Does an employee still qualify for unemployment under a 1099? Is the 1099 Legal if the employee is really a salaried employee?

If your work conditions are such that you are an employee, not a contractor, then tell your employer, immediately, that he is in error in paying you on a 1099, and that he is required to pay you as an employee - including stopping taxes, social security etc.

Document all communication with him on this matter. If he continues to pay you as a contractor, and you aren't one, he is breaking the law. If you go along with this, you would be unable to collect unemployment when he lets you go, because you would have what the law calls "unclean hands" - you co-operated with his illegal action.

However, if he lets you go after wrongly paying you as a contractor, and you can show that you were objecting to this practice throughout, you can sue him for the money you would otherwise have received from EDD as unemployment (You will not get anything 'from' EDD because if he's reporting you as a contractor he's not paying UI premiums for you.)

The link below is the DLSE web page on how to determine if you are legally classifiable as a contractor or not.

Richard

The fact that your employer chose to pay you by 1099 does not mean you are not a legal employee!

The IRS.gov site gives you the checklist for what is considered an employee. If you meet the criteria and are subsequently laid off, file for unemployment. Before then gather any proof you can (written instructions, voice mails directing your work, training materials, etc) that you are an employee - if you are.

Then your state unemployment commission will pay you while collecting the owed taxes and fines from your employer.

We went through this with my husband 2 years ago. It took a little longer but he got all his payments (you start checking in every 2 weeks right away - they'll pay you a lump sum when it's approved).

No, you do not qualify for unemployment on a 1099. You work for yourself, and you can't lay yourself off and collect unemployment.

The IRS has guidelines as to who qualifies to work on an 1099. Check their web site.

I am not working for myself. I am working for an employer. I want a W-2. I am getting paid hourly. I want to collect unemployment. I think this is illegal.

You can not collect unemployment OR workers comp if you are an independent contractor.

Many employers ILLEGALLY classify employees as IC.

Read this.

http://www.irs.gov/Businesses/Small-Businesses-&-S...