so long as their income wasnt above $150,000. Whether thats extended for 2021s tax season is still up in the air.

The Internal Revenue Service has disbursed more than 8.7 million unemployment compensation refunds totaling over $10 billion since May, according to a

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Inventory And Prioritize Your Cash

To figure out how long you can hang on while you’re waiting for the unemployment check, you’ll have to do two things. First, estimate the cash you need for must-pay bills and groceries over the next six weeks. Then, inventory and prioritize cash and accounts that can be converted to cash.

The sources you’ll tap first are your checking and savings balances, of course, but also things like old gift cards, unused credit balances, the money in your change jar, the quarters in your car’s center console, and even loyalty points that have purchasing power. Take a peek into your Venmo and PayPal accounts, too, for any usable funds.

If those sources don’t turn up enough cash to cover the essentials, you can take more drastic measures. Here are three, in order of priority:

  • Cash out any CDs if you have them. You might incur penalties, but that’s preferable to racking up late charges on your bills.
  • Use a credit card to cover a small shortfall. This is only viable if you don’t already have high debt balances and you think repayment will be manageable once you start receiving regular unemployment checks.
  • What Unemployment Insurance Tells Us About Work During A Pandemic

      NPR

    Samuel Cai

    One of the most expensive provisions in President Biden’s COVID-19 relief plan involves giving unemployed workers an added $300 per week, through September 6th, on top of their existing state unemployment insurance benefits. While the House version of the bill called for $400 per week, this was revised down to $300 in the Senate proposal, due to a last minute push supported by moderate Democratic Senator Joe Manchin. Senator Manchin argued that an extra $400 per week was too much, and could stifle people’s motivation to find jobs. “We want people to get back to work,” he said. “We’re going to have a hard time getting people ready to go back in and keep the economy going.” Seems like basic economics: if you make nearly as much money as you do working, then why would you work?

    The federal bonus from the CARES Act eventually expired, and by mid-September of last year, states returned to their pre-pandemic levels of benefits. For the next few months, Dube compared how employment levels varied across states using data collected by the U.S. Census Bureau. He concluded that states with low unemployment insurance benefits did not increase employment levels more than states with high levels of unemployment insurance benefits. In fact, just the opposite: high unemployment benefits led to slightly higher employment levels.

    So policymakers can breathe easy, then: raise the unemployment benefits, and watch the employment numbers rise!

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    What Will Happen To Your Unemployment Benefits If You Work As An Independent Contractor

    Its clear that there isnt a one-rule-fits-all when it comes to working as an independent contractor while still collecting unemployment benefits. Eligibility requirements and how much money youre entitled to vary by state.

    To clear things up and help you see where you stand, heres an overview of how your unemployment benefits will be affected if you work as an independent contractor in several different states.;;

    Unemployment Benefits As An Independent Contractor In Texas

    How to Make Money when you’re Unemployed

    In Texas, you can receive unemployment benefits as long as you meet other requirements, including continuing to look for full-time work.;

    While working as an independent contractor, you can earn up to 25% of your weekly benefit amount without your benefits being reduced. If you earn more than 25% in a week, the unemployment benefit money you receive for that week will be reduced by how much you earn over the 25%. If you earn more than your weekly benefit amount, you wont receive any unemployment benefits at all.

    For example, if you receive $500 per week in unemployment benefits, you can earn up to $125 per week working as an independent contractor with Cloud Dentistry before your benefits will be affected.

    In the same scenario, if you were entitled to $500 per week in unemployment benefits, but received $150 per week working as an independent contractor, your weekly unemployment benefits would be reduced to $475. If you earned more than $500 per week as a freelancer, you wouldnt be entitled to any unemployment benefits.

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    Some States Dropping Out Of Fpuc

    For you to receive FPUC funds, your state or territory had to sign up. According to the DOL, as of April 29, 2020, all 50 states and the District of Columbia were signed up and paying FPUC benefits.

    Recently, however, some states, have announced plans to stop providing temporary federal unemployment benefits, including FPUC program funds. These statesâwhich according to Forbes, include North Dakota, Mississippi, Alabama, Arkansas, South Carolina, and Montanaâsay extra and extended unemployment benefits discourage unemployed workers from returning to the workforce. Observers expect additional states to discontinue extended or expanded benefits.

    Some states are reinstating requirements that out-of-work benefits recipients prove they are looking for work, a stipulation most states dropped after the pandemic hit in 2020. Some states and businesses are offering sign-up bonuses to encourage workers to apply for available jobs.

    Meanwhile, DOL Secretary, Marty Walsh told the Washington Post that the department had “not seen evidence that enhanced unemployment benefits are keeping people out of the labor force.”

    A working research paper by Professor Arindrajit Dube of the University of Massachusetts at Amherst, suggests that low unemployment insurance benefits do not increase employment levels more than happens in states with high levels of unemployment insurance benefits.

    If You Lose Your Job But Have A Side Gig

    You’ll qualify for unemployment if you lose your job through no fault of your own and will receive benefits based on your previous wages. If you’re still bringing in income through a side hustle, such as by building websites for clients through Fiverr or selling through your Etsy shop, you’ll need to include that when you certify your weekly benefits with your state unemployment office.

    Evermore tells CNBC Make It that any taxable earnings, including those made from independent contract or freelance work, will be considered in your unemployment filings. What you make from your side gigs can lower the amount you receive from unemployment that week, or it could deem you ineligible for benefits for the week entirely.;Many states allow you to earn up to a certain percentage of your benefit amount through other work, before your payment is reduced.

    Failure to report income is classified as;unemployment insurance fraud. Consequences vary by state and can include having to pay back benefits plus interest, penalty fees, ineligibility for future benefits and criminal prosecution.

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    How Your Earnings Impact Unemployment

    The wages you earn while youre employed may reduce your unemployment benefits. Because there are no national guidelines for unemployment eligibility, the effect of your stopgap earnings will vary from state to state.

    The earnings limit may be a dollar amount or a percentage of your earnings. Continued eligibility depends on your state’s regulationsit might be based on the number of hours or days you work in a week. If you earn or work over the limit, then you wont be eligible for benefits for that period.

    Use CareerOneStops Unemployment Eligibility Finder to learn about eligibility, benefits, filing in your location and find answers to any questions you may have about your claim.

    For example, in New York, if you work fewer than four days a week and earn under $504, you may receive partial benefits. Each day or part of a day you work causes your weekly benefit rate to drop by one-quarter.

    In California, if you earn $100 or less a week, any amount you earn over $25 is subtracted from your weekly benefit amount. You receive the difference if there is any.;

    If You Have Two Jobs But Lose One

    How to Make Money When Unemployed

    If your working hours are reduced in any way, including if you hold several jobs and you’re laid off from one, you may qualify for partial unemployment, says Michele Evermore, senior policy analyst at the National Employment Law Project.

    Eligibility will vary by state, and your benefit amount will be based on the amount of work you lose as well as the earnings you’re still bringing in each week. Workers earning partial unemployment are also eligible to receive the weekly $600 federal benefit laid out in the coronavirus relief bill.

    Many states award partial unemployment benefits based on your hours worked. However, some, like New York, base your benefit amount on the number of days worked during the week. This could impact how you schedule shifts at your remaining job, such as choosing to work longer shifts on fewer days versus spreading hours throughout the week.

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