Freelancing offers many perks, including the ability to develop multiple income streams. However, even the most successful freelancers can find themselves without work, especially during an economic downturn. If you find yourself in this situation, you may be wondering if you can collect unemployment benefits.
Unemployment Benefits for Freelancers
Since employers contribute to the unemployment fund, their employees are eligible for government benefits if they qualify after losing their jobs. If you work as a freelancer, it’s likely that you did not contribute to the unemployment fund in your state.
When is a Person Considered an Employee?
If you are hired as an independent contractor, the law may still classify you as an employee, making you potentially eligible for unemployment benefits, depending on the law in your state. For example, in New York, even if an employer hires you as an independent contractor, the law may consider you an employee. This means you may qualify for unemployment insurance benefits.
How to Check Your Eligibility
Eligibility varies by state, so check with your state’s unemployment office to know who qualifies for unemployment compensation and how to apply. When you become unemployed, it’s a good idea to check your eligibility for benefits right away. It may take time to start receiving benefits if you qualify, so you should submit your application as soon as possible.
Disaster Unemployment Assistance
If you are unemployed because of a major disaster, you may be eligible for Disaster Unemployment Assistance (DUA). The federally funded DUA program is designed to provide assistance to workers who become unemployed as a result of a major disaster declared by the president and who are not eligible for other unemployment benefits.
Freelance Assistance Program
The Freelance Assistance Program is a federally approved program that provides unemployment benefits to displaced or unemployed workers in certain states when they start a business.
When You Are Already Collecting Unemployment
If you are collecting unemployment based on a job you had, freelancing can affect the benefits you receive. For example, in New York, you need to report income when you work as a freelancer, or do “gigs” for another company, or start a business, or become a freelancer while collecting unemployment benefits. If you are doing other work, you may be disqualified from receiving unemployment benefits or receive partial unemployment benefits for the week you worked.
Frequently Asked Questions (FAQs)
What disqualifies you from receiving unemployment? In most states, you are disqualified from receiving unemployment benefits if you were dismissed for cause. You may also not qualify if you haven’t worked long enough or earned enough money to meet the requirements. For example, some states may require you to have worked at least in two quarters during the calendar year and exceed a wage threshold.
How long do you need to work to get unemployment? Most states have requirements for working to qualify for unemployment benefits. For example, in New York, you must have worked in two quarters during the calendar year to be eligible. Note that you can work for more than one employer during that time, as long as they are covered by the state’s unemployment insurance program.
Thank you for your feedback! Let us know why! Another
Sources:
- U.S. Department of Labor. “State Unemployment Insurance Benefits.”
- New York State Department of Labor. “UI and Independent Contractors Frequently Asked Questions.”
- IRS. “Independent Contractor (Self-Employed) or Employee?”
- U.S.
Department of Labor. “Disaster Unemployment Assistance.” - U.S. Department of Labor. “Self-Employment Assistance.”
- New York State Department of Labor. “Before You Apply for Unemployment: Frequently Asked Questions.”
Source: https://www.thebalancemoney.com/can-i-collect-unemployment-if-i-m-self-employed-2064148
“`
Leave a Reply