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If you do freelance work, you might have a hard time getting unemployment benefits. The same goes for people who are self-employed. On top of having to save and file your own taxes, being a freelancer is difficult. You have to source your own work and pay for your own insurance. Previously, you weren’t even eligible for unemployment.
Now, during the COVID-19 pandemic, you might find it possible, if difficult, to apply for unemployment. Under the CARES Act, Congress has extended unemployment benefits to people who are self-employed, freelancers and independent contractors. Here’s some finance advice on how you can get that process started.
Under the CARES Act, self-employed people are eligible for unemployment through July. Some states have not yet set up their application process, while others have. Washington, Georgia and Alabama are among the states that have. The process for applying varies by state, which has proven very confusing for many applicants.
The reason for the slowdown on these programs is that states are having to build new infrastructure for sending out the money. Getting more funding to existing unemployment programs is easy, as nothing else needs to be built. However, it’s much more difficult to create new programs from scratch for the money.
The best option for finding out about your unemployment benefits is to visit your state’s unemployment website. Every state has one. You need only put in a search your state, followed by “unemployment.” There, you’ll find all the relevant information on what you need to do to apply for the benefits. However, be aware that many states have not yet released a time table for the program rollout.
Even if you are in a state that has extended unemployment to freelancers, prepare for a complex application. You should already keep detailed records of your income, your employment history and your expenses for your taxes. For instance, invoices and previous tax returns will be important for this process.
Documents are preferred, but unemployment officers understand that life is messy. They will accept good-faith assertions about wages as long as you’ve signed them. Whatever you do, do not lie about how much you make. Doing so could result in serious legal issue for you down the line. Not to mention, it’s not cool to lie, especially when you’re signing up to receive benefits. Be patient, and hang in there.
