A long, long, time ago in a galaxy far, far away, small business in America was the backbone of our civilization. Not so much today. According to the United States census bureau, there are approximately 307 million Americans. With an unemployment rate hovering around 10%, this puts about 30 million people out of work. Small business enterprise makes up the bulk of all American economy. Many small business owners provide services to major corporations as 1099 workers or corp to corp workers.

Spinks Small business tips for economic survival
As workers and small businesses head to the unemployment lines to find help after ending a project, many are dismayed and find out that they are rejected from pursuing and receiving unemployment benefits. Why? States paying unemployment insurance benefits are being weighed down and are spending billions in payouts. If they can stop you from receiving benefits they will. Here’s how they do it from a small business perspective.
Years ago, your small business was banging. It was doing great. You provided services corp to corp to major United States corporations and charged them $100 per hour. Banks loved you. People loved you. Life was good. You serviced a niche and you could get financing on everything. Not anymore. Corporations are getting over on you by setting you up as a corp to corp employee. In this way, the temp agency that they go through does not have to pay you a dime in insurance benefits and the most important thing is that they don’t have to pay you unemployment benefits when the contract ends.
Let me say it again. If you provide services as a contractor to a major corporation, the new American hustle is to set you up as a corp to corp contractor. When you head into the unemployment office wanting to claim benefits, you are denied because you were not a W2 contractor. Also, if you did not work the previous two quarters for that firm, you will be denied as well. So companies are getting over on you by hiring for 4-5 month contracts and then letting you go. It seems great and you are happy as a lark because you got the contract but there’s a hidden death trap in there for you and your personal economy.
You will not get health insurance, you will not be able to claim unemployment insurance, you will not get any income after the project ends and you may just be out of the project for 12 months following that. Do NOT let them hire you corp to corp. You are being tricked as part of an elaborate scheme to not pay you any benefits whatsoever. You will leave the unemployment line looking silly and feeling a true sense of let down. Watch how you work.
Gerard Spinks is the CEO of Spinks Industries, a black enterprise, and web content development and marketing company based in Atlanta, GA.
























