Can a Small Business Owner File for Unemployment

Can a Business organisation Owner File for Unemployment?

As a minor business organisation owner, yous may be wondering if you're eligible for unemployment benefits. Skillful news—you are. Read more than about what they are and how to file.

Feb 04, 2021

four min read

Bailey Keppel

February 04, 2021

4 min read

Past the end of 2020, the average number of unemployment filings per week was but over 803,000. Meanwhile, more 97,966 pocket-sized businesses were forced to permanently close their doors from Apr to August alone.

Looking at the latter tally, yous may be wondering if there are whatsoever unemployment benefits for small-scale business owners.

The reply is aye—small business owners can file for unemployment equally long as certain requirements are met. Below, we'll walk you through what those requirements are, how to file, and some additional financial relief options to set up yous up for success in 2021.

Unemployment Expansion Through CARES Human action

The CARES Human activity is a federal program put in place to "provide fast and straight economical assistance for American workers, families, and pocket-size businesses." Their goal is to better the working opportunities in the U.s. during COVID-xix.

Ultimately the CARES Act serves to expand unemployment eligibility. Programs in the act—applicative to small business owners—include the Payroll Protection Program (PPP), Pandemic Unemployment Assistance (PUA), and Economic Injury Disaster Loans.

Permit's take a closer wait at PUA which helps extend unemployment benefits to those who would be otherwise ineligible (prior to COVID), such as small-scale business organization owners, independent contractors, and cocky-employed individuals.

Pandemic Unemployment Assistance

The Pandemic Unemployment Help plan (PUA) is a federal financial assistance program. It is umbrellaed under the CARES Act, providing for small business owners likewise every bit individual contractors and self-employed workers.

This program offers funds to small business organisation owners and self-employed individuals "who are out of business organization or accept significantly reduced their services equally a direct result of the pandemic." The program was officially extended to provide an additional 11 weeks of PUA benefits on Dec 27, 2020. Details on the eligibility qualifications can be found on the EDD website.

The process to apply for the PUA differs by state, and so be certain to review your country'due south unemployment website for specific qualifications, requirements, and application processes. Typically, to file a claim for this program, you lot'll need to report your 1099 or W-2 wages.

Information technology's important to note that this programme is only available to small business owners who don't already authorize for regular unemployment benefits.

Requirements for PUA

The PUA is a bang-up option for pocket-size business owners in demand of financial help. Let's walk through a breakdown of some of the program's specifications.

You are eligible to apply if you are:

• Self-employed.
• Seeking part-fourth dimension employment.
• Currently out of business because of COVID-nineteen.
• Able and available to work.
• An independent contractor.

Meanwhile, yous are ineligible for this unemployment program if:

• Your company airtight for a reason other than COVID-xix.
• Your business concern tin can operate remotely.
• You have some other source of employment or income.

For additional information on specific eligibility requirements for PUA, exist sure to visit the U.S. Department of Labor website.

How to File

To file for unemployment every bit a business possessor, you'll employ online with your state's department of labor. Each role will have you make full out one class as an employee and another as the business owner. This means yous'll need to take the post-obit documents ready for apply:

• Pay stubs from the previous year.
• Both business concern and personal tax returns.
• Your Employee Identification Number (EIDN).
• Your W-two or 1099 form.

Once y'all've filed, you're well on your way to receiving unemployment benefits. Nether normal circumstances, you'll be required to actively seek employment and certify for your benefits bi-weekly.

What are Some Other Financial Relief Options?

Payroll Protection Program

The Payroll Protection Program (PPP) is a CARES Human action sponsored plan established specifically for helping small concern owners foundationally and financially. The program offers business owners budgetary back up to:

• Maintain their payroll.
• Rent new or recently terminated employees.
• Comprehend the price of overhead bills.

This program was started by the Small Business Administration (SBA) and has been wildly successful in supporting 84% of small-scale business employees throughout 2020.

If you believe the PPP is correct for you lot, then visit the U.South. Department of The Treasury website for more information virtually specific requirements and enrollment options.

Economical Injury Disaster Loans

The Economical Injury Disaster Loan (EIDL) plan is another means of economical relief for small business concern owners. The goal of the programme is to support businesses to COVID-specific financial detriment that otherwise wouldn't have occurred.

This loan is low-interest and available for whatever small business owner in the U.S.

We encourage you to read more well-nigh each of these two financial assistance programs in this explanatory commodity to determine if either is right for y'all and your business organization.

For a non-financial pocket-size business support tool, create a free account with GoSite to meet how we can assist boost your concern.

Yous tin also stay upward to date with accurate and upward-to-engagement information through our COVID-nineteen Resource Hub.

Bailey Keppel

galvaningdon.blogspot.com

Source: https://www.gosite.com/blog/can-a-business-owner-file-for-unemployment

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