Do I Need to Report Income as an Independent Contractor to Unemployment?
Gross income earned in self-employment must be reported for the week in which the wages were earned, not paid. A self-employed person is not eligible for benefits when engaged in self-employment for the majority of the time, even if no money is earned.
Any work and earnings not reported may result in a fraudulent overpayment determination.
Unemployment compensation fraud is a third-degree felony and is subject to prosecution by the State Attorney. A third-degree felony is a crime punishable by a maximum penalty of $5,000 and up to five years in prison.