How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Joseph Your Own Question

Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5065
Experience:  Extensive experience representing employees and management
54899578
Type Your California Employment Law Question Here...
Joseph is online now
A new question is answered every 9 seconds

I have a question about CA LLC and unemployment insurance claims:

Resolved Question:

I have a question about CA LLC and unemployment insurance claims:
We need to address the following three cases
(1) LLC member (paid as owner draw files K1)
(2) part-time employee (W2)
(3) contractor (paid as 1099)

In addition, throughout the relationship with the LLC , each person also had other contract work (1099s).

Each is no longer with the company due to no work available.

Q1: Are they all eligible for unemployment insurance benefits as they are no longer with the LLC and no longer have outside contract work.?
Q2: Are there any differences between how they file for unemployment claims (assuming eligible)?
Submitted: 11 months ago.
Category: California Employment Law
Expert:  Joseph replied 11 months ago.
Hello,

My name isXXXXX am a licensed attorney, and my goal is to provide you with excellent service today.

Actually, only the part time employee is eligible to receive unemployment benefits. (co)owners of LLCs and independent contractors do not have unemployment insurance deducted from their pay and do not pay into the California unemployment insurance system, so they are not eligible for unemployment benefits.

Only employees who are paid as W2 employees have unemployment insurance payments deducted from their pay and are eligible to apply. So, only the part-time employee can receive unemployment insurance.

I hope the above information is helpful.

Please let me know if you have any clarifying or follow up questions as I want to ensure that you are completely satisfied with my service. Please contact me first if you are contemplating leaving me a negative rating, as I’ll be happy to continue to address your concerns until you are completely satisfied with my service.

If not, please remember to rate my answer positively so I get credit for my work. (It doesn’t cost you anything extra and is necessary even though you’ve made a deposit). Please also rate me highly (9-10) when you receive your customer satisfaction survey as well.

Thanks and best of luck!

-Joseph

Customer: replied 11 months ago.

thanks:


So: clarification:


 


First: employees do not have UI deducted from their pay. the LLC pays approx 3.4%. But it is true that the LLC does not pay 3.4% of any 1099 or member draw.


 


 


So is the following correct:


If my sole income comes through contract work (1099) or as a member of LLC (K1) - I will never be able to make an unemployment claim.


 


 


The LLC pays into the UI pool but I suppose the reason is that the amount is based on employee wages (w2) and therefore does not apply to anything else except W2.

Expert:  Joseph replied 11 months ago.
Yes, unfortunately, that is correct.

Only employees who were paid as W2 are entitled to receive unemployment benefits, not members of the LLC who were only paid by K1, and did not receive a salary as a W2 employee.
Customer: replied 11 months ago.

to beat this one to death:


 


Joseph has been a partner at Joe's Law Firm, LLP since its inception. He will never be entitled to unemployment benefits.


 


Don't get fired Joe. In this case would you get unemployment insurance on your own?


 


 

Expert:  Joseph replied 11 months ago.
Yes, in this instance, there's no opportunity for Joseph to receive unemployment benefits.

The only time self-employed people or those who are members of an LLC may be eligible to receive unemployment benefits is if they pay themselves a salary (or receive one from the LLC) as W2 earnings. If not, there is unfortunately no basis for them to receive unemployment benefits.

You cannot actually obtain unemployment insurance on your own (at least that I know of, perhaps there is some private company that offers this that I haven't heard of). It is only available through the state and only for employees.
Joseph, Lawyer
Satisfied Customers: 5065
Experience: Extensive experience representing employees and management
Joseph and other California Employment Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • LawTalk

    Attorney

    Satisfied Customers:

    933
    I have 30 years of experience in the practice of law, including employment law and discrimination law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    933
    I have 30 years of experience in the practice of law, including employment law and discrimination law.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Attorney

    Satisfied Customers:

    857
    JD, 16 years experience & recognized by ABA for excellence in employment law.
  • http://ww2.justanswer.com/uploads/PI/PIExpert/2012-7-1_152453_Attorney.64x64.jpg Brandon, Esq.'s Avatar

    Brandon, Esq.

    Lawyer

    Satisfied Customers:

    332
    Has received a certificate of recognition from the California State Senate for his outstanding legal service.
  • http://ww2.justanswer.com/uploads/PH/phoenixrising119/2012-7-26_11214_043.64x64.jpg melissamesq's Avatar

    melissamesq

    Attorney

    Satisfied Customers:

    47
    Represent clients to maximum recovery in employment cases.
  • http://ww2.justanswer.com/uploads/IG/Iggy1001/2013-11-20_23344_JApic.64x64.jpg Joseph's Avatar

    Joseph

    Lawyer

    Satisfied Customers:

    3511
    Extensive experience representing employees and management
  • http://ww2.justanswer.com/uploads/JK/jkiani22/2013-11-18_15348_JacobKiani1copy2.64x64.jpg jkiani22's Avatar

    jkiani22

    Attorney

    Satisfied Customers:

    24
    Attorney
  • /img/opt/shirt.png Legal Counsel's Avatar

    Legal Counsel

    Lawyer

    Satisfied Customers:

    32
    California Licensed Attorney- 29 years- Wages, Hours, Overtime, Discrimination, Wrongful Termination.