Do You Make a New Account When You File for Unemployment Again
The benefits of cocky-employment are numerous. You maintain a big degree of independence in when, where and how yous piece of work. Y'all take ample flexibility in whom y'all work with and in pursuing your own vision of success. You may non even have to commute.
But alongside all of the perks of working for yourself is — or traditionally has been — a consequential downside: Self-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 Us government passed the Coronavirus Assistance, Relief, and Economic Security (CARES) Act in March 2020.
Under the CARES Act, states were given the option of providing unemployment benefits to self-employed people, including independent contractors, freelancers and gig workers, whose employment was impacted by the COVID-19 pandemic — and this determination shifted financial situations in some central ways. If you work for yourself, it's vital to learn about unemployment insurance for self-employed people in the United States, forth with what the recent policy changes could mean for you.
What Are Independent Contractors?
Unemployment programs in the U.s.a. often refer to people who are self-employed, freelancers or gig workers equally "independent contractors." But what is an independent contractor?
An contained contractor provides goods or services to someone else, merely without doing so under the direction of an employer. Unlike employees, who work for another person's business, independent contractors accept their own "concern" and provide services to their own clients. The human relationship between an contained contractor and the client to whom the contractor is providing goods or services is not an employment human relationship; information technology'due south an independent contractor relationship.
At that place are countless types of jobs that fall into this category; freelance writers, delivery drivers, rideshare drivers (in many cases) and landscapers are all potential examples. Only, mostly, anyone who's working for themselves and doesn't have an employer dictating their work and how it'll exist washed tin can be classified as an contained contractor.
The lines between employment relationships and contained contractor relationships can certainly blur, nonetheless. They're unlike in some states and depend on whether you lot're dealing with tax, labor or benefits issues. But, ultimately, contained contractors — whether yous call them self-employed people, freelancers, gig workers or contractors — are eligible for self-employed unemployment insurance under the CARES Human activity.
How Can Independent Contractors Qualify for Unemployment Insurance Benefits?
Ordinarily, 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 — contained contractors don't fund these systems. Still, the CARES Act — an economic stimulus bill that was designed to provide relief to people impacted financially by the COVID-19 pandemic — significantly expanded eligibility criteria to include independent contractors. The U.S. Department of Labor notes that independent contractors may at present exist 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 qualify for normal unemployment benefits (you can't become both regular and self-employed unemployment insurance benefits)
- If they're dealing with certain health or economic consequences from the pandemic
- If they live in sure areas, equally different states handle the CARES Deed'due south provisions differently
What could you lot be entitled to? Here more details from the Section of Labor: "The PUA [Pandemic Unemployment Assistance] program provides upward to 39 weeks of benefits, which are bachelor retroactively starting with weeks of unemployment start on or after January 27, 2020, and ending on or before December 31, 2020. The amount of benefits paid out volition vary by state and are calculated based on the weekly benefit amounts (WBA) provided under a state'due south unemployment insurance laws. Under the CARES Deed, the WBA may exist supplemented by the boosted unemployment help provided nether the Human action."
This information refers to a December 31, 2020, cutoff. Many provisions of the CARES legislation were continued beyond December 31, 2020, but with changes and new language that described them.
To learn how to utilize for unemployment benefits in your state and become information virtually exactly which benefits yous may be entitled to, visit the CareerOneStop website, which is sponsored by the Department of Labor. Be sure to look up specific information that matches your location and circumstances. The filing procedure can be complex and detailed, so information technology'southward important to follow each pace precisely.
What Yous'll Need to File for Unemployment Benefits
As mentioned, some states crave different specific pieces of information, but there are some basics that you'll need to get the procedure started simply about everywhere:
- Your name, phone number and full mailing address
- Your driver's license number or state identification number
- Your Social Security number or Conflicting Registration number
- Proof of income, including documents like 1099 tax forms, W-2 tax forms, pay stubs, income tax returns, banking concern statements or record books
- Your banking concern account number and routing number if you live in a state where unemployment insurance benefits are paid by direct eolith
As a full general dominion, yous should file a claim for unemployment benefits in the state where you worked. If yous're in an unusual situation in which you worked in a land other than where yous live or if you worked in several dissimilar states, contact the country unemployment insurance office where you currently live to decide the state where you should file your claim.
Are There Other Pandemic-Related Benefits Available for Self-Employed People?
Hither's the brusk respond: Yep. A medium-sized reply follows, merely the longest and fullest answer with all the details and information y'all demand is one you should examine with help from the labor section in the country where you live. Whether or not yous're eligible for any of these benefits volition depend on your personal circumstances and your ability to provide the information necessary to substantiate your claim.
The Paycheck Protection Programme (PPP)
You may be a self-employed person who doesn't work for anyone else, simply yous may also be an employer of other people. Independent contractors who employ other people may be entitled to participate in the PPP, a program of the The states Small Business Administration designed to encourage people to continue their workers employed during the pandemic.
The Self-Employment Aid Program (SEAP)
The Department of Labor's Employment & Training Administration has developed SEAP, a programme intended to help employees who have lost their jobs to create their own jobs by starting businesses. If y'all were an employee but have been or are trying to develop your own concern (meaning you'll eventually be self-employed, a freelancer or an contained contractor), you may be eligible for a self-employment assist allowance instead of regular unemployment insurance benefits. There's an of import thing to keep in heed, though: SEAP is a voluntary program that states can participate in, but not all states do. To find out whether your state offers SEAP, visit CareerOneStop's Unemployment Benefits Finder.
In many ways, the COVID-xix pandemic has introduced unprecedented stresses into the U.S. economy and the personal financial circumstances of millions of residents, including people who are self-employed. In response to those challenges, governments have introduced unprecedented forms of support, even for contained contractors. Attempt non to assume anything about your entitlements, but do look at the specifics of your country 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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