• Mika Henrickson

Self-Employed and Independent Contractors Now Qualify for Unemployment Benefits

Article Highlights:

  • Unemployment Compensation Expansion

  • Qualifications

  • Limitations

  • Benefits

  • Duration of Benefits

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27th by President Trump, includes an unemployment assistance program for individuals who under normal circumstances would not qualify for unemployment benefits, which traditionally have only applied to employees. Under the CARES Act, unemployment benefits are now available for self-employed individuals, independent contractors and others – even some with limited work history – who are unable to work because of the coronavirus emergency.

Qualifications: To qualify for these expanded unemployment benefits, an individual will have to self-certify that they were available to work but unable to for any of the following reasons:

  • Has been diagnosed with COVID-19 or are experiencing symptoms of COVID-19 and is seeking medical diagnosis;

  • A member of the individual’s household has been diagnosed with COVID-19;

  • The individual is providing care for a family member or member of their household who has been diagnosed with COVID-19;

  • The individual is the primary caregiver for a child or other person in the household who is unable to attend school or another facility as a direct result of COVID-19;

  • The individual is unable to work because of a COVID-19 imposed quarantine.

  • The individual is unable to work as the result of being advised to self-quarantine by a health care provider;

  • The individual was scheduled to start a job, but was unable to do so as a result of the COVID-19 health emergency;

  • The individual has become a major supporter of a household as the result of the death of the head of household who has died as a direct result of COVID-19;

  • The individual quit their job as a direct result of COVID-19; or

  • The individual’s place of employment is closed as a direct result of COVID-19.

Additional eligibility qualifications may be added by the Secretary of Labor.

Individuals who are able to work from home with compensation or are receiving paid sick leave or other paid leave benefits do not qualify.

Benefits paid under this provision will include the amount allowed under state law plus $600 per week for a period of up to four months. The benefit period is extended to 39 weeks (normally 26 weeks in most states). The usual one-week waiting period before receiving benefits is waived. These special benefits only apply beginning on January 27, 2020 and ending on December 31, 2020.

These benefits are paid through state employment departments. To apply, contact the agency in your state. If this office can be of assistance, please call.

11 views0 comments

Recent Posts

See All

Refund Statute Expiring: Don’t Miss Out!

Article Highlights: The refund statute expires on May 17, 2021 for unfiled 2017 returns. Unfiled returns will lose out on refundable credits. Refunds may be offset by unpaid child support, past due st

Owe Taxes and Can’t Pay by the Due Date?

Article Highlights: If you can’t pay Loans Credit card payments IRS Installment agreement Retirement funds The vast majority of Americans get a tax refund from the IRS each spring, but what if you are