Hi! Am I eligible for NJ unemployment benefits working as an IT contractor?

Question

I am currently working a contract-to-hire position in NJ, but am concerned if I have unemployment benefits just in case I am not hired.

Answer 1

If you are working as an independent contractor now, hoping to be hired later, you probably won't be eligible for UI if you aren't hired. If the contract is an employment contract, not an independent contractor, the you may be eligible. If you are working for this company through a placement or temp agency, then you would probably be eligible as an employee of the agency, not the company you are working at.

Answer 2

My canned explanation to clueless independent contractors seems to get posted every day. This is the third time today.

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. If you are required to show up for work--personally--at a particular time, punch the clock, use the employers equipment and are paid an hourly rate, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. There should be no difference in your status regardless of how long you work.

Answer 3

The reason companies hire contractors is so they don't have to pay for expences like unemployment taxes, social security taxes, workmans comp, health insurance, 401k, etc.

If no unemployment taxes are paid you can't draw unemployment (self employed aren't eligible)

Answer 4

Independent contractors are not eligible for unemployment benefits.