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rvlaw, Attorney
Category: Business Law
Satisfied Customers: 8386
Experience:  NYC Trial Attorney 30+ years; Law professor ; BUSINESS LAW; CONTRACTS; TORTS; Arbitrator
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I live in New York, I run a side business for which Im not

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I live in New York, I run a side business for which I'm not taking any income. I'm being laid off after 13 years at the end of Dec. Can I collect UI or will I have to close the business

Hi and welcome,


You talk about a side business and your concern about having to close it. I have a couple of questions. You say you aren't taking income. You're NOT saying that the business is not profitable. UI may suspect that you are deliberately postponing taking income until the future and that may interfere with getting UI benefites. One of the questions you will be asked on your UI application is about other sources of income. You can't artificially create $0 income by simply postponing. And you can't lie.


What is the job you're being laid off from and why?



Customer: replied 4 years ago.


For about 5 years we put everything back into the Photography business. I loaned my business $15, 000 two years ago for equipment which hasn't been paid back yet.

I'm a computer Tech that was contracted to a company. The company no longer has money for me. My company is looking for another job site but nothing yet.

You have just added a very important factor. You are not a salaried employee who gets a W-2 for your tax returns. You are an independent contractor who gets a 1099. What I just said has nothing to do with the side business. Your being an independent contractor where the company that used you has no more money for you......doesn't mean you were "laid off". Laid off applies to a W-2 employee of a company that is perhaps downsizing. You can't even fill out a claim for UI benefits under your circumstances.



Your only option is to continue to operate your side business and look for a W-2 job and/or another independent contractor job for which you will receive a 1099.




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Customer: replied 4 years ago.

Sorry I wasn't clear. I am salaried employee that recieves a W2. The company I work for contracts me out to other companies. In this case I was at Dunlop Tire in Buffalo for 13 years but as an employee of Globalquest Solutions Inc.


I'm glad that we are clear. You can apply for UI benefits BUT the application is going to ask if you have any other business or source of income. You must tell them the truth.

As I said, they will probably investigate the status of the photography business. If they feel it is useless as a source of business you will probably get the full UI benefit. But if they investigate and find out that you artificially creating a situation where you are not getting money now but can or plan to in the future, they will reduce your benefits

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