Does Companies Know You Filed for Unemployment
The benefits of cocky-employment are numerous. You lot maintain a large degree of independence in when, where and how you work. You take ample flexibility in whom yous work with and in pursuing your own vision of success. You may not fifty-fifty take to commute.
But aslope all of the perks of working for yourself is — or traditionally has been — a consequential downside: Cocky-employed people, independent contractors, freelancers and gig workers have never had the protection of unemployment insurance benefits when they lose work or income. Until, that is, the United States government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Human activity in March 2020.
Under the CARES Act, states were given the choice of providing unemployment benefits to cocky-employed people, including independent contractors, freelancers and gig workers, whose employment was impacted by the COVID-xix pandemic — and this conclusion shifted financial situations in some key ways. If yous work for yourself, it'south vital to larn about unemployment insurance for self-employed people in the United States, forth with what the recent policy changes could mean for yous.
Unemployment programs in the United States ofttimes refer to people who are self-employed, freelancers or gig workers as "independent contractors." Merely what is an independent contractor?
An contained contractor provides goods or services to someone else, but without doing so under the management of an employer. Different employees, who work for some other person's business, independent contractors have their ain "business" and provide services to their own clients. The human relationship between an independent contractor and the client to whom the contractor is providing goods or services is not an employment relationship; information technology'due south an independent contractor human relationship.
There are countless types of jobs that fall into this category; freelance writers, commitment drivers, rideshare drivers (in many cases) and landscapers are all potential examples. Just, generally, anyone who'due south working for themselves and doesn't have an employer dictating their work and how it'll be done can be classified as an independent contractor.
The lines between employment relationships and independent contractor relationships can certainly blur, however. They're different in some states and depend on whether you're dealing with taxation, labor or benefits issues. But, ultimately, independent contractors — whether you phone call them cocky-employed people, freelancers, gig workers or contractors — are eligible for self-employed unemployment insurance under the CARES Act.
How Can Independent Contractors Qualify for Unemployment Insurance Benefits?
Commonly, independent contractors weren't eligible to receive unemployment benefits because those benefits were designed for employees of businesses. That's because their employers pay taxes into the state and federal unemployment programs that provide these benefits — independent contractors don't fund these systems. Nonetheless, the CARES Act — an economic stimulus bill that was designed to provide relief to people impacted financially by the COVID-xix pandemic — significantly expanded eligibility criteria to include contained contractors. The U.South. Department of Labor notes that independent contractors may now be eligible for unemployment insurance benefits:
- If they're unemployed, partially unemployed, or unable or unavailable to work considering of the COVID-19 pandemic
- If they don't authorize for normal unemployment benefits (you can't go both regular and self-employed unemployment insurance benefits)
- If they're dealing with sure health or economical consequences from the pandemic
- If they live in sure areas, as dissimilar states handle the CARES Deed's provisions differently
What could you be entitled to? Hither more details from the Department of Labor: "The PUA [Pandemic Unemployment Assistance] program provides up to 39 weeks of benefits, which are bachelor retroactively starting with weeks of unemployment outset on or after Jan 27, 2020, and catastrophe on or earlier December 31, 2020. The amount of benefits paid out volition vary by land and are calculated based on the weekly benefit amounts (WBA) provided under a country's unemployment insurance laws. Nether the CARES Act, the WBA may be supplemented past the additional unemployment help provided under the Human activity."
This data refers to a December 31, 2020, cutoff. Many provisions of the CARES legislation were continued beyond Dec 31, 2020, simply with changes and new language that described them.
To learn how to apply for unemployment benefits in your state and become information most exactly which benefits you may be entitled to, visit the CareerOneStop website, which is sponsored by the Department of Labor. Be certain to look upwardly specific information that matches your location and circumstances. The filing procedure can be complex and detailed, so it'south of import to follow each footstep precisely.
What Y'all'll Need to File for Unemployment Benefits
As mentioned, some states require unlike specific pieces of information, but there are some basics that you'll need to go the procedure started just about everywhere:
- Your proper name, phone number and full mailing address
- Your driver'southward license number or country identification number
- Your Social Security number or Alien Registration number
- Proof of income, including documents like 1099 tax forms, Westward-ii tax forms, pay stubs, income tax returns, depository financial institution statements or record books
- Your bank account number and routing number if you lot alive in a state where unemployment insurance benefits are paid past direct deposit
Every bit a full general rule, you should file a claim for unemployment benefits in the state where you lot worked. If y'all're in an unusual situation in which yous worked in a state other than where you live or if you worked in several different states, contact the state unemployment insurance part where you currently alive to decide the state where yous should file your merits.
Are There Other Pandemic-Related Benefits Available for Cocky-Employed People?
Hither's the short answer: Yes. A medium-sized answer follows, simply the longest and fullest answer with all the details and information you demand is ane yous should examine with help from the labor department in the state where you alive. Whether or not you're eligible for any of these benefits will depend on your personal circumstances and your power to provide the data necessary to substantiate your claim.
The Paycheck Protection Program (PPP)
You may exist a self-employed person who doesn't work for anyone else, but you may too be an employer of other people. Independent contractors who employ other people may be entitled to participate in the PPP, a program of the United States Small Business organization Administration designed to encourage people to proceed their workers employed during the pandemic.
The Self-Employment Assist Plan (SEAP)
The Department of Labor'southward Employment & Preparation Assistants has developed SEAP, a program intended to help employees who have lost their jobs to create their own jobs past starting businesses. If you were an employee but have been or are trying to develop your own business concern (meaning you'll somewhen be cocky-employed, a freelancer or an independent contractor), yous may be eligible for a self-employment assistance allowance instead of regular unemployment insurance benefits. In that location's an important thing to keep in mind, though: SEAP is a voluntary programme that states can participate in, only not all states do. To find out whether your land offers SEAP, visit CareerOneStop's Unemployment Benefits Finder.
In many ways, the COVID-nineteen pandemic has introduced unprecedented stresses into the U.S. economy and the personal financial circumstances of millions of residents, including people who are cocky-employed. In response to those challenges, governments have introduced unprecedented forms of support, even for independent contractors. Attempt not to assume anything nigh your entitlements, but exercise look at the specifics of your land and needs carefully.
Source: https://www.askmoney.com/insurance/unemployment-insurance-self-employed-workers?utm_content=params%3Ao%3D1465803%26ad%3DdirN%26qo%3DserpIndex
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