Author Topic: Should I take unemployment?  (Read 1391 times)

simple money

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Should I take unemployment?
« on: April 20, 2020, 12:40:56 PM »
I have/had a part time job as a pre-school teacher making $700 every other week. After the shut down we were all told to go on unemployment and whatever that did not cover the company would pay the difference (so we would be making the same amount we would normally make.)
Some of you may remember from my past posts, I also make a salary through my husbands business. I make a salary of 43K a year but I do not acctually work there. His business is doing okay and his other employees are able to work from home. He also got a 55K ppp loan which would cover payroll and rent for 2 months.
Because I had the other salary, I never took unemployment from my part-time job. If I did take it it would be $250 a week plus the $600.
Luckily, I started making changes to our finances after discovering MMM. We have an emergency fund and very low expenses so I don't "need" the extra income that my part-time job provided. I asked a friend about it recently and she said "why wouldn't you take the unemployment? It doesn't matter if you have other income your still entitled to it and you'd get the extra $600 too." I just don't know if it's right to take...any help or advice is greatly appreciated!

Padonak

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Re: Should I take unemployment?
« Reply #1 on: April 20, 2020, 12:45:36 PM »
I would say try to apply and answer all the questions honestly including your salary paid by the husbands company. If you are eligible then take unemployment.

scantee

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Re: Should I take unemployment?
« Reply #2 on: April 20, 2020, 12:46:00 PM »
Yes, absolutely, take it. If I remember your posting history correctly, then open your own checking account and stash it there.  He doesn’t tell you about his finances so no need for him to know about this account at the present moment. Keep this as an emergency stash in case you need to leave quickly.

charis

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Re: Should I take unemployment?
« Reply #3 on: April 20, 2020, 12:54:17 PM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

Ecky

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Re: Should I take unemployment?
« Reply #4 on: April 20, 2020, 01:35:52 PM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

I'm collecting "underemployment" right now. I was cut to 32 hours, and am currently receiving generous compensation.

FINate

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Re: Should I take unemployment?
« Reply #5 on: April 20, 2020, 01:55:46 PM »
Go through the application process. Be completely honest and disclose everything. Take whatever benefit you're eligible for.

The US will not improve its safety net as long as these programs are stigmatized as being for poor people. The average voter needs to experience the benefit or see it benefiting those they care about. Put the money to good use: shop local, get take out from a struggling restaurant, add to your investments, donate to a good cause.

Honestly, I would rather have money from government assistance going to people like you than big financial institutions that have no qualms about applying for every potential program. This will only happen though if people actually utilize these benefits.

charis

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Re: Should I take unemployment?
« Reply #6 on: April 20, 2020, 02:12:34 PM »
I think you should accept everything that you are entitled to, as would I.  I am somewhat surprised at the windfall that this is turning out to be for some people.  But I am happy for my on-the-edge family member who was laid off who will be making a good deal more on unemployment than she did working. 

The issue I see in the OP's case is if she certifies that she is not working (which would be correct) but still being paid while collecting unemployment.  Does that not raise a red flag?  It's not an "underemployment" situation unless she's actually working.

Runrooster

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Re: Should I take unemployment?
« Reply #7 on: April 20, 2020, 07:03:56 PM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

I'm collecting "underemployment" right now. I was cut to 32 hours, and am currently receiving generous compensation.

Can I ask what state you live in? I've looked at a few states (MD, TX, VA) and they seem to give benefits around 50-60% of your normal pay.  If you make more than that (24 hours) you don't get unemployment.  Or at least, that's how I read it.  My job has been cut to 24, 16, and now 30  hours.  I don't think I'll get anything but folks at work were insistent we would.  I don't think they've read the rules, just assume any pay cut is covered.

I also think simplemoney is not eligible due to her 43K job.

bigblock440

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Re: Should I take unemployment?
« Reply #8 on: April 20, 2020, 07:13:42 PM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

I'm collecting "underemployment" right now. I was cut to 32 hours, and am currently receiving generous compensation.

