- From the housewife selling Avon to the handy-man advertising home repairs, self-employed people have stepped outside the traditional employment path. Freelance writers and many contract positions are also self-employed.
- The IRS considers the receipt of a 1099 to indicate self-employment. These individuals have to file as a business on tax returns and pay their own taxes instead of traditional wage withholding.
- The self-employed are not eligible to receive unemployment insurance. This is because unemployment taxes are paid by the employer, and "based on the existence of an employer-employee relationship," as Freelancer's Union explains.
- Other than not paying benefits in, the law also reasons that the self-employed have control over their own work and income. Thus, fairly or not, as the Freelancer's Union explains, unemployment law states that unemployment and profit is voluntary or optional for the self-employed, unlike an employee, who is limited by the employer.
- A few exceptions exist; some self-employed create corporations that qualify the individual for UI. Also, Disaster Unemployment Assistance is available for self-employed individuals in a disaster area for at least 26 weeks.
- For more information on your eligibility and rights, see your state unemployment office or a licensed professional.
previous post