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Self-Employed Worker Can Apply for Unemployment Compensation
The CARES Act signed into law by President Trump on March 27, 2020, gives states the option of extending unemployment compensation to independent contractors and other workers who are ordinarily ineligible for unemployment benefits.
Federal Relief Packages for Self-Employed
With freelancers, independent contractors and gig workers among the millions of Americans losing their jobs as the coronavirus chokes the economy, new and expanded benefits are offering them a way to cope.
Here are two important parts of the relief packages that may apply for martial arts school owners.
1. Paid Sick Leave
If you've been forced to close, you may be able to for sick leave in the form of a tax credit that can reduce your tax burden or as a refund.
2. Unemployment Insurance
The federal response to the pandemic includes an expansion of unemployment benefits to self-employed people who typically are not eligible.
There is an additional pot of money to draw from for these workers, through the so-called pandemic unemployment assistance program, which will be administered through the states.
It covers a loss of income for a variety of coronavirus-related reasons, from having to care for a child whose school has been closed to a workplace that has had to shut down.
Self-employed workers should apply for benefits through the unemployment program in the state where they worked.
All workers receiving unemployment benefits — including the self-employed — are also eligible for the extra $600 weekly payment being offered by the federal government through the end of July.
NOTE: If you teach paid seminars you may be classified as a gig worker, which is now eligible for unemployment.