Hi I have been thinking to join a prop firm for many years, currently I got laid off and I think it is the best time to venture into the new path while I have the monthly income of Unemployment Insurance Benefits which can keep me afloat. If I accept any "offer" from a prop firm as a prop trader, is this going to be a real "JOB" that will cost me to lose the Unemployment Insurance Benefits? You know, as soon as one has a JOB, one is no longer qualified for the Unemployment Insurance Benefits. Any helpful information is appreciated.
You won't receive any income for awhile, so I would consider it as attending "training". You'll still be eligible for benefits until you receive your first check. If your first checks are smaller than unemployment checks, I'd keep your profits in your account until you deplete your benefits. Then you can withdraw them.
You are REQUIRED to report any work related training etc to your state. Obey the laws or be surprised later with fines and penalties..............and ohh yeah, file a false claim and sign that sheet every 2 weeks that you are required to claim you looked for work, ask the gal/guy if they can file criminal charges against you.
prop trading its self employment income. I know in new york you can still be self employed and collect unemployment as long as your self employment income is less than $405 a week. You are still required to report your self employment income. As for the department of labor finding out, I doubt that prop firms report their payroll and quarterlies to the department of labor because everybody working at the prop shop is 1099. So basically I doubt they would ever find out. If they do there is usually a minimum amount before the state can press criminal charges. Its usually 3k. Otherwise they file a notice of overpayment. Hope this helps.