Asking for information on your unemployment benefits can often be difficult. Why? Because there is always the nagging worry that your questions could be used against you, you may embarrass yourself, or give the impression you are trying to screw with the system. In most cases these worries are unfounded and South Carolina DEW workers are happy to answer your questions. However, there are some questions which are just difficult or even embarrassing to ask, which is why we have put together a series of articles dealing with these tough queries. This week’s question is:

Can I work while I receive my unemployment benefits?

Interestingly, many unemployed workers think they know the answer to this question and feel they have to sneak around and hide, when in actual fact they are entitled to work (up to a certain degree) when receiving unemployment benefits.

Let’s explain. The purpose of unemployment benefits is to provide a temporary source of income while you are trying to find a new job. The Department of Employment and Workforce actually encourages beneficiaries to find part time work to complement their income. The DEW even encourages working as a volunteer if you can’t find paid employment because keeping your contacts to the workforce (using whatever method available) is often the most effective way of finding paid employment.

The only catch is that you must declare any income you receive from your side job. The DEW allows you to earn up to 25 percent of your unemployment benefits without any penalty. However, anything you earn over and above 25 percent of your weekly benefit amount will be deducted from your benefits dollar for dollar. Let’s illustrate this.

Imagine you receive $200 in benefits every week. If you find a part-time job that gives you $50 a week, you will receive no penalty and can claim your full weekly benefit amount. However, if you earn $100 a week, you will have to deduct $50 (the balance from deducting $50, 25 percent of your weekly benefit amount) from your benefits. In other words, the maximum you are entitled to receive while you’re claiming benefits is 125 percent of your weekly benefit. Once your part-time job provides an income higher than your weekly benefit amount you are no longer entitled to claim for benefits.

However, there is a caveat to this answer. You cannot claim for unemployment benefits while you are starting your own business or working as a self employed worker, unless you are part of an official self-employment program. The DEW has programs designed t help unemployed workers start their own business by using their UC benefits as start-up capital. Nevertheless, if you are caught working as a self-employed worker while receiving benefits without being in an official program, you could be accused of fraud. 

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