What Happens if You Get a Job While on Unemployment?

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In a Nutshell

If you recently got a part-time job or you make less than your monthly benefit amount, then you still may be eligible for benefits. After you’ve properly celebrated your new opportunity, make sure you check in with your state unemployment office’s eligibility requirements. You’ll want to see if you have to report getting a job. Read more to learn about how unemployment insurance benefits can supplement part time wages to keep your finances on track.

If you’ve been unemployed and are able to find suitable work and accept a job offer, congratulations! Unemployment benefits are meant to be a temporary support until you get back on your feet. Extra congratulations if your new job is full time or pays more than your weekly benefit amount.

If your new job is part-time or pays less than your benefit amount, you should still feel good about what you’ve accomplished. But you might have to stay on top of things for a minute. After all, if your earnings from your new job are less than your weekly unemployment benefit amount, you should still get that money by prepaid debit card or direct deposit into your bank account. You worked for it and you earned it.

Reporting Requirements

Some states require that you notify them once you get a new full-time job and no longer need to collect unemployment benefits. Other states don’t require notice from claimants. They might only require that you stop filing your routine benefits claim or benefits request. This may be a weekly or bi-weekly claim, depending on the state. States like California don’t require you to notify the unemployment office that you went back to work. After a period of inactivity, the unemployment agency will close your unemployment claim.

If you recently got a part-time job or you make less than your monthly benefit amount, then you still may be eligible for benefits. Keep track of your gross earnings (your income before taxes are taken out) and continue filing your unemployment claim for weekly benefits. The state unemployment insurance program will then determine whether or not you're eligible for further benefits.

If your new job is a temporary job, no matter whether it's part-time or full-time temporary work, you should still make your weekly or bi-weekly claim. This will ensure that you will receive unemployment benefits without gaps after your temp job ends and help you keep a steady income stream for you and your family while you’re unemployed or partially employed. Your unemployment insurance benefit is based on the work you do during your base period, so it doesn’t matter if it’s work for one employer or several employers.

Reporting requirements vary from state to state. It’s helpful to check your state’s reporting requirement for when a claimant gets a job while receiving unemployment benefits. Your state’s unemployment insurance agency or your state’s department of labor has handbooks, FAQs, and resources available online as well as in the unemployment office and your local workforce center.

Pandemic Unemployment Assistance and the CARES Act

Prior to the coronavirus pandemic, independent contractors and self-employed individuals were not eligible for unemployment assistance. However, the Pandemic Unemployment Assistance (PUA) Program and the CARES Act extended benefits to workers in these categories to help them deal with the negative economic effects of the pandemic. Many became eligible to receive at least partial benefits if they were working but earning less than they would in a normal year.

If you’re self-employed or an independent contractor who is covered under the Pandemic Unemployment Assistance (PUA) program, be sure to report your earnings to receive benefits.

The CARES Act also added an additional temporary weekly benefit for unemployed workers. But at this point a lot of states have ended this additional benefit and many are bringing back more restrictive reporting requirements about reemployment activities such as reporting work search contacts or redefining what constitutes suitable work. Stay on top of things and be sure that you are reporting what you are required to so you can avoid unpleasant surprises.