Question about unemployment insurance for sole proprietor like myself

[mikes425]

I still do a fair amount of freelance work as a sole proprietor so I'm technically "early-semi-retired" for the purposes of the forum: )

I've had a house and business in Michigan for many years...but have kept/resided at a property in a metro area/border community that's on the Michigan-Ohio state line) - my original family home - at the same time..and kept my vehicle, and drivers license registered to that address in Ohio. I work at both properties.

The modified unemployment rules for COVID allow for sole proprietors to apply and claim for benefits. My sole proprietorship is under the Michigan address. My work, and client base is nationwide and almost entirely online-based...it isn't tied to any geographical location per se, so there's really no 'allegiance' to one state or the other as far as that goes.

So here's the thing. In applying for Mich. Unemployment there's a request to verify identification with an "I-9" form. I can substantiate my residency in Michigan, and US Citizenship, and identity as far as birth certificate, S.S. card, etc...but one category of "proof" documents asks for either Drivers License or State ID... or Passport. I have no current passport... so that leaves the Ohio license. Is there any reason that wouldn't be sufficient for satisfying the I-9 requirements and is that any cause for the Michigan Unemployment to disagree with my eligibility? I basically AM employed in Michigan and reside in Michigan. I simply don't have my drivers license here- it's always been kept at the Ohio address.

Thanks for reading through all of this. I'd really appreciate any knowledgeable advice on it, esp. if there are any legal types who visit here...

Mike

 

[PaunchyPirate]

Not meaning to be snarky, but Michigan law mandates you to change your out of state drivers license to a Michigan license when you establish Michigan residency. You might need to do that first in order to file for the unemployment.

 

[mikes425]

Not meaning to be snarky, but Michigan law mandates you to change your out of state drivers license to a Michigan license when you establish Michigan residency. You might need to do that first in order to file for the unemployment.

No, it's not snarky, I appreciate your reply. Well, so if 90% of my work income is in Michigan...and I pay Michigan Income tax, because the property I own is Michigan is where I do the majority of my work.... and the UI office wants to verify my identity with an "I-9" form... which requires, aside from a birth cert. and SS card, either a Drivers License or State ID to prove I am "who i am.." -- I'm wondering why that should be an issue. I.e., if I have a residence in Town A - in Ohio.. but own a property in Michigan and mainly work out of that property - which is true - i am thinking the state of the drivers license's issuance shouldn't be an issue(?)

 

[38Chevy454]

Can you use utility bills in your name for the Michigan house to show residence? What about bank in Michigan?

 

[mikes425]

Can you use utility bills in your name for the Michigan house to show residence? What about bank in Michigan?

Hi, the I-9 document requires a Passport or Drivers Lic/State Id Plus S.S. card /or birth cert. I just decided to send Mich. Unemployment more than that, and included one utility bill showing my name on the Michigan property...First page of State and Fed. Income taxes for my business address at the Michigan house, and a recent W-2 addressed to my Mich address. I decided the Ohio license shouldn't matter so I did use that in my submittal of info. My position on this is, I pay Michigan income tax, and my Sole Proprietorship address is the Michigan address, so the use of the drivers license should only be to verify my identity and have nothing else to do with my eligibility for Mich. unemployment. I believe unemployment should be filed in the state where I perform the work, and that should apply regardless of whether I happen to live across the state line from that location. I can't see how that wouldn't make sense...

 

[aaronc879]

I'm confused. How could you be applying for UE if you are still able to get self employment work if you want to?

 

[Al in Ohio]

I'm confused. How could you be applying for UE if you are still able to get self employment work if you want to?

I agree. Your former employer (yourself if self employed) pays into a chunk of your unemployment claim so I cannot see how you’re eligible.

 

[mikes425]

I'm confused. How could you be applying for UE if you are still able to get self employment work if you want to?

I'll reply in the next post to both questions

 

[mikes425]

I agree. Your former employer (yourself if self employed) pays into a chunk of your unemployment claim so I cannot see how you’re eligible.

Ok so the deal is, as part of the PUA, Sole Proprietors, for the first time, have been included in the terms of the benefits, and this is administered by the individual states UI programs... And, in fact, I already was approved by Michigan -in my case - for an initial claim earlier this year which I closed due to renewed work income as things picked up a bit... I qualified for UI benefits...
Upon filing to reopen a claim, (because work has slowed again) - there was a request for Proof of Identification (i.e., requirements set forth in an "I-9" form)

I know it is unconventional, (what hasn't been in 2020) - but if you look up "PUA" + "self employed" or "sole proprietors" you should find the info. In fact, I just learned from my performers union that self-employed earning 'mixed income' (some from W-2 and some 1099) will qualify for an additional $100/week under the new stimulus act. Details are just being released on that and i'm sure it'll take awhile for the States to figure out how to handle that.

 

[aaronc879]

Ok so the deal is, as part of the PUA, Sole Proprietors, for the first time, have been included in the terms of the benefits, and this is administered by the individual states UI programs... And, in fact, I already was approved by Michigan -in my case - for an initial claim earlier this year which I closed due to renewed work income as things picked up a bit... I qualified for UI benefits...
Upon filing to reopen a claim, (because work has slowed again) - there was a request for Proof of Identification (i.e., requirements set forth in an "I-9" form)

I know it is unconventional, (what hasn't been in 2020) - but if you look up "PUA" + "self employed" or "sole proprietors" you should find the info. In fact, I just learned from my performers union that self-employed earning 'mixed income' (some from W-2 and some 1099) will qualify for an additional $100/week under the new stimulus act. Details are just being released on that and i'm sure it'll take awhile for the States to figure out how to handle that.

I guess some states are different than others. I was self employed this year and can't get benefits. No one at the clinics I work with will answer questions about whether I worked there or not so the State can't confirm my income or anythng else and therefore I get no benefits. I wish there was a simpler system and everyone was treated the same.

 

[mikes425]

I guess some states are different than others. I was self employed this year and can't get benefits. No one at the clinics I work with will answer questions about whether I worked there or not so the State can't confirm my income or anythng else and therefore I get no benefits. I wish there was a simpler system and everyone was treated the same.

Agreed, that's unfortunate. I thought this was part of the federal PUA stipulation and didn't know individual States could opt out of it. It
should be universal AFAIC