Unemployment for freelancers?

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  • raskalnikov81

    I was freelancing at a large agency for a year until they let me go last week. I originally filled out a W2 at said agency and I've learned that because of this I may be eligible for unemployment benefits.

    Has as anyone else heard of this? I'm in CA btw.

    I'm still a little hesitant to file because the agency may get upset that I'm claiming unemployment from them even though I'm a freelancer. I don't want to burn that bridge.
    On the other hand its a big place so I'm thinking HR would never bother my old creative director with such information if my CD wanted my help again...

    Any advice? Many thanks.

  • ok_not_ok0

    You're not claiming unemployment from the agency. The money that you'll be receiving is what the government deducted from your pay cheque.

  • ukit0

    According to some guy in a forum (first result for "can freelancer collect unemployment")...

    Unemployment is a state benefit and is not covered by the self-employment tax (FICA), which is federal. In California, where I am, it is required that employers pay into unemployment, but owners of companies, which include self-employed people like contractors, are not allowed to pay into the system or receive benefits, ostensibly because you are not employed by anyone and therefor cannot be layed off, the event that triggers eligibility to receive unemployment benefits. In California you are either a wage employee or an independent contractor. Independent contractors cannot be paid hourly or directed by an employer. They are hired to accomplish a particular task for a particular price. If they are paid hourly, they must be considered wage employees and all payroll taxes, including unemployment paid. In this case they do qualify for unemployment if layed off.

  • raskalnikov810

    Thanks guys. I understand that I already paid into the system but its this insurance stuff below that makes me think if I file a claim it might piss them off:
    "The more claims against an employer, the more his rates go up. It's like auto insurance (or other insurance). If you have claims against you, you pay more in premiums. "

    * http://www.laborlawtalk.com/show…

    • they will be pissed off. my dad had it done to him, and the costs were outrageous.lambsy