Pampered Chef and Claiming Unemployment

[chefsteph07]

If you are doing Pampered Chef, and claiming unemployment, does anyone know the legalities of filing at the end of the year and not losing unemployment benefits?

 

[loreo]

My understanding is that you need to claim any income earned while on unemployment. For our state, that is every two weeks.

 

[chefsteph07]

My understanding is that you need to claim any income earned while on unemployment. For our state, that is every two weeks.

But since you don't claim anything till the end of the year, how does that work?

 

[chefann]

You have to report any income that you were paid during the week when you call in to the unemployment system. Usually, your unemployment amount will be reduced by the amount that you were paid for that other work (PC).

 

[chefsteph07]

Ok, I have a recruit lead who is claiming unemployment and that was her first question, she doesn't want to lose her bennys so she asked me how that would work for her. I told her what an average show is and basically don't go over 2-3 shows a month and hopefully she won't make more than her requirement. I know she said she can make SOME money, but it can't go over a certain amount w/o having her money reduced.

 

[BethCooks4U]

You need to call your unemployment office or an attorney and ask how you determine direct sales income since the deductions reduce the commission.

 

[Symara]

I claime UE in KY. They just give you the difference. I was working a serving job while the appeals were going through, but still had to claim what I was making every week. They paid me the difference. Every state may be different though.

 

[chefsteph07]

I claime UE in KY. They just give you the difference. I was working a serving job while the appeals were going through, but still had to claim what I was making every week. They paid me the difference. Every state may be different though.

So, as long as you don't go OVER what they are paying you, you are ok?

 

[Symara]

What they did was look at what I made, took 80% of it and subtracted that number from my benefits.

For example.
Benefits 400 a week
made 100 serving
100 * 80% = 80
400-80 = 320

So they would pay me 320 a week.

 

[colegrovet]

check the states web page for unenployment it should have something there..

 

[Symara]

check the states web page for unenployment it should have something there..

Yes, please do, it may be different then KY. It's state run, so may be different.

 

[heather223]

Steph- When you find out what Ohio does, can you let me know? I have a team member with a possible recruit that was asking about this.

 

[chefsteph07]

Steph- When you find out what Ohio does, can you let me know? I have a team member with a possible recruit that was asking about this.

Will do! I just spoke w/ her earlier today, she wants to sign, we had a show scheduled for me to do on March 21, but I told her about the incentive for the rebate and now she wants to sign and make it her own party...she says she'll get $1250 with her own party and wants to ensure she gets the rebate! (man, I hate when I lose big spending guests! LOL) She stated she was going to call unemployment on Monday and make sure she doesn't go over the maximum of what she can make and she'll get back to me in the afternoon then.

 

[D Levad]

I would love to hear anything about the state of Iowa. I was under the impression that you didn't have to claim on this type of direct sales. If you did the show in a certain week and the next week you filed partial unemployment and then you just happen to get paid in the week you were claiming this does not seem quite right. You actually did the work a few weeks ago that you got paid for. I am not sure if I am saying what I am trying to say. We go some weeks with a full week and some weeks we might draw partial benefits. I know we claim what we actually worked at our full time jobs that week on unemployment but as the month goes by depending on sales your PC sales commission could vary as well. Another man in my area has his own store in a mall and he does not claim any earnings on that at least he says that anyway.. This will be interesting .

 

[pampermejolene]

I'm in California and the way it works here is I have to claim the money I make when I make it (not when it is distributed) and the benefits from Unemployment get decreased for that check. She will likely have a "problem" when she writes it on the original form when she applies (though it sounds like she might already be receiving benefits). I had to do a telephone interview because they were confused that I was self-employed and claiming unemployment. I explained that it is my business but I do it as a hobby.

 

[heather223]

Will do! I just spoke w/ her earlier today, she wants to sign, we had a show scheduled for me to do on March 21, but I told her about the incentive for the rebate and now she wants to sign and make it her own party...she says she'll get $1250 with her own party and wants to ensure she gets the rebate! (man, I hate when I lose big spending guests! LOL) She stated she was going to call unemployment on Monday and make sure she doesn't go over the maximum of what she can make and she'll get back to me in the afternoon then.

Thanks Steph- My consultant is doing the person who asked show this coming Saturday and I want to be prepared with the answers. I hope she signs because it would put me halfway to director under the new plan. Now all I need to do is get 2 more recruits of my own and here I was worried that my team would do the recruiting they need too!

