"BMS" <mcfarland[at]yahoo.com> wrote:
- quote -

Thanks for all the responses. I decided that the amount of
profit I derive is so small tht it does not pay to keep the
business open with the potential to create any unempoyment
issues in any way. My business closed on DEC 31,2003. I have
20 days from that date to File my FINAL sales tax return and
surrender my tax certificate. Thanks to all for convincing
me that it is not worth the bother to keep this business.

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"BMS" <mcfarland[at]yahoo.com> wrote:
- quote -

Thanks to all who responded. I have made the decision to go
out of business as of DEC 31, 2003. I have 20 days from that
date to send in my final sales tax return which I will
denote as FINAL. It makes no sence to take any risk at all
being that th ebusiness is so small. Thanks to all!!!

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"Andy Green" <andygreen[at]optonline.net> wrote:

- quote -

In MA, you would claim the earnings for that week and have
check adjusted.

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Andy Green wrote:

- quote -

First, this isn't a tax question. Whether a business is
schedule C or not is (somewhat) independant of whether you
are an employee (under state law) or not.

That being said, I've been there, and have an answer.

On the unemployment forms, you report ALL INCOME. "Schedule
C" businesses usually count as "income" to the extent of
gross income from the business.

In California, your unemployment benefits for each week
would be reduced by 75% of "income", but the maximum benefit
for the year is not reduced.

It should also be noted that time working for your business
is NOT time looking for work, which might result in a
suspension or cancellation of unemployment benefits. I am
not a lawyer -- if you post the question in
misc.LEGAL.moderated, noting your state, you may get more
precise and accurate answers.

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Andy Green wrote:

- quote -

Self-employment by itself does not prevent one from
collecting unemployment benefits. Self-employment may cause
you to fail the test requiring that you be available for
work. Assuming you meet the criteria to collect and you
continue to meet the rules (able to work, available for
work, actively looking for work, etc., etc.) you can collect
benefits. Every state will stop paying benefits if you are
deemed to be in full employment. (Obviously you fail one of
the tests to collect benefits.) States set their own
criteria as to how many hours of work in a week either as an
employee or self-employed removes you from eligibility.
Every state reduces the UI benefits received based on income
earned either as an employee or in self-employment. For the
self-employed, income is net earnings after deducting COGS
and expenses from income. Usually, the formula to reduce
benefits includes some minimum amount of income before your
benefit is reduced. The formula to reduce benefits varies by
state. Naturally, if you earn too much, your benefit can be
reduced to zero.

Net, net: Check with your state Dept. of Labor as to how
they do the computation. Most states post this information
on their websites.

--
Alan
http://taxtopics.net

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"Andy Green" <andygreen[at]optonline.net> wrote

- quote -

Your state unemployment office can tell you for sure, but I
suspect the answer is yes.

- quote -

As I recall from years past, you ~must~ report all your
business receipts (not net profit), and that will impact the
amount of your weekly unemployment check.

- quote -

I'd be truthful about it, as being untruthful will bite you
in the [at]$$ at some future point in time.

The state unemployment office can tell you how it works.

--
Paul A. Thomas, CPA
taxman at negia.net

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"Andy Green" <andygreen[at]optonline.net> wrote

- quote -

My understanding is that a necessary condition for
collecting unemployment is that you are actively seeking
employment. Having a side income should only create a
reportable condition that impacts the actual payments.

- quote -

Of course you check yes and provide the name of your business.
Rule #1: Never sign your name below anything that is not the
truth to the best of your knowledge.

Dick

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If you make 60,000 a year at a big company, and have a side
business that generates from -500 - 2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the 60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. I see on the application for Uneployement in NJ
one of the questions asks "Do you own your own business?",
and there is a box to put the name of it in if you check
yes. - Thanks for any advise on this.

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