Many states have started offering unemployment benefits to subcontractors under the CARES Act. It is said to help boost the economic conditions of the different states and uplift the subcontractors working in the construction industry.
However, initially, claiming the unemployment benefit was quite a painful task as websites crashed, offices were full of long queues, and phone lines were consistently busy.
A systematic approach to complete the unemployment benefit procedure for subcontractors has started that is promising to ease their condition. So, if you want to make your application process for this more flexible, here’s what you need to know.
But before you scroll down, do not forget to check out this page https://www.gobridgit.com/subcontractors for more information on contractors.
Who Is Eligible For This Benefit?
You may have received a W-2 form. It means that the employer is paying you a salary so that you can qualify for unemployment insurance. Here’s how you can be eligible under the new program.
:: People who are looking for part-time work can apply for it.
:: People who do not have a sufficient work history may qualify for the benefit.
:: Anyone self-employed in the construction industry.
:: Present claimants who have backed out of their unemployment benefits.
Even if you are not sure whether you fulfill the qualification criteria, it would be wise to apply for the subcontractor unemployment benefit for safety purposes.
Presently, with the expansion of the federation, anyone who is unemployed or has lost their jobs in the pandemic is gaining all the support they require.
So, if you are self-employed and have been denied the eligibility criteria, it is because the state isn’t ready to accept more applicants as yet. With a little bit of patience, you could go a long way without any compromise.
How Can Self-employers Apply For Unemployment Benefits?
The new Pandemic Unemployment Assistance (PUA) requires you to lose your job in the covid crisis. So, anyone who does not have a job or is ill with covid can be qualified for it.
Also, anyone with a family of sick people during this time can apply for these unemployment benefits. If you are a worker looking to start a new job and if you are someone who has to stay back at home to care for children, then you can qualify for this program.
Although states do not have to ask you about your illness proof, you may have to give them the working proof before submitting your application. Once that is reviewed, you can go ahead with the process without any stops.
Generally, every office has unemployment proof due to your previous work experience records. But since most people lack a W-2 form, you have to submit information in the state offices to help them record your earnings.
If you are looking to take an ideal record, it is best to go for the 2019 tax return. You could also opt for the paystubs of 2019 and 2020. If you cannot find these, it is best to collect the records from various clients of how much they paid you.
In case you have worked with Lyft and Uber, you could ask for documents from them too. They will provide them at the earliest.
The step-by-step process for every state may differ. So, you have to go to the state’s office and seek information regarding the same. If the state confirms that they do not have your work history, you will be classified as ineligible for the unemployment benefits. So, you will be processed for the new PUA Unemployment benefits.
Remember to regularly check with the unemployment agency after you have applied for the benefits. A weekly certification will be needed regarding your unemployment to receive payments timely without any inconvenience.
How Much Does Unemployment Pay?
Now, how much unemployment money you will receive is entirely dependent on what state you have worked in and how much you earned during your previous work experience. So, you have to be specific about those things right from the beginning. If you live in a different state, you need to apply from the state where you worked.
Generally, the unemployment act allows you to receive around 40% to 50% of your previous earnings. The maximum limit may vary from $235 to $835 as per the considerations. With the new PUA, the unemployment amount has been set to half a state’s average payment.
In addition, all workers are to be paid an extra $600 each week from the federal government from March to the end of July. So, in Texas, whichever self-employed individual qualifies will start receiving $807 from now. So, it is good news for them.
Now, the length of the unemployment benefit also largely depends on the state. In some states, people are allowed to receive it for up to 26 weeks. In the remaining, it may be for up to 12 weeks only. The expanded eligibility criteria add 13 weeks to this limit, though.
Now, what happens when there is a backlog in the system? Many states like Texas and California have finally decided to issue back payments to the unemployment date for such cases. This will help the workers from avoiding week-long charges that only enhance their financial crunch altogether.
When you apply for unemployment benefits, make sure to understand your state’s rules and regulations regarding the same. Since every state has a different set of payment and benefit options for this purpose, you may want to understand that to avoid any complications in the long run.
This way, all your worries can take a backseat, and you can have a safe experience dealing with your finances the right way.
So, why keep waiting? Make sure you have all the necessary documents in hand to fulfill the criteria correctly. Also, remember to be honest when they ask you questions. They may have the records to prove your statements.