posted on August 7, 2001 01:23:50 AM
I just recently quit my full time job to do e-bay full time. A friend suggested that while I was getting the auction business up to speed I aught to apply for unemployement.
I looked up the rules for our state on the internet and you get a certain amount weekly depending on your last salary. If you work during the week they subtract a percentage from your normal check amount. They even count self-employment work's net income as work. I thought "ok..I could do the ebay and unemployment can make up the difference for a few weeks until auctions warm up in the fall."
So...I call to sign up. She asks if I'm working. I said "well I do want to be self employed by selling on e-bay." She said..."That's not self-employment. It would only be self-employment if you were selling for someone else with consignments."
I don't know if I should be saying "good-send me the entire amount then" or if I should be insulted.
I'm pretty sure the IRS won't agree with her but they are both government agencys. What's a girl to do?
posted on August 7, 2001 01:40:55 AM
Geez, you're honest! I wouldn't tell unemployment anything unless I filed quarterly taxes.
Your employer paid into the fund, and now the worker ok'd it. Get the bucks!
When I was in college, I worked 32-40 hours a week every semester except the last one. Yet anytime I wanted unemployment, I had to PROVE that school didn't interfere with me getting a full-time job. Huh? If I'd just had a full-time job, didn't that prove it? Since then I just figure they're screwing people who really qualify, so when you meet their arbitrary garbage, go for it.
On the other hand, you quit your job? Isn't that a problem unless you quit for cause?
posted on August 7, 2001 01:46:29 AM
Actually I did have cause. I ended up with a work related repetitive stress injury in my wrist and elbow. Even though the doctor gave me a slip saying I needed a week off I had to work with my arm in a sling. I got fed up and gave notice. Of course I was nice enough to stay another 4 weeks so they could hire my replacement and I could train her.
posted on August 7, 2001 01:49:26 AM
Well in that case, I'd file for disability! It's usually higher. LOL - I know some people disagree with getting govt money, but I figure the govt doesn't care about taking my money, so when I can get it back, I do.
posted on August 7, 2001 09:42:35 AM
I did not think you got unemployment if you quit your job. I thought you had to lose your job? Anyone know for sure, I am quitting my job in 10 days!
posted on August 7, 2001 10:02:20 AM
Quitting doesn't allow for collecting unemployment. You might have a hard time proving disability if you just quit;that should be something that is worked out before you leave a job. Running an eBay biz on a disability for RSI also sounds a bit less than ethical.
Doesn't sound like the person you spoke to knows what is going on. Would be well worth your time and perhaps some money to get a real legal answer that pertains to your particular state. If the government ever decides to question why you are getting paid to supplement a home business, there could be more problems than you will be able to deal with.
posted on August 7, 2001 10:10:44 AM
I didn't claim a disability and besides they don't think selling on e-bay is a home business. I asked. I was totally upfront with her. I think either maybe your right and she doesn't know what she's talking about or selling on e-bay isn't getting the respect that it should. Which I guess brings up another question. Does everyone who sells on e-bay full time get a business license? That would probobly make it a "legit" business in their eyes.
posted on August 7, 2001 10:19:37 AM
To answer your question...If you are going to declare selling on eBay as your "business" and call yourself self-employed, then yes you need to see to it you have all the licenses and permits needed to run a ligite business.
In my state, I have to file a d/b/a with the county, obtain a business permit from our city (which allows them to put a personal business property tax on me I pay annually) and I have to have a State Sales Tax number to collect sales tax for buyers from my state. I also must make quarterly reports to them. I do not have an Federal EIN because I have no employees, so I can file under my SS# and I make quarterly "estimated income payments" to IRS too.
I highly recommend you talk to an accountant or tax lawyer to find out exactly what you need to become a legitimate business in your state/county/city. It'll cost you, but it's worth it.
posted on August 7, 2001 10:24:42 AM
We don't have state taxes here. So I don't have to worry about that thank goodness. But you also have to pay a business property tax? If you work out of your home and your already paying personal property taxes how does that work. Or is this just a seperate business tax that has nothing to do with the place your working out of?
posted on August 7, 2001 10:46:25 AM
I'm sure each state is different here too, but in our neck of the woods, I get taxed on fixtures, equipment used to produce the income AND any inventory on hand at the end of the year. It is seperate from my real-estate property tax. I do get to fill the form out myself, though, and it has yet to be "challenged". The appraisal district does have the authority to send in appraisers if they deem it necessary. I really have not heard of any B&M having that done, much less home-based businesss. However, I follow ALL the rules just to be safe!
