Self-employed Texans can now apply for unemployment benefits
The CARES Act gave self-employed workers the ability to qualify for disaster unemployment benefits, also called Pandemic Unemployment Assistance (PUA). Self-employed workers who meet minimum qualifications could receive a base weekly benefit amount of $207, plus the additional $600 Federal Pandemic Unemployment Compensation (FPUC) payment per week. If you are a self-employed worker whose work hours have been negatively impacted by COVID-19, it is well worth your time to explore these benefits as potential financial relief. Let’s look at what is needed to qualify and how to apply for Pandemic Unemployment Assistance.
How to qualify for Pandemic Unemployment Assistance
You likely qualify for PUA if you are self-employed, a contract worker, or previously worked in a position that did not report wages and you are experiencing reduced hours are a result of COVID-19. In some cases, workers who are experiencing reduced hours but still have a steady income from a separate full-time job may not qualify. PUA is meant for struggling workers who are truly unemployed.
What you will need to apply for Pandemic Unemployment Assistance
Unless your net profit for 2019 exceeded $20,800, you will not need to submit supplementary documents with your unemployment application. That amount marks the lowest threshold for qualifying for more than the base benefit amount of $207 per week. If your net profit was $20,800 or more and you would like that factored into calculating your weekly benefits, you can submit your 2019 IRS 1040 Schedule C, F or SE by using the TWC’s online UI Submission Upload portal. Supplementary documents may also be mailed or faxed.
Applying for Pandemic Unemployment Assistance
Get started by creating an account with the Texas Workforce Commission. Once logged on, follow the prompts to begin your application for unemployment benefits. When asked for the reason for their job separation, select “reduced hours,” then select “COVID-19” under the disaster impact section. You will need to answer just a few more questions to complete your claim. Important: After filing you will receive a message saying you have been denied regular unemployment benefits. Do not be alarmed, as you will then be automatically enrolled in PUA.
If you have continued trouble with receiving benefits, or you are still not sure if you qualify, you should contact the Texas Workforce Commission or an experienced employment law attorney.