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View Full Version : Can 1099's file for Unemployment Inusrance in CA?



Wake Havasu
07-24-2006, 08:41 PM
As a 1099 is there a way that One can file for UI and get it?

al cole'holic
07-24-2006, 08:48 PM
..I think that would be welfare and food stamps!

HM
07-24-2006, 08:52 PM
Yes. There are several professions that have to pay into unemployment insurance and workman's comp even though they are 1099. 1099 is no longer automatically considered an independant contractor by the labor board (EDD in CA). Real estate, mortgage, and even insurance industries are falling under this new ruling because the people working 1099 are NOT truly independant contractors. An independant contractor should be just that...independant of the company paying them. In the real estate industry, you can't work for both Century 21 and say Tarbell at the same time....if you are true independant contractor...it would not make a difference. That ruling is spreading.
I already had an employee file for unemployment and win. I eventually won in appeal, but not because that employee was 1099. If the 1099 only gets paid by one company and has a consistent earnings track record...being paid atleast 1 time per month and they are fired, they stand a good chance of collecting.

HM
07-24-2006, 08:55 PM
BTW - the whole ruling was not based on the labor board's compassion of 1099 employees. They did it for the revenue of the companies paying into the insurance - there is more money for them. Granted, some companies purposely avoid W-2 because of that. Now, they are saying...."We don't care how you pay them, W-2 or 1099, you still have to pay for the insurance."

al cole'holic
07-24-2006, 09:06 PM
...You are right about not doing it for compassion, they want the UI deposit :mad: Just keep your 1099 employees under the required $$ with turnover :D

Wake Havasu
07-24-2006, 09:24 PM
So as a 1099 It's the employer still paying and not the Employee (1099)?

HM
07-24-2006, 09:43 PM
So as a 1099 It's the employer still paying and not the Employee (1099)?
Well, technically, it is the employer paying into the unemployment insurance - the employer writes the check. There are exceptions.