 

[D Levad]

Here is what I found on the unemployment web site for
Self-Employment
Income from self-employment is not considered
wages and is not deducted from unemployment
insurance benefits. However, you must still meet
the eligibility requirements of being able, available
and actively looking for work and willing to accept
suitable work. If it is determined your self-employment
prevents you from accepting suitable work,
you may be disqualified due to being unavailable
for work. Ask for more information

 

[KellyRedHead]

I also have someone considering PC but on unemployment.
I live in New York and my director found something for me, and it also said something about expenses being deducted from the PC income I believe. I will find it and post it back here.
But this is a VERY good question (My director said this too when I asked her) because we are going to encounter more and more people on unemployment that might be interested in PC.

Kelly V.

 

[chefsteph07]

Update:

My girl who is on the unemployment signed a few days ago...she said that as long as the income she reports weekly does not go over her benefits, she is ok. If it happens to go over for that week, she just loses that week's benefits of the full amount.(if she makes more than she is receving, she does not lose benefits or have to "pay back" what she made over) She has decided that she is going to submit all orders for the month onto ONE week, so she only loses that ONE weeks pay, rather than splitting it up over the month. Hope it makes sense that way I am writing it. She is coming to our monthly meeting on Tues, where I will ask her more in depth about it and I'll report back what I find out.

 

[D Levad]

Update:

My girl who is on the unemployment signed a few days ago...she said that as long as the income she reports weekly does not go over her benefits, she is ok. If it happens to go over for that week, she just loses that week's benefits of the full amount.(if she makes more than she is receving, she does not lose benefits or have to "pay back" what she made over) She has decided that she is going to submit all orders for the month onto ONE week, so she only loses that ONE weeks pay, rather than splitting it up over the month. Hope it makes sense that way I am writing it. She is coming to our monthly meeting on Tues, where I will ask her more in depth about it and I'll report back what I find out.

It will be interesting to see what she says because is she deducting postage, millage, food expenses from her income? The way my state reads is self employment is excluded so I think I am safe. I am drawing every week so I am kind of doing what she said anyway.. submitting shows on the weeks I worked instead of the weeks on unemployment

 

[D Levad]

I should have said not drawing every week.. sorry

 

[chefsteph07]

It will be interesting to see what she says because is she deducting postage, millage, food expenses from her income? The way my state reads is self employment is excluded so I think I am safe. I am drawing every week so I am kind of doing what she said anyway.. submitting shows on the weeks I worked instead of the weeks on unemployment

I don't know how she's going to do it, I'm going to talk with her this week and I'll get back to you on it!

 

[etteluap70PC]

I am looking for info for my mom who is on UNemp.

Look what I found...

Home-run businesses become more popular as unemployment rises

 

[Flamingo]

What a great article I think that I might download it and share at my cluster meeting and also put it in my recruiting book...Thanks

 

[pamperedlinda]

I'm confused here. Why wouldn't someone want to make money and get off of unemployment? What's the difference in having a full-time job where you work your tail off for a decent income and having a PC business and working your tail off for a decent income? forgive me, but I've never been on unemployment so I don't understand the issue. Are these people trying to take advantage of the system or is there a legitimate reason behind all of this? I'm not trying to be arguementative, I just don't understand. Thanks.

 

[pampchefsarah]

Linda, that was my first thought, too, then I realized it would take alot to make enough money to survive on just PC commission, especially for a brand new consultant. For example, if you receive $500/week unemployment (I have no idea if that's a reasonable number or not, so if I'm way off, please don't hurt yourself laughing), it would take $2500 in commissionable sales PER WEEK to earn that much.

Maybe once promoting to Director and above it would be possible to depend solely on PC, but not as a newbie.

 

[chefsteph07]

Linda, I completly agree w/ you about the unemployment thing..I don't understand why someone would stay on it until they exhausted all their benefits to start looking for a job. I think it is only paying 50% of income as is, so why not look for another job?

 

[etteluap70PC]

I see what you are saaying but... many people are looking for work but the "security" of the unemployment the "garuntee" of it is what has some people scared. My mom for example is 60. She has skills but no degree. She was a hair stylist untill 5-6 years ago when she had some health issues. While she loves PC and is interested it is scarry for her to risk loosing a garunteed income on something unsure.

I know I will probably get jumped on about how "if they really want to work it they can make the full time income" which is true to an extent. But it still is a risk (to them anyway) and it is their choice what they do with their life.

I know for my situation with my mother I want to give her the best advice possible. And want to make sure she knows all the facts.

 

[chefsteph07]

Does anyone else know anything about this?
Is self employment exempt from unemployment?
If you are on unemployment right now and doing PC or another DS company, are you claiming that?

 

[esavvymom]

Does anyone else know anything about this?
Is self employment exempt from unemployment?
If you are on unemployment right now and doing PC or another DS company, are you claiming that?