Can I ask what state you live in? I've looked at a few states (MD, TX, VA) and they seem to give benefits around 50-60% of your normal pay.  If you make more than that (24 hours) you don't get unemployment.  Or at least, that's how I read it.  My job has been cut to 24, 16, and now 30  hours.  I don't think I'll get anything but folks at work were insistent we would.  I don't think they've read the rules, just assume any pay cut is covered.

I also think simplemoney is not eligible due to her 43K job.

It's the additional $600 per week the feds are kicking in that does it.  Anyone making $1200 or less per week makes out better with the extra $600 than they did working.

Runrooster

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Re: Should I take unemployment?
« Reply #9 on: April 20, 2020, 07:42:54 PM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

I'm collecting "underemployment" right now. I was cut to 32 hours, and am currently receiving generous compensation.

Can I ask what state you live in? I've looked at a few states (MD, TX, VA) and they seem to give benefits around 50-60% of your normal pay.  If you make more than that (24 hours) you don't get unemployment.  Or at least, that's how I read it.  My job has been cut to 24, 16, and now 30  hours.  I don't think I'll get anything but folks at work were insistent we would.  I don't think they've read the rules, just assume any pay cut is covered.

I also think simplemoney is not eligible due to her 43K job.

It's the additional $600 per week the feds are kicking in that does it.  Anyone making $1200 or less per week makes out better with the extra $600 than they did working.

Well, for me at 30 hours I don't collect MD unemployment, so I don't get the fed $600 either.  That's why I asked what state Ecky is in.

charis

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Re: Should I take unemployment?
« Reply #10 on: April 20, 2020, 08:10:43 PM »
Right. And OP is currently making more than twice what she did at the job she's trying to collect against but planning to certify that she's working 0 days per week? That doesn't make sense. In my state you have to report all jobs and earnings from those jobs on the application, then you certify the days worked. If she is honest and reports her 43k salary, her company will have to answer to the unemployment office regarding her position/work. What then?

nereo

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Re: Should I take unemployment?
« Reply #11 on: April 22, 2020, 10:06:03 AM »
Are you still getting paid a 43k salary?  If so, I don't understand how you qualify for unemployment benefits.

I'm collecting "underemployment" right now. I was cut to 32 hours, and am currently receiving generous compensation.

Can I ask what state you live in? I've looked at a few states (MD, TX, VA) and they seem to give benefits around 50-60% of your normal pay.  If you make more than that (24 hours) you don't get unemployment.  Or at least, that's how I read it.  My job has been cut to 24, 16, and now 30  hours.  I don't think I'll get anything but folks at work were insistent we would.  I don't think they've read the rules, just assume any pay cut is covered.

I also think simplemoney is not eligible due to her 43K job.

It's the additional $600 per week the feds are kicking in that does it.  Anyone making $1200 or less per week makes out better with the extra $600 than they did working.

This is highly dependent on the state.  In some states the median weekly unemployment check is around $250 (e.g. FL, TN, MI, LA) - in others it's over $700 (WA, NJ, MI).
In my home state a person would need to make >~$950/week for their unemployment benefits to exceed their working wages.

Also - important to note that the extra Fed $600 assistance is good for 15 (?) weeks.  Assuming it's not extended (who knows?) long-term  unemployment will not have this level of support.

FINate

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Re: Should I take unemployment?
« Reply #12 on: April 22, 2020, 01:57:48 PM »
It is Massachusetts.
Also, if anyone know's for sure, is it legal for me to take a paycheck at DH's company without working? I have heard some say yes some say no. Should I just go off payroll there? Having me on payroll allows me to get 13K in a simple IRA per year and build up ss benefits but if it is illegal it's not with it. Also to note my husband has lied to me about financial info (he bought 20k in tickets through his business and sold most and kept profit, had $700 per month taken out of my paycheck check and put into his bank account w/o me knowing for 4 years and went to account and electronically signed my name on taxes w/o telling me.) He wouldn't show me company info which started everything and although we are stuck together in quarentine now I don't know how long we will be together.

Uh, isn't this something you should already know? Your status with the company has big implications. Are you an hourly employee, salaried, are you an owner, manger, are these dividends? You need to talk to your CPA and/or an attorney. Don't rely on internet strangers for this.

