Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since January 1, 2020, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R994. Workforce Services, Unemployment Insurance.
Rule R994-207. Unemployment.
As in effect on January 1, 2020
Table of Contents
- R994-207-101. General Definition.
- R994-207-102. General Requirements for Eligibility.
- R994-207-103. Corporate Officer.
- R994-207-104. Self-Employment.
- R994-207-105. Bartered or Exchanged Goods and Services.
- R994-207-106. Commission Selling.
- R994-207-107. Volunteer Work.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
(1) The objective of Sections 35A-4-401 and 35A-4-207 of the Utah Employment Security Act is to provide the means by which it may be determined when or if a claimant, who is not totally unemployed, may be allowed unemployment insurance benefits. It is not the intent of the fund to subsidize a claimant who is devoting substantially all his time and efforts to starting up a new business or expanding an existing business even though he receives no income. This is also true for a claimant who is working as a commission salesperson or licensed mortgage broker/loan officer, real estate, or securities salespersons, who may not have received commissions in excess of his or her weekly benefit amount but who has devoted substantially all of his or her efforts to the endeavor.
(2) There are generally four types of potentially employed claimants who need to have their claims examined under Section 35A-4-207. They are:
(a) corporate officers,
(b) self-employed individuals,
(c) commission salesmen, and
(d) volunteer workers.
(1) A claimant is unemployed and eligible for benefits if all of the following conditions are shown to exist:
(a) Less Than Full-Time Work.
The claimant worked all the hours that were reasonable for him to work and the total number of hours was less than full-time. He must not regulate the type or amount of duties or number of hours spent in a remunerative enterprise for the purpose of qualifying for benefits. Full-time work will generally be considered to be 40 hours a week, but may be the number of hours established by schedule, custom, or otherwise as constituting a week of full-time work for the kind of service the claimant performs.
(b) Income Less Than WBA.
The claimant earned less than the weekly benefit amount (WBA) established for his claim.
(c) Available for and Seeking Other Full-time Work.
The claimant in addition to the subject work, must be available for and actively seeking full-time suitable work for another employer as defined by the suitable work test, Subsection 35A-4-405(3) and Section R994-405-306. A failure to make an active search for work will evidence a contentment with his current status and a conclusion that he is "not unemployed" shall be made. The efforts of a claimant to seek work should be distinguished from those directed towards obtaining work for himself as an individual and those directed toward obtaining work or customers for his corporation or business. Efforts to obtain work for the business or corporation are evidence of continuing responsibilities but are not evidence of an individual's active search for other employment as required for eligibility. A claimant who has marketable skills including: bricklaying, plumbing, and office manager, must be willing to seek and accept such work. He may not restrict himself to availability for the type of work he is currently performing on a less than full-time basis. The claimant's past work history is evidence of the effect of such employment on his attachment to the labor force. If he is unable or unwilling to accept any, but short term or casual labor because of continuing or pending responsibilities, he is "not unemployed".
The performance of some service is presumed where the corporate officer is receiving wages or other compensation including a car, house or other benefits of a determinable value. However, the payment of dividends, bonuses, and stock payments based on the percent of ownership of the claimant are not compensation for service and therefore are not considered wages.
(1) Self-employment includes services which are performed for the direct or indirect purpose of obtaining a livelihood or a part of such livelihood. Self-employment is generally established as a sole proprietorship or partnership. An individual is not self-employed when a farm is operated only to supplement the family food supply or as a place on which to raise the family, but is not operated for the purpose of selling produce. Individuals in self-employment must report time spent engaged in self-employment activities such as time spent about the place of business either working or awaiting calls for goods or services and time spent seeking customers or business for the self-employment venture.
(a) Income from Self-Employment.
