Did you know that some companies will report your earnings from side gigs to the unemployment department? This can lead to a reduction in your benefits and in some cases, cancellation of your unemployment check.
Luckily, not all gig economy jobs report earnings
Doordash does not report anything to unemployment. And while you might think this is good news – it’s really not. Unemployment benefits are a safety net for when you need them most.
If you’re signed up for unemployment benefits and drive with Doordash on the side, it’s probably a better idea to find something else to do until you exhaust those benefits. Read on to learn more about whether or not Doordash reports to unemployment and what that means for you if you drive with them as a side gig:
Why does Doordash not report to unemployment?
There are a few educated guesses as to why Doordash doesn’t report earnings to your state unemployment agency.
The first reason is that a lot of drivers sign up for unemployment benefits to help them make ends meet while they’re unemployed. If Doordash reported earnings, that would take away benefits from drivers who really need them – not good!
DoorDash is a food delivery app, so in many states, working at a food delivery job disqualifies you from receiving unemployment benefits. This is because the law says you need to be able to work full-time and show that you are actively seeking work.
Driving with Doordash is also seasonal work, so you probably only drive with them during certain times of the year. During those times, you likely make less than the minimum amount to report to unemployment.
What happens if you earn money from side gigs while on unemployment?
This is an excellent question. And one that is worth asking — especially if you have been looking for a gig that won’t report earnings. Unfortunately, working as a gig economy employee on the side while receiving unemployment benefits can get you kicked off the unemployment.
If you are receiving unemployment benefits and work as a gig economy driver, you run the risk of being reported to your state unemployment agency. Reporting earnings will likely result in your unemployment benefits being reduced or cancelled.
Should you drive for Doordash while on unemployment benefits?
Your first priority should be to exhaust your unemployment benefits. This will provide you with a financial safety net for as long as you need it. If you are receiving unemployment benefits, it would be unwise to drive for Doordash as a gig economy employee.
Doordash might report your earnings to your state unemployment agency. This will likely result in your benefits being reduced or cancelled. Not only will this put you in a bad position financially — but it will also put you at risk of having your benefits terminated.
Driving with Doordash is not worth it if it will cause you to lose your unemployment benefits. If you are receiving unemployment benefits, it’s best to find a gig economy job that doesn’t report earnings. If you can find a suitable gig that doesn’t report earnings, this will help to keep your benefits safe.
If you can’t find a gig like this — it might be worth waiting until your benefits are exhausted to start working. Of course, every situation is different — so talk to an expert first to make sure you know what you’re getting into.