I can't say for sure, but I would say probably- yes- unless you've been paying into the Unemployment Funds for your state. Traditional employers have to pay each month into the Unemployment for their state based on the payroll. As self-employed individuals, that wouldn't be happening unless you are the boss of that company and are including your own payroll in the overall.

A payroll accountant should know for sure, or find the Unemployment Agency website for your state and see if they have more details. (Our state's was called the Employment Security Commission. I had to file the papers for my former-employer when I was his office assistant.)

 

[pckellyd]

I am currently claiming UE, have been since November of 08. When I was considering PC I called and talked to them. In PA you are to deduct all of your expenses that have to do with the parties and claim then income that falls during the week you get paid. This may sound like cheating the system, but once I deduct food expenses, postage, business supplies, etc for each show I'm not making nearly enough to come off UE. My goal is for my business to be successful enough to replace my UE amount by the time it ends. Slowly but surely I'm getting closer.

Through UE you are allowed to make up to a certain amount each week (around 20% of your check for the week) w/o it taking away from what you recieve. After you go over the 20% your weekly benefit decreases dollar for dollar. I don't think I'm abusing the system since I'm using it for what it's there for. I don't limit my shows because I'm afraid I'll make too much money. I do what I can and still have never made enough on a payday to impact my benefit after subtracting expenses.

 

[Chefgirl2]

Thanks for this thread. I have two people in the same situation.

 

[scottcooks]

Don't Do It!

If you are recruiting someone who is worried about losing unemployment benefits, you are recruiting the wrong person. Either they begin and want to go as far as they can as fast as they can, or they are starting with one foot on "kitnapper" and the other on a banana peel... It's a frame of mind.

The welfare frame of mind is "don't mess up my benefits". The better recruit frame of mind is "get better benefits".

Could someone do a couple shows a month and slide under the radar? Maybe for a while, but do you want to take part in that?

Sorry-- I'm not trying to be snobby or disrespectful, but it's like a recruit lead saying they only want to do shows within a few block radius, or only from online sales, or something. I would not support it.

The whole point of unemployment is to help them while they get back to work. Supporting someone to 'only work enough so ...' is abusing a system that is meant for something else.

 

[kcmckay]

I also have someone considering PC but on unemployment.
I live in New York and my director found something for me, and it also said something about expenses being deducted from the PC income I believe. I will find it and post it back here.
But this is a VERY good question (My director said this too when I asked her) because we are going to encounter more and more people on unemployment that might be interested in PC.

Kelly V.

I didn't see anything posted about this and since I'm in NY I'd like to know what you found. I want to be able to have an informed discussion so that my recruit will be willing to sign after her party or even before if she wants that show to be her grand opening!

 

[KellyRedHead]

HI Katie-

I am not sure what else she found out, other then what i mentioned. Your best bet would be to call the unemployment office.
The one I had interested in PC didn't go any further and she never signed.

If I find anything out I will pass it along to you.

Kelly V.

 

[cookingwithdot]

It varies from state to state. I claimed my commission for the first time last week, although I became a consultant on 9/28. Technically, I didn't not EARN any money until I hosted my first party. So once I knew the sales and could determine my commision, I claimed it. And yes, they had a lot of questions and I had to fax them back a lot of paperwork once I told them I was working in self employment. I live in WA and this is how they do it:
Example
UI check - $500.00
claim $155.00 commission
they take $5 off the top, so $150.00, then they multiply by 75% & deduct from UI check.
500.00
-112.50
387.50 for checkIt's a confusing formula - easier if it were just $1 for $1. I was wondering if I should claim $0 because technically, my net earnings are a negative amount if you consider what I have put into it ...AND I am currently looking for a full time job, so I plan on staying with PC even after I go back to work.

 

[dkitten13]

I thought this might be a neat addition for people to keep in mind...I read on CNN but can't find it now -something like 7000 people a day are losing unemployment benefits. Another thing to reaffirm that you should never dismiss a lead!

 

[pckellyd]

I think it's really unfair to dismiss someone who is concerned about loosing their unemployment. For most of us, we've had steady paychecks for a long time. Going on unemployment we're already loosing approx 40% of our income. Loosing more is a deal breaker for many people since transportation, food, and clothing for my job cost a heck of a lot less than 40% of my income. Until I built my business to a steady income, which I am still working on, loosing that guaranteed unemployment if i had nothing coming in from PC would have been a deal breaker. Also, if they looked at it in black and white terms (ie commission check is 200, so we deduct 200 from your uc) that wouldn't have worked either since I have money spent in supplies and postage for every show. Luckily in my state I am allowed to deduct expenses from my commission paid, so that if I don't make enough to pay my bills I've still got the uc safety net. I don't think keeping that in mind is a bad thing.