They're requesting refund due to filing business entity during unemployment (collect, file)
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I collected unemployment for losing my job due to the 2008 recession. I filed for a business name in case I was able to do business because jobs were difficult then.
I never was able to do much with It because i was looking for work and found a job a year later in the same field which I thought was pretty good becAuse I have a masters and that was harder to come by.
Now they want a full refund for the year because they say I was a business owner during unemployment and wasn't actively searching for work.
I have no business income on my taxes.
I'm so upset about this but trying to stay positive. I'm awaiting a telephone hearing for an appeal.
I collected unemployment for losing my job due to the 2008 recession. I filed for a business name in case I was able to do business because jobs were difficult then.
I never was able to do much with It because i was looking for work and found a job a year later in the same field which I thought was pretty good becAuse I have a masters and that was harder to come by.
Now they want a full refund for the year because they say I was a business owner during unemployment and wasn't actively searching for work.
I have no business income on my taxes.
I'm so upset about this but trying to stay positive. I'm awaiting a telephone hearing for an appeal.
Go through with the appeal and tell them exactly that. No need to be upset.
What state are you in? You may have been flagged by the system for a manual review. Definitely go through the appeal and collect any business filings or documentation that indicates there the business had no revenue. Make sure you indicate that you set up the business as a backup plan and you continued to search for jobs. Good luck.
Seems you were unemployed in 2008. They are coming to you now after so long for a refund?
I find it ridiculous that just by registering a business name, one could be questioned about unemployment. You could very well be registering a business name, so that companies that want to retain you as a consultant (temp work on 1099) on 1099, could do so.Though I know you could still do it, without registering a business, but still, maybe you wanted to give it a professional look to it. Also, it could be that you liked that name and wanted to register it and use it whenever you did business in the future.
Wish you the best for the appeal and let us know how it went.
I found this on the New Jersey website (I am not from NJ):
If you are an officer of a corporation, or you own more than a 5% equitable or debt interest in the corporation, and your unemployment claim is based on wages with the corporation, you will not be considered unemployed during your term of office or ownership. Since you are not considered unemployed, your claim will be held invalid and you will not receive benefit payments.
[LEFT]Equitable Interest means that, as an employee, you own more than 5% of the capital stock of the corporation, either by yourself or with your spouse.
Debt Interest means that, as an employee, you hold debt from the corporation that exceeds 5% of the total corporate debt (except trade payables).
Part-Time Corporate Officer/Owner
[LEFT]If you operate a part-time corporate business while you are employed full-time, you may be entitled to unemployment benefits if you lose your full-time job. This is because you would be able to establish a claim based on your full-time work (your earnings with the corporation would not be included on your claim). Your earnings from your part-time corporate business would be deducted from your "partial benefit rate."[/LEFT]
[LEFT][CENTER]Termination of Corporate Officer/Owner Status[/CENTER]
[/LEFT]
[LEFT]A corporation is considered viable unless it has permanently ceased operations and filed for formal dissolution in accordance with the New Jersey Business Corporation Act or has filed for bankruptcy under Chapter 7 of the United States Bankruptcy Code.
Upon termination of corporate officer/owner status, you may be entitled to unemployment benefits. You must produce written evidence including one or more of the following:[/LEFT]
[LEFT]•A signed statement from the corporation verifying the termination of corporate officer status.•A copy of the Tax Clearance Certification and a copy of the application for final dissolution.•Deed of assignment of assets for the benefit of creditors.•A copy of a petition to bankruptcy court under Chapter 7.[CENTER]
State Plan Temporary Disability Benefits[/CENTER]
[/LEFT]
[LEFT]A corporate officer/owner may file a claim for State Plan Temporary Disability Benefits, provided that the period of disability begins within 14 days of the last date worked.[/LEFT]
[/LEFT]
I found this on the New Jersey website (I am not from NJ):
If you are an officer of a corporation, or you own more than a 5% equitable or debt interest in the corporation, and your unemployment claim is based on wages with the corporation, you will not be considered unemployed during your term of office or ownership. Since you are not considered unemployed, your claim will be held invalid and you will not receive benefit payments.
