Navigating Unemployment Insurance for the Self-Employed

Unemployment benefits are normally not available to self-employed individuals. However, under the Pandemic Unemployment Assistance (PUA) program authorized under the CARES Act, states are allowed to provide PUA to people who are self-employed or who would not otherwise be eligible for regular unemployment benefits. To qualify for the benefits, individuals must be unemployed, partially unemployed or unable or unavailable to work because of certain health or economic consequences of the COVID-19 pandemic.

The PUA program provides up to 39 weeks of benefits, which are available retroactively starting with full workweeks between Jan 27, 2020 and ending Dec.31, 2020. The amount paid out is calculated based on the weekly benefit amount (WBA) provided under a state’s unemployment insurance laws. The WBA may be supplemented by the Federal Pandemic Unemployment Compensation (FPUC) provided under the CARES Act, which is an additional $600 per week through July 31, 2020, regardless of the amount of PUA received.

The difficulty for most self-employed professionals is that the eligibility, amount and duration of PUA and the application process vary state by state. Below is a description of PUA for a sample of states.

California: California is accepting PUA applications online or by phone, mail or fax. Initial PUA payments are $167 per week. This may be increased to a maximum of $450 per week if your earnings were more than $17,368 in 2019. To apply, you need to provide proof of citizenship or employment authorization, employment history from the last 18 months and specific information from your last employer or company. More FAQ are available here.

Texas: Texas is determining PUA benefits through its normal unemployment benefits application process. Weekly benefit amounts in Texas are $69 to $521, calculated by dividing your base period quarter with the highest wages by 25. To apply, you need to provide your last employer’s business name and address, first and last dates you worked for your last employer, number of hours worked and pay rate if you worked this week, information related to your normal wage and, if you aren’t a U.S. citizen or national, your Alien Registration Number. More information is available here, including some helpful infographics.

Florida: Florida is determining PUA benefits through its normal unemployment benefits application process. The maximum weekly benefit amount paid by Florida is $275. To apply, you need to provide your Social Security number, driver’s license or state ID number, your employment for the last 18 months, certain information for each employer during that period and if you are a non-U.S. citizen, your Alien Registration Number or other work authorization form. Additional information is available here.

New York: New York has a single application that, based on eligibility, allows you to apply for normal unemployment benefits or PUA. The weekly benefit rate ranges from $104 to $504. New York provides a description of the benefit rate calculation and a benefit rate calculator. You may apply online if you create or have a NY.gov ID account and a corresponding PIN. To apply, you will need to provide the following information to receive the initial payment: Social Security number, driver’s license or Motor Vehicle ID number (if you have either one), mailing address, phone number, Alien Registration number (if you are not a U.S. citizen and have a card), names and addresses of all your employers for the last 18 months (including those in other states) and Employer Registration Number or Federal Employer Identification Number (FEIN) of your most recent employer (FEIN is on your W-2 forms). More FAQ are available here.

Illinois: As of April 28, 2020, Illinois hasn’t started accepting PUA applications.

New Jersey: New Jersey is accepting PUA applications online. The range of PUA benefits is $231 to $713 per week, determined by calculating 60% of your average weekly salary using prior tax returns. New Jersey has published step-by-step instructions, as well as PUA FAQ.

Massachusetts: Massachusetts allows you to apply for PUA online. The maximum weekly benefit rate in Massachusetts is $823. To apply, you will need to provide your Social Security Number, U. S. Citizenship and Immigration Services number (if you are not a U.S. citizen), residential address, mailing address, telephone number, email address, birth date, earning records for 2019 and information for your dependent children. FAQ are available here.

Pennsylvania: Pennsylvanians can file their initial application for PUA online. PUA payments range from $195 to $572. To apply, you will need to provide documentation showing that you were self-employed, your previous income and that COVID-19 is the reason you’re unable to work. Examples of specific types of acceptable documentation are listed, as well as more FAQ.

Colorado: PUA claims can be filed online. The minimum weekly benefit amount is $223 with a maximum up to $618. To apply, you will need your 1040 tax forms for the 2018 or 2019 tax year, whichever you filed most recently. Additional FAQ are available.

Virginia: PUA applications can be filed online. Unemployment weekly benefit amounts in Virginia are at least $60 and at most $378.
If your state is not listed above, you can find the applicable information for your state through this unemployment benefits finder sponsored by the Department of Labor or on the Labor Department website.