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Texas: Sole-Proprietor Unemployment: income reporting

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Red1392

New member
Whereas before it was quite uncommon to get unemployment benefits as a freelancer, with COVID-19 I am able to receive them. It requires that I report all self-employed income in the week that I earn it, not the week that I did the work. As a gig-worker, sometimes I'm on a Net60-day or Net90-day pay, so I am just getting paid for some of the work that I've done before everything was shut down. I understand that W2 employees that work part-time need to report their income in the week they did the work because those W2's end up getting sent to the government by the employers and get cross-checked.

But I only get 1099's and I send W9's to the companies that I do work for, which doesn't indicate WHEN I got paid. Technically, could I report any income I get towards the END of my unemployment run or when work starts picking back up, so I don't have to have a deduction in my benefits during this critical time?

For example, I got paid $700 recently for something I did as a 1099 contractor awhile ago. Can I report this income later on, perhaps in 6-10 more weeks, when the prospect of getting gig-work becomes a little more likely?
 
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PayrollHRGuy

Senior Member
Income is reported to UI when it is earned not paid unless they have come up with some special COVID rule which I doubt.
 

PayrollHRGuy

Senior Member

commentator

Senior Member
I am gobsmacked. This makes absolutely no sense in any universe. I would absolutely love to know how in the HELL they are going to get this to work, and having seen some of this state's prior efforts......it won't. If you report this money you were paid this week for some work you did a month or two ago, it will simply stop your claim, you will receive no unemployment for that week, and you'll have to sign up again (re open)before you can make your weekly or bi weekly request to be paid for the following week.

If I were this OP, in this situation, with these instructions (yes, I read 'em, went through this tutorial!) I wouldn't report jack that I am just now getting paid for work that I did some time ago. If you work this week, and you're filing a weekly certification (a bi-weekly request for payment) for this week, you get paid in 30 days, you report it 30 days from now, okay, MAYBE that makes sense.

If they were ever to cross match this business with your other tax and earnings records (they won't. There is no possibility that any state in the union is doing any but the most basic fraud investigation right now They're busy drowning ) but if they ever did, you've reported this income that you made while drawing benefits. That's all, I do believe that they would possibly be asking of you.

That you have just had some money dropped into your personal situation from work you did a while ago before the covid disaster is not something that should be reported, it does seem to me. I can't find anything in the tutorial that would indicate otherwise.

I would love to be a listener on the conversation if you were so easily and simply able to call the help desk number and ask them and get the answer to this question. Because frankly, I can't see what on earth they're intending for you to do or what they're trying to measure here, and I do not think they know either.
 
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