[LEFT]Equitable Interest means that, as an employee, you own more than 5% of the capital stock of the corporation, either by yourself or with your spouse.
Debt Interest means that, as an employee, you hold debt from the corporation that exceeds 5% of the total corporate debt (except trade payables).
Part-Time Corporate Officer/Owner
[LEFT]If you operate a part-time corporate business while you are employed full-time, you may be entitled to unemployment benefits if you lose your full-time job. This is because you would be able to establish a claim based on your full-time work (your earnings with the corporation would not be included on your claim). Your earnings from your part-time corporate business would be deducted from your "partial benefit rate."[/LEFT]
[LEFT][CENTER]Termination of Corporate Officer/Owner Status[/CENTER]
[/LEFT]
[LEFT]A corporation is considered viable unless it has permanently ceased operations and filed for formal dissolution in accordance with the New Jersey Business Corporation Act or has filed for bankruptcy under Chapter 7 of the United States Bankruptcy Code.
Upon termination of corporate officer/owner status, you may be entitled to unemployment benefits. You must produce written evidence including one or more of the following:[/LEFT]
[LEFT]•A signed statement from the corporation verifying the termination of corporate officer status.•A copy of the Tax Clearance Certification and a copy of the application for final dissolution.•Deed of assignment of assets for the benefit of creditors.•A copy of a petition to bankruptcy court under Chapter 7.[CENTER]
State Plan Temporary Disability Benefits[/CENTER]
[/LEFT]
[LEFT]A corporate officer/owner may file a claim for State Plan Temporary Disability Benefits, provided that the period of disability begins within 14 days of the last date worked.[/LEFT]
[/LEFT]
This segment of the NJ UI rules is not relevant to the OP. It only pertains to a corporate officer/owner -- or someone with an equity interest in a corporation.
The OP makes no mention of ever have incorporated a business -- which is a legal process separate from registering a business name. Registering a business name can be done for a range of different types of businesses beyond corporations -- such as an individual proprietorship.
I collected unemployment for losing my job due to the 2008 recession. I filed for a business name in case I was able to do business because jobs were difficult then.
I never was able to do much with It because i was looking for work and found a job a year later in the same field which I thought was pretty good becAuse I have a masters and that was harder to come by.
Now they want a full refund for the year because they say I was a business owner during unemployment and wasn't actively searching for work.
I have no business income on my taxes.
I'm so upset about this but trying to stay positive. I'm awaiting a telephone hearing for an appeal.
Welcome to the real world of owning a business. Double taxes but the feds. Local and state taxes due every month. My business and I both pay taxes and I can't get unemployment benefits if I wanted to.
I hope that you closed that business down properly because if not, your state will also tax you for every year that it's still open.
I have several corporations and want to keep the names so I file my tax returns every year showing I make nothing from them but still pay the state $25 for each one of them.
What's funny is if I don't file the proper paper work with the state each year they assume that I made money and send me a tax bill based on the last year it was open.
The first year I closed one corp down and didn't file it with the state I received a tax bill for almost 10K. My account took the bill and filed the proper paper work and the state still removed the money from my personal checking account. Took me years to clear it up and cost me a lot of money paying my account to fix what my state did.
I hope you can get this straight and I wish you the best of luck but I have a feeling that you will not win this after what I went through.
Leester, One more thing...you don't want to say you put in any effort towards doing business. From what I understand, that even an hour or less in a day, night or weekend, devoted towards trying to do business could disqualify a person from unemployment benefits. Similarly, printing business cards, renting space, having a website could also affect the umemployment benefits.
Have you retained an attorney to advice you in this regard?
This kind of thing shows just HOW broken the whole system is. They WANT you off unemployment but the smallest steps you take to achieve that, such as enrolling in a pt course (even just online or at night) to further your skills (unless approved by THEM), registering a business name as a first step to MAYBE achieving some income, taking a pt temp job, are all red flags which cause them to start deciding you shouldn't have ANY UE benefits.
So much for the folks that are happy to spout "get more education/start a business" blah blah blah........
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