Forums: Discussions for entrepreneurs and small business.

Hi everyone. I have a client that asked me a tricky question today. She was layed off recently, and is accepting California Unemployment insurance payments. She wants to start her own marketing consulting business, and doesn`t know if she will have to forfeit her UI claim as soon as she makes any money. I`m sure the answer is different by state; but, does anyone know the California policy on this, or where we can find it online?  I couldn`t find anything specific on www.edd.ca.gov/unemployment. I`ve heard you can earn up to $200 per month as a contractor without giving up your UI payments. But, that was just antidotal. Any expertise or direction on this topic would be greatly appreciated, as I`m sure she`s not the only one with this concern.

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Maggie A. Barr
Principle Consultant
Maggie Barr & Associates
www.targetedsmbmarketing.com
http://www.linkedin.com/in/maggieabarr maggie.anne.barr@gmail.com
408-454-6488

Please don`t quote me on this but I think that there exists income limits on how much one can make and still receive unemployment insurance in any State or jurisdiction.

In CT, if you get laid off from your primary income, but still hold, for example, a small part time job, you can still claim unemployment. They just dock the money you make from the unemployment check. I would imagine most states would be similar.

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Making limitless possibilities much more limited.

Nevada allows people on unemployment to earn a small side income and still retain all or a portion of their unemployment payments.  But, you have to report the income to the unemployment office.  I don`t know about the foreign country of California though. 

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

Based on the examples, California law states a self employed person may collect unemployment.  However, several conditions were set down.  One, the person must be available to accept work elsewhere if an offer is made.  If the person is self employed in order to earn money for food, shelter clothing, bill paying said person is considered available for work and eligible for benefits.  However, if said person refuses work citing that such work would interfere with his self employed status, then said person is no longer eligible for unemployment benefits.


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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

Whether it is California or another state, why not just call the state? If they do give you a definitive answer make sure you ask for a refernce as to where in the regs (should a problem arise later on).

Ed Baloga, CPA / MBA
Principal CFO
Baloga Associates
ebaloga@baloga-associates.com
www.twitter.com/edbaloga