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How Does Part-Time Work Reduce Unemployment Compensation

Updated : January 21st, 2021

An advantageous aspect of working for yourself is you almost never get fired. That’s one of the reasons why many people who have full-time jobs also have a side business on the side.

But unexpectedly, if you have lost your 9-5 job, you might want to think taking a gap from your business in order to maximize your unemployment benefits. The main point is, if you don’t want to deceive yourself or the system, it requires calling the local unemployment compensation office and asking lots of questions.

Some states support out-of-work individuals as they feel that some form of extra income is needed to stay afloat while other localities deduct a portion of money earned from the weekly benefits. It all depends on the nature of work and the law of each state.

If your gross earnings for a week equal or exceed your weekly benefit amount or if you work 32 or more hours in a week, you are ineligible for unemployment benefits for that week.

While if you work less than 32 hours and make less than your weekly benefit amount, you are eligible to receive only a fractional benefit payment. Moreover, your weekly compensation will be reduced dollar by dollar for every 55% of part time earnings in a week. Any money not paid due to a reduction remains in your account balance throughout the end of your benefit year.

The first concern of any unemployment insurance office is that your business doesn’t hamper your ability to find out and accept your next full-time job. The general rule for unemployment eligibility is that you must be able to accept work and must be looking for work.

State Specific Rules for Part-time Pay

Each of the states has different set of rules for mixing side income and UI benefits. With some states as long as you’re available full-time and looking for work, your part time self employment doesn’t affect insurance check. So if you do some consulting work or want to run an online store on weekends, your benefit check won’t suffer.

While selling your own goods is often considered converting your existing assets to cash, some business activities could be seen as earning a salary. So, depending on how your state views it, the activity may not your benefits at all.

The start of your unemployment benefits is also delayed by severance pay. For example, if you collect ten weeks of severance pay, you will be ineligible for receiving UI benefits for the first ten weeks after your last day of work. Moreover, if you want to stop receiving benefit payments, simply stop requesting payment and your account will become inactive. But keep your unemployment debit card and password in a safe place in case you need to reactivate your benefit account.

Pension Payment and Unemployment Compensation

Pension payments from a fund your base period employer contributed will reduce your UI benefits unless:

• You roll the pension into another retirement fund without taking a taxable payment or,
• You have to pay a penalty for early withdrawal.

According to one of the experts, “A person has to make out a mental plan,” “No multi-tasking.” If you analyze how much your part-time employment generates and what it costs can help you out in making some important decisions while you’re looking for your next job. Moreover, it will also give some realistic expectations for how you want to schedule your time and what you want to do next. Don’t use the same block of time for both job hunt and your business but switch back and forth between the two.

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  1. I lived in ga in 2019 and move to florida in 2020 and work for the xmas months in nov-dec. I was told to do a combine wage claim. my question is which state do i file the claim in?

  2. I filed for pua in Ohio back in October 2020.My claim has been in ajudacatuon since 11/1/20.So 2 to 6 weeks is a total understatement! When I call.i am told to basically hurry up and wait some more.I have recently been redetermined and my claim is allowed.but I have one pending issue.How long is too long?

    1. Nicole,

      Unfortunately, nobody has an answer. There are perhaps thousands of pending applications. Please consider the option of visiting an office in the vicinity if safe and feasible.

  3. If you claim your weeks for unemployment and for the next 2 months you still have not received your money. Where can you go in volusia county to talk with a live person

  4. On NYS DOL website, my claim is saying current yet the information is for my old claim with 0 days remaining despite receiving 2 weeks of payments on the new claim and I was able to certify last night. I haven’t received anything; no letters or emails.

  5. I was disqualified for UI benefits for not providing an ID and other forms of identification. How do I fix this?

    1. Hi Mike, I’m in NYS and was at the end of my BYE on 3/14, I was still certifying but wasn’t getting paid. I found out I had to file a new claim because my other was exhausted. I’m still waiting on approval. Maybe you have to file a new claim. I hope this helps.

  6. They say 2-6 weeks it’s more accurate to say 2-6 months; and when you call many of them are rude and unwilling to assist!

  7. someone needs to look into Sharon L. Anton gillette, wyo. or dickinson, nd she is a fraud and has done so many fraudulent things and please look into her

    1. Annette,

      Please report it to the Fraud Division of the Unemployment Office in your state. You can report on the website.

  8. I worked part time for thee years here in florida. I’m currently not working. I’m also retired and collects social security.
    My question is
    Am I qualified to file for unemployment ?

    1. Ruby,

      To be eligible, you’re required to have sufficient hours and earnings. Please use the “Benefits Calculator” available on this website.

  9. So adjudication takes 8 to 12 weeks. Oh okay, that explains why I havent received payment since July. That surely helps just like the rest of the information that you give. And by the way. What’s the NEW reason you can’t get through to the Call Center.

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