Temporary work can be an excellent way for unemployed individuals to make a positive impression upon an employer and consequently, be hired for a more permanent job in the future. However, many unemployed workers are financially strapped and fear the loss of their unemployment benefits if they take on temporary or contract positions. Here’s information on how temporary jobs impact unemployment benefits, how unemployment compensation is affected, and reporting requirements.
How a Temporary Job Impacts Unemployment Benefits
What happens if you accept a temporary job while receiving unemployment benefits? States have different policies on how temporary employment is handled. So, you should contact your state unemployment office for a definitive answer on the impact on your benefits.
Reduction or Elimination of Benefits
In general, your unemployment benefits will typically be reduced or eliminated during the period of your temporary work, depending on the level of pay for your temporary job. Usually, you will still be entitled to the difference between your pay and the value of your unemployment benefits, if you earn less than the total amount of your unemployment benefits. For example, if you earn $200 and are entitled to $400 in unemployment benefits, you will typically still receive $200 in unemployment compensation. However, if you earn $400 or more in that temporary job, then your benefits would be suspended. Your benefits will generally be based on the preceding period of temporary work. State employment laws vary, so temporary employees may still qualify for unemployment benefits once the temporary job has been completed.
How To Report Your Earnings
The income that you earn while on unemployment benefits is reported when you file your weekly claim. The form will ask if you have worked during the week you’re filing for, and there will be a section to list how much you earned. Reporting requirements vary by state. For example, in Georgia, you must report your gross wages for each week you work and claim unemployment benefits, even if you have not been paid for the work yet. This includes part-time or temporary work. In Maine, you’ll be asked if you performed any services for an employer, had earnings from odd jobs or self-employment, or received bonus or severance pay. If you don’t report your earnings, you can be required to repay the unemployment compensation you received, or could even be charged with fraud.
Eligibility for Unemployment Benefits After Temporary Work
Eligibility for unemployment benefits is based on several factors, such as the duration of the employment, the wages earned, and the reason for the unemployment and/or reduced hours. As long as you are unemployed due to no fault of your own and you are actively seeking work, you may be eligible for unemployment benefits. Job seekers must typically accept any suitable employment, so turning down an opportunity can disqualify them from claiming benefits.
Unemployment Eligibility for Seasonal Workers
Similar to temporary workers, seasonal workers are employed for short, specific times of the year due to weather-related or tourist-related industries. In some states, seasonal workers may not meet the criteria to be eligible for unemployment benefits.
Unemployment Eligibility for Independent Contractors
Independent contractors typically cannot claim unemployment benefits like temporary and full-time workers can. However, expanded unemployment benefits were available to self-employed workers, gig workers, and independent contractors during the pandemic.
Temporary Work and Total Unemployment Benefits
The amount of compensation you can receive through unemployment benefits is typically calculated based on your wages during a 12-15 month period leading up to your first day of unemployment. This time frame is considered the “base period.” It is advantageous to maintain employment regularly during this period, as it lowers the total amount, which lessens your eligible compensation rate. Check the details of how to handle it with your state unemployment office.
Quitting a Temporary Job
If you quit a temporary job without a just cause, you will generally not be eligible to resume benefits. If you complete the term of your temporary work, you will often be able to resume unemployment benefits as long as your benefit period hasn’t expired.
Accepting Suitable Employment
Some states have suitable work requirements, which require unemployed workers to accept a position that is considered suitable. However, what is considered suitable employment varies from state to state. So, check with your state unemployment office before turning down a job offer, even if it’s for a temporary or contract job, rather than a permanent position. In general, suitable work is determined by compensation, working conditions, health and ability, required skills, and commuting distance. In some states, union workers registered with local hiring halls are considered exempt from these suitable work requirements.
