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NY Suspends Unemployment Benefits to Blogger who Earned $30/ month

NY State Doesn't Know How to Classify AdSense Income

         

Roseb44170

2:52 am on Oct 9, 2009 (gmt 0)

10+ Year Member



Since I am a grant consultant it really shouldn't surprise me when our government does something - I'll put politely - "interesting"!

I would LOVE to post a link to this article but bar that I'll give you the basic details.

A lawyer who is out of work and collecting unemployment has now had their unemployment cancelled because it was found out that the lawyer was making roughly $1 a day with the Adsense program.

Apparently this is new ground for the state of New York (where the lawyer resides). It seems that they can't decide whether the Adsense money earned is either income or residual.

Now making around $1 a day comes out to $30 a month - and that's enough to get your unemployment benefits cancelled in New York?

Would love to hear what you-all think of this?

dailypress

5:33 pm on Oct 22, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



that sucks! I think she should have setup a Google account for his husband or some member in his family and have that member transfer the earning later on.

Or

Put a hold on his payment til he found a new job!

does either one work?

Demaestro

5:51 pm on Oct 22, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



In Canada anytime you are getting benefits they give you an amount you are allowed to earn without affecting your benefit.

For example, canada student loans will give you $850 a month, but will allow you to earn an additional $200, anything above $200 would be deducted from the $850.

Welfare, WCB, many other benefits programs here work like this. It is supposed to allow for people to earn without committing to a job. So if you wanted to babysit or walk dogs or mow lawns, even adsense then you can.

I can see so many solutions that make sense. Hard to believe that that state hasn't come up with something that would cover minor incomes like this.

surfer67

4:09 pm on Oct 23, 2009 (gmt 0)

10+ Year Member



If you've been self-employed full-time and run out of work, you do not qualify for any benefits. Unemployment insurance protects employees only....

I would like to know if they withhold unemployment insurance tax from the self-employed. If they do, that would be plain wrong.

LifeinAsia

4:28 pm on Oct 23, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



In the U.S., unemployment insurance is paid by the company. "Self-employment" taxes paid by individuals are only payments for FICA/Medicare.

Just imagine all the scams that would go on with people saying they were self-employed for a short time, then suddenly "unemployed."

signor_john

4:37 pm on Oct 23, 2009 (gmt 0)



Let's not read too much into this. The State of New York has merely suspended the woman's unemployment benefits while it figures out the legal situation. That's obviously inconvenient for the ex-lawyer/blogger/AdSense publisher, but it doesn't mean she'll never get her benefits or that earning $1 a day from AdSense automatically disqualifies a laid-off worker from unemployment compensation.

purplecape

5:49 pm on Oct 23, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



signor_john, but they went farther than that with me, and actually decided to stop paying my benefits (see my earlier post). I had to appeal and go before an admin. law judge to get this overturned.

Also, the NY DOL staffer introduced a number of "precedents"--previous decisions about benefits. One of these involved cutting off benefits to someone who had paid one of those scam companies that sets up cookie cutter websites for a fee and then sells traffic. The person made very little money from this and lost money overall but this was taken as evidence of trying to set up a business so they lost benefits. Points to very narrow filter. To my mind, that person had simply been scammed and needed advice, and should not have been cut off from benefits.

agent99

9:44 pm on Oct 29, 2009 (gmt 0)

10+ Year Member



It's ridiculous for NY to consider minimal adsense payments as income for unemployment purposes. Something else to consider: If she's paying taxes on her blogging, she may have expenses to deduct against that income. The adsense payments would be revenue. But what about her web hosting expenses? Or her blog hosting expenses? And if she pays for a stats service? Or her domain name costs. All of those could easily wipe out her itty bitty gains.

She may even have a loss when expenses are considered. Negative income.

Next thing you know they'll go after people selling their possessions on eBay.

LifeinAsia

10:44 pm on Oct 29, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Don't give them any ideas!
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