ChpBstrd

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Re: Should I take unemployment?
« Reply #13 on: April 22, 2020, 02:16:03 PM »
Suppose you backed your car into a light pole at the store. Your $0 deductible insurance would cover the damage and you are guaranteed no rate increase in the future. However, you have enough money in your bank account to pay for the damage yourself, so you're not sure it's right to file an insurance claim.

slappy

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Re: Should I take unemployment?
« Reply #14 on: April 22, 2020, 02:20:38 PM »
It is Massachusetts.
Also, if anyone know's for sure, is it legal for me to take a paycheck at DH's company without working? I have heard some say yes some say no. Should I just go off payroll there? Having me on payroll allows me to get 13K in a simple IRA per year and build up ss benefits but if it is illegal it's not with it. Also to note my husband has lied to me about financial info (he bought 20k in tickets through his business and sold most and kept profit, had $700 per month taken out of my paycheck check and put into his bank account w/o me knowing for 4 years and went to account and electronically signed my name on taxes w/o telling me.) He wouldn't show me company info which started everything and although we are stuck together in quarentine now I don't know how long we will be together.

Wasn't there a whole thread on this?

Runrooster

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Re: Should I take unemployment?
« Reply #15 on: April 22, 2020, 06:31:14 PM »
It is Massachusetts.
Also, if anyone know's for sure, is it legal for me to take a paycheck at DH's company without working? I have heard some say yes some say no. Should I just go off payroll there? Having me on payroll allows me to get 13K in a simple IRA per year and build up ss benefits but if it is illegal it's not with it. Also to note my husband has lied to me about financial info (he bought 20k in tickets through his business and sold most and kept profit, had $700 per month taken out of my paycheck check and put into his bank account w/o me knowing for 4 years and went to account and electronically signed my name on taxes w/o telling me.) He wouldn't show me company info which started everything and although we are stuck together in quarentine now I don't know how long we will be together.

Quitting your fake job will make you eligible for unemployment based on BOTH job's prior incomes.  Since you didn't actually work there, that seems super sketchy.  I'm not sure what scenario it would be legal to take a paycheck without working and still be able to invest in a simple IRA but collecting unemployment against that job seems wrong.  I don't think it matters what state you're in, I asked about Ecky because she is collecting underemployment while working 32 hours and that's similar to my situation but I'm not allowed.

calimom

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Re: Should I take unemployment?
« Reply #16 on: April 22, 2020, 07:19:03 PM »
It is Massachusetts.
Also, if anyone know's for sure, is it legal for me to take a paycheck at DH's company without working? I have heard some say yes some say no. Should I just go off payroll there? Having me on payroll allows me to get 13K in a simple IRA per year and build up ss benefits but if it is illegal it's not with it. Also to note my husband has lied to me about financial info (he bought 20k in tickets through his business and sold most and kept profit, had $700 per month taken out of my paycheck check and put into his bank account w/o me knowing for 4 years and went to account and electronically signed my name on taxes w/o telling me.) He wouldn't show me company info which started everything and although we are stuck together in quarentine now I don't know how long we will be together.

Uh, isn't this something you should already know? Your status with the company has big implications. Are you an hourly employee, salaried, are you an owner, manger, are these dividends? You need to talk to your CPA and/or an attorney. Don't rely on internet strangers for this.

Agree with @FINate completely on this. If you were to apply for UI  for your actual  job and state you didn't actually work at the job that pays  far more, it would quite possibly trigger an IRS audit or worse. Under these circumstance it would seem to be unwise to apply. You need further legal and accounting advice.

Laura33

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Re: Should I take unemployment?
« Reply #17 on: April 23, 2020, 06:22:21 AM »
It is Massachusetts.
Also, if anyone know's for sure, is it legal for me to take a paycheck at DH's company without working? I have heard some say yes some say no. Should I just go off payroll there? Having me on payroll allows me to get 13K in a simple IRA per year and build up ss benefits but if it is illegal it's not with it.

Have you spoken to an attorney or accountant yet?  We don't have the information or the specific knowledge to answer these questions for you, sorry.