Two employers / one job

[bugsmom18]

What is the name of your state (only U.S. law)? Iowa

I'm not sure if I have this in the right area but here's the background.

I work full-time for two insurance agents. The agents are considered self-employed so I get two separate paychecks (one from each). I handle the payroll tax paperwork, work comp, etc. They each have their own work comp policies, pay SUTA and FUTA separately as well. The agents may be retiring in a few years and I think I'm going to have a problem with unemployment because I'm technically not full time for either agent. (32 hours per week: each agent pays 16 hours/week). Am I right in this thinking? If so, should I request that one agent pays me for all the hours and just have the other agent reimburse for half of all the costs? What legal issues might arise from a situation like this (either the way I'm getting paid now, or if one agent paid me). I hope this isn't confusing and if there are any questions, please let me know! Thank you for any help! What is the name of your state (only U.S. law)?

 

[commentator]

While you are doing all this payroll and bookkeeping for these guys, do you pay in to the state of Iowa unemployment taxes for yourself? I would be extremely surprised if you did, because the state does not require a business with one employee (such as each of these two agents) to pay in unemployment taxes. They can be doing so, but are not required by law to do it.

If not, you are not a covered employee. Even if the agents both quit, or one quits and the other fires you, regardless..if the money's not been paid in, if neither of these people is a "covered employer" under the unemployment system in Iowa, then no unemployment for you.

If they do both pay in, you would be reporting the wages each quarter that you made for one, and also for the other, and if you were to file a claim, your wages from all the covered employers you worked for would be pulled in to set up your unemployment claim. It doesn't matter a flip whether you're working full time for one or part time for both.

Check with these people at the website below. Unemployment insurance is very different from what most people think. It's not a right, it comes about through meeting the standards of the program. You don't pay it in personally, like Social Security (except for a tiny bit in Pennsylvania!) and as I said, most people with less than 3 employees don't pay it in for them. Unemployment Insurance Information For Employers- Iowa Workforce Development

 

[TinkerBelleLuvr]

SUTA and FUTA

State Unemployment Tax & Federal Unemployment Taxes are being paid by the employer per her post.

Unemployment looks at your earning for the quarters, not individual employers.

 

[bugsmom18]

Update!

I found my previous post so the background would already be listed. The time has now come. One agent is retiring on Jan 31, 2011. So my hours will be cut to 16 hours with the other agent only.

1) Will I be eligible for partial unemployment since the agent retired?

2) Will I be able to resign the 2nd agent because I can't afford that cut in pay/hours and be eligible for full unemployment benefits?

3) There has been talk between the two agents that the 2nd agent wants to hire a full-time person at a much cheaper rate since she knows I had planned to resign my job in 2012 when I'm done with college. (I've been here for 13 years.) If she hires someone now, the soon-to-be-retired agent is going to take over paying me for 32 hours a week and the 2nd agent won't pay me at all. Will that make me eligible for full unemployment benefits once agent #1 retires? (I may possibly be a full-time employee of agent #1 for 1-2 months.)

I attend school 3/4 time in the evenings and have been preparing for the inevitable career change due to these agents retiring. I don't know when the 2nd agent plans to retire though....

Thank you for any insight. I do plan to contact the Iowa Workforce Development office to set up an appointment but I'm curious right now! LOL

 

[pattytx]

Again, you've been reporting wages on the IA state UI return for both agents/companies, yes?

Then ALL reportable wages are taken into considerations when calculating unemployment benefits.

You may be eligible for partial benefits due to the reduced hours.