Question about collection benefits and starting a business.

[AngelinaCat]

I have been unemployed for several months now and collecting a weekly unemployment check. I am planning on starting a business that may generate up to $2K or so in profits for the 1st few months (hopefully more after that.) I would love to continue collecting unemployment during the 1st few months of the business so that I could use the initial profits to pay off the amount I took out of savings to get the business started.

I know if I earn any money during the week I am claiming unemployment I have to let the state know, but I am wondering.... if I balance my business’s books on a monthly basis, then I only notify them of the amount I make once a month (versus each week) which could still make me eligible for 3 weeks or so of regular payments. Correct...? Does this make sense? Has anyone been in this situation?

Hi Nicole:

I am in Florida, but I think our situations are similar. You are supposed to 'report your earnings--even if you haven't haven't been paid yet'.

In my case, I work for a college, and we get paid by the month. Because this is an established institution, and I have an established 'job history' with them, I have to report my earnings.

You are talking about starting a business, where nothing is guaranteed. You may get paid something one month and nothing the next month. Your business may totally flop--I hope otherwise for you. But, if I were you, I would just keep your mouth shut, and keep claiming your weeks.

You will have to record 'job contacts' and send them in, to be able to qualify. Keep looking online for any openings in your field. Also, any random contacts with friends / neighbors about proposing a *whatever* business, or small business seminar, or job fair, you may attend, will qualify.

Good luck to you.

[nicole1969]

Question about collection benefits and starting a business.

I have been unemployed for several months now and collecting a weekly unemployment check. I am planning on starting a business that may generate up to $2K or so in profits for the 1st few months (hopefully more after that.) I would love to continue collecting unemployment during the 1st few months of the business so that I could use the initial profits to pay off the amount I took out of savings to get the business started.

I know if I earn any money during the week I am claiming unemployment I have to let the state know, but I am wondering.... if I balance my business’s books on a monthly basis, then I only notify them of the amount I make once a month (versus each week) which could still make me eligible for 3 weeks or so of regular payments. Correct...? Does this make sense? Has anyone been in this situation?

[Ifonly]

Check your state's law regarding self-employment before you decide anything ~ (check the handbook if you got one). In PA, the very act of becoming self-employed makes you ineligible for your benefits. Literally, if you print a business card, earn $0, and say "I'm thinking of starting a business to help out/grow", say goodbye to your benefits. The only exception to this rule in PA is if you always had a "side" business (while working fulltime before your layoff), continue the "side" business and the income level does not indicate that one could survive on it. My neighbor made $80 teaching guitar lessons, reported it and lost his benefits for good.

[jjim120]

Whatever business you plan to start, keep in mind that your gross income from that business IS NOT profit, nor is it earnings to you. Keep your business records totally separate from your personal records. If you are a sole proprietor, with no employees, you may report your net earnings, after all expenses, on your tax forms. Please consult an accountant before getting into a big mess.

[keepinitreal]

I have been unemployed for several months now and collecting a weekly unemployment check. I am planning on starting a business that may generate up to $2K or so in profits for the 1st few months (hopefully more after that.) I would love to continue collecting unemployment during the 1st few months of the business so that I could use the initial profits to pay off the amount I took out of savings to get the business started.

I know if I earn any money during the week I am claiming unemployment I have to let the state know, but I am wondering.... if I balance my business’s books on a monthly basis, then I only notify them of the amount I make once a month (versus each week) which could still make me eligible for 3 weeks or so of regular payments. Correct...? Does this make sense? Has anyone been in this situation?

nicole1969, I haven't been in this situation, but the way you explained it makes sense to me. Good luck!