Legal Question in Employment Law in Tennessee
Short term independent contrator Void un-employment benefits?
I was recently laid off through a staffing service and signed up for un-employment benefits. My ex boss called me today and asked me to work for him directly for a few weeks. He said he would like to use a 1099 at the year end.
Can I qualify for a 1099? And if go to work for a few weeks I'll have to tell unemployment that I earned wages those three weeks. Would that void my unemployment benefits?
He is willing to pay me what he was giving the staffing service but if I lose my benefits at the end it may not be worth it.
How can I do this and not have tax problems or lose my benefits.
Thank you very much
1 Answer from Attorneys
Re: Short term independent contrator Void un-employment benefits?
Yes, if you receive any income during this period you must tell the umemployment office and offset that income from your benefits.
Whether you are able to receive a 1099 is a very complex question. It depends on a number of factors one very important factor is exactly what you are doing for this employer. I would be very careful if I were in your position because chances are he should be giving you a W-2. If you accept a 1099 make sure you save enough to pay your taxes and that you file quarterly tax returns as a self-employed person. If you accept a 1099 you should seek tax advice because with self-employment tax you could end up oweing the government a lot more money than you think.
It also sounds like this boss is trying to cheat the staffing service. You should review any contract or other papers you may have signed while you were employed by the staffing service there may be a prohibition from you working directly for a customer like this.
Good luck and be very careful.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
