Babysitting

• Informal employment like babysitting or mowing lawns does not seem like it would affect the amount of your unemployment. However, the amount of money you earn can decrease the amount of your weekly unemployment benefits if you report it. It is illegal not to report the amount of money you earn from small jobs like these, no matter how inconsequential you believe they are. You must report any type of income you receive for your services to your unemployment office. Whether you do some freelance consulting, or get a 10-hour-per-week job at a fast food restaurant, the income you earn is reportable.
  
  

Types of Income

• Even if you don’t get paid with money for the work that you do, you must still report the income to your state’s unemployment office each week. For example, in Wisconsin, you must report money earned in the week you earned it, not the week in which you are paid, for activities such as working off a bill. If you are living with someone, and he is paying your room and board, you must report that as income. Commissions, tips and other similar wages must also be reported.
  
  

Other Types of Fraud

• You are also committing fraud if you do not look for work, say you’ve looked for work when you haven’t, or lie about not being able to work. If you’re on a temporary lay-off, remain job-attached, have a scheduled date of hire or rehire for more than 30-hours per week, or are a union employee, you must actively look for work according to your state’s regulations.
  
  

Fraud Penalties

• States take unemployment fraud seriously and do prosecute those suspected of fraud. For example in Texas, some unemployment fraud penalties include deferred adjudication, restitution, fines, payment of court costs and community service.