Self-Employment Aid: Crucial Information to Understand
With the recent signing of the $900 billion relief bill by President Trump, self-employed workers, independent contractors, and gig workers can now apply for extended unemployment benefits under the CARES Act. Here's what you need to know about the process:
Self-employed workers and gig workers can apply for these benefits by filing claims through their state's unemployment insurance (UI) system. They are eligible for benefits through the Pandemic Unemployment Assistance (PUA) program established by the CARES Act, which specifically expanded benefits to these groups who typically are ineligible for regular UI benefits.
To qualify for the PUA program, individuals must be unemployed, partially unemployed, or unable to work due to COVID-19-related reasons. They must also demonstrate self-employment or contractor status, often by showing tax filings or business records.
While traditional UI claimants must actively search for full-time work, guidance varies for self-employed and gig workers. Some states may waive or adapt work search requirements during public health emergencies.
Most states offer direct deposit or electronic payment cards for benefit disbursement. Claimants must provide documentation of their self-employment or independent contractor status and report income and work status consistent with UI requirements.
The CARES Act initially covered these benefits through specific periods during the pandemic, with subsequent legislation extending some of these programs. The duration and extension of benefits may vary, so it's essential to check your state’s unemployment agency website for current application instructions related to CARES Act benefits and ensure you document your self-employment.
It's important to note that eligibility and guidelines for unemployment benefits vary by state. Under the CARES Act, states provide flexibility if you are unable to seek work because of COVID-19. You may be eligible if you are self-employed and have lost income due to coronavirus measures. You may also qualify if you're unable or unavailable to work for reasons related to COVID-19, such as being quarantined or caring for a sick family member.
To file a claim, you should file a claim with the unemployment insurance program in the state where you worked. Unemployment benefits have traditionally been available only to those who work for an employer and lose a job through no fault of their own. However, the CARES Act has expanded these benefits to include self-employed workers and gig workers.
In some states, there may be delays in processing new unemployment claims due to the surge in applications and the launch of new systems. Filing for unemployment benefits may also be delayed in certain states due to a delay between the vote in Congress and the president's signature. It's recommended to contact your state's unemployment insurance office for information on who can collect benefits, how to file a claim, and if any delays are expected.
In summary, self-employed workers, independent contractors, and gig workers can now apply for extended unemployment benefits under the CARES Act. To qualify, individuals must demonstrate self-employment or contractor status, and they must be unemployed, partially unemployed, or unable to work due to COVID-19-related reasons. Claimants should file a claim with the unemployment insurance program in the state where they worked and provide documentation of their self-employment or independent contractor status. Check your state’s unemployment agency website for current application instructions related to CARES Act benefits and ensure you document your self-employment.
- To ensure you don't miss out on these benefits, it's essential to document your self-employment status for your unemployment application.
- If you're self-employed and have experienced a loss of income due to COVID-19 measures, you may be eligible for extended unemployment benefits under the CARES Act.
- In addition to filing a claim with your state's unemployment insurance program, you should also be prepared to show tax filings or business records as evidence of your self-employment status.
- Under the CARES Act, self-employed individuals and gig workers can now access personal-finance apps that offer tax and insurance planning features, which can be helpful in managing their finances during these uncertain times.
