Michigan - Receiving Unemployment & Newly Self-Employed

[torrentted]

What is the name of your state (only U.S. law)? Michigan

I've been receiving unemployment for a while now after being fired last September. I've just recently started my own business and am wondering if I still qualify for unemployment. I do projects for other companies who pay me a lump sum at once and then residuals later on, depending on profits.

Right now, I basically spend most of the initial project payment sum on other team members that I require for the project and what's left is very little and already spent on other expenses. I'm building this company of mine up quickly, but expect to have legitimate expenses that will sallow up all the revenues for the immediate future (e.g., as soon as I get more money it's invested in the next project and/or office space/equipment).

The first payment from the company hiring me under a work-for-hire contract was sent to me as an individual and I filled out a W-9 for them. All of this went to my personal bank account, but was already spent before it even arrived. I'll have an LLC set up for the next project payment.

I also do unrelated, to the company, but within the same industry, freelance work and receive it under a 10-99 as well. Though, it is so closely related to my other business that I could probably lump it in with my company. How will this all work?

I definitely still need the unemployment to pay all of my bills and can't really get by too easily without it for the near future. I really don't yet have any real income--later on, the residuals from these projects may end up being substantial, but even that will be spent on expanding the company as soon as it comes in and really won't be income. I suppose that I can do that forever and I don't want to commit fraud and I don't feel that I would be if I continue to collect unemployment, but I really can't find any information out about this and the unemployment office's number is constantly busy and I haven't been able to get through and ask.

Thanks for all your help and I look forward to the helpful responses.

 

[pattytx]

This is specific by state, but if you are spending a majority of your time on your business, you are not looking for a job nor able to accept a reasonable offer of one, both of which are necessary for contuining UI benefits. Contact the state UI commission and ask them.

 

[torrentted]

Hey. I still have plenty of time to look for a job and can accept a good one as well. I understand that it's unique by state and I've already stated that I've tried to contact them, but that I can't get through. Your response is not helpful and you clearly didn't spend any time on it to try and make it so, especially since, in some states, like NY, they allow entrepreneurs who are setting up new businesses to continue to receive benefits.

I'm really looking for some useful information on how reporting income or earnings is calculated for the newly self-employed. As I said, I know in NY that the state allows entrepreneurs to receive benefits while setting up a new business, but I have no idea how my state of Michigan works.

I'm looking to abide by the law, but I can't find it and came here hoping someone that knew could advise me of it. I honestly can't find any information about my situation out and I will appreciate all honest help. Thanks.

 

[cbg]

In every state, including New York, there is a limit to how many hours a week can be spent on putting together a new business while still collecting benefits. If your expectation was that someone here would be able to take the place of a Michigan intake worker or ALJ and be able to give you a carved in stone answer to your question off the top of their heads, your expectations were set too high. And if you were expecting someone else to look it up for you, why?

It astonishes me the number of people who expect the volunteers here to do their research for them. Just exactly how much time was Patty supposed to put into looking up your answer for you?

 

[pattytx]

And with that attitude, I wouldn't research it now anyway.

 

[torrentted]

cbg,

I expect Patty to at least read the post where I clearly stated that I was unable to contact Michigan UIA--Michigan's services are the most strained in the nation and anyone trying to avail of them understands exactly what this means if you're trying to get some answers. I've searched for info on this for several hours now and am unable to find any information on this and need to make a decision very soon. My only expectation for this forum is that any response that I receive be helpful.

Patty,

There really wasn't any need for me to be so blunt with you, but all I stated was the truth. My apologies for not being more diplomatic and please don't let our less than cordial interaction discourage you from genuinely helping any others.

To all that frequent this forum and may be able to offer some helpful information:

I fully understand and appreciate that you all are doing this simply out of the kindness of your heart and that you have no obligation to do so. I respect this and will be most thankful for any help. Thanks.

 

[pattytx]

All states are. Michigan is no exception.

If the commission provides for asking questions via email, do that. You'll get a quicker answer.

 

[cbg]

So no one should answer your question with anything less than the information you want? It's not helpful to try to explain why you need to continue trying?

 

[torrentted]

I got through to Michigan UIA.

They said to keep filing as normal and that you only need to report any earnings after expenses (but before income taxes) that you make. There's mention of a profit and loss sheet on the M.A.R.V.I.N. pages for the self-employed, but the lady I talked to asked her supervisor about being self-employed and she didn't even mention it. I asked about the record of work search for the extended benefits and was told to simply apply to three different places each week.

Basically, as long as you keep account of your records and can prove all of your expenses and show that no earnings were made after expenses, then you can continue to collect unemployment in Michigan while self-employed or starting up a new business. Just remember to keep detailed records in case they have any questions for you down the line about any 10-99s or anything like that and you should be good to go.

 

[marlojones]

Thank you, Torrentted !

Thank you for having the fortitude to finally get through to the Michigan Unemployement Office by phone. Your question to this forum was well stated and your very polite reply to the very snippy answers given by Patty showed you to be a gentleman with a considerable amount of restraint and intelligence. I hope your business endevours are going well and that we all survive this nightmare with some degeree of sanity. Your answer was exactly what I needed. Thanks again!

 

[cbg]

You do realize that this post was from two years ago and the poster has not been back, right?

 

[pattytx]

And honey, if you think my responses were "snippy", you haven't been around much.