Q. I was fired from my job last week. When I tried to file for unemployment, they said I couldn’t claim because I was self-employed.  I thought unemployment was for this reason.  What do I do?

A. Unemployment benefits are designed for employees who are unemployed, under-employed, downsized, rightsized, or fired.  If you were actually an employee, then your employer should have been paying unemployment tax to the state where you performed your duties.  You would then be given benefits by the state if one of the above-listed events actually occurred.

If you are actually a contractor or self-employed, then you are really out of luck.  The problem with your post is that it looks like you assumed you were an employee, but were classified as self-employed.  This may be a sneaky trick by your former employer not to pay taxes for your situation.

There are specific guidelines as to what actually qualifies as an employee vs. and independent contractor.

  • Did the establishment provide you an office?
  • Were you required to supply your own tools?  This could mean anything from a computer to actual tools used by laborers.
  • Were you issued a 1099 at the end of the year instead of a W-2?  While this one doesn’t actually prove anything, it does show the intent of the hiring organization.
  • Who controlled the work you performed?
  • Who set your hours?

Companies can get into all kinds of trouble for taking the easy route and calling their employees something else.  Check with your State’s Department of Labor for details.