Some claimants are engaged in part-time, self-employment which produces an immediate, readily determined weekly income. Claimants must report the amounts received for goods bought, supplies purchased, services, rent, etc. These are reasonable business expenses which can be deducted from gross income for goods and services. Payment of loans for buildings or equipment used in the business are not a deductible expense. Claimants engaged in this type of self-employment must maintain detailed records describing each item of income and expense. The Department may audit those records without prior notice.
(b) Income Not Readily Determinable.
(i) When an individual is engaged in an enterprise that on a year-round basis is less than full-time and the income cannot be clearly determined for each week, the weekly earnings will be determined on the basis of all available information concerning past income and expenses of the enterprise, from which a weekly amount will be computed to represent the potential net income. The amount determined must be reported on the weekly claim. Evidence of changes in the enterprise that would affect the potential income for the present must be reported to the Department and the reportable income will be re-evaluated. Furnishing evidence of past income and expenses is the claimant's responsibility and may be obtained from personal or business records, income tax returns, etc. for the past three years. It will then be averaged to determine a potential weekly amount to be reported each week by the claimant. A claimant may earn up to 30% of his weekly benefit amount in total self-employment plus work for wages before a reduction is made in the unemployment insurance payment for that week. When the estimated income amount equals or exceeds the weekly benefit amount, the claimant is "not unemployed" and benefits will not be allowed.
(ii) When a claimant has just entered into a new business or is expanding and has no actual income experience which may be used as evidence of potential income for the current period, he must make a reasonable estimate. This may be based on any available evidence such as a general knowledge of current prices of products bought and marketed, estimated yields, estimated expense, etc. Any estimated amounts should be so identified.
(c) Over Estimates of Income.
If the Department or claimant has over estimated the amount reportable in self-employment, the claimant may make a claim for the amount owed. The claim must be made within 30 days of when the correct earnings were determinable.
(1) A claimant must report when he has entered into an agreement to barter or exchange goods or services. The amount of time working to pay for the goods is reportable. In determining the value derived from bartering or exchanging goods or services, the claimant will consider only the portion of the goods or services that he provides. The payment for these goods or services that is received in kind must be valued at current market values.
If the time spent on commission selling is part-time because of limits imposed by the limited geographical area, limited clientele, or limited products, the claimant could, upon meeting all other provisions of the Act, be allowed benefits.
It is necessary to distribute the income from commission sales over the period of time it took to earn the commission. The income should be reported during the week in which the sale is made and not when the payment is received. If it is not possible to determine the exact amount of the commission, an estimate should be made and if the estimate is later determined to be wrong, the claimant should immediately report to the Department to receive assistance in making adjustments. Failure to report under estimates may result in claimant fault overpayments and a disqualification under the fraud provisions of the Act.
Donated work does not render a claimant ineligible for benefits, even though the number of hours involved may be full-time. Claimants donating 40 hours or more to churches, charities, civic or other non-profit organizations have serious availability restrictions. The claimant may provide evidence of availability by demonstrating a willingness to seek and accept other permanent, full-time work. A diligent work search during any specific week in question, in addition to a positive mental attitude towards seeking and accepting work would provide adequate proof of attachment to the labor force. A failure to make an active search for work would evidence a contentment with the unpaid status of a volunteer worker, and would require a denial of benefits. To be eligible for benefits at a later date, a substantial change in circumstances should be shown.
If a claimant who receives assistance from a church or civic organization is asked to spend time working for that organization, but the value of the assistance is not determined by the amount of time spent working, the assistance is not reportable income. Normally, money is not involved with donated work. If money is involved, it need not be reported unless it is subject to withholding taxes, which indicates an employer/employee relationship. If the organization provides money for out-of-pocket expenses, such as gas, equipment, clothes, etc., it would not be wages and would not be reportable on the weekly claim.
unemployment compensation, unemployed workers
August 2, 2011
August 13, 2015
35A-1-104(1); 35A-4-502(1)(b); 35A-4-207
For questions regarding the content or application of rules under Title R994, please contact the promulgating agency (Workforce Services, Unemployment Insurance). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.