Ask Terry Questions self employed person; sub chapter S

self employed person; sub chapter S

By Terry Savage on September 22, 2020 | Wild Card

Hi Terry, Can self employed people who are (because of COVID) chronically underemployed collect unemployment? My husband is a contractor who has taken only two small paychecks since March. He has had a handful of small jobs but what the company has taken in only pays for our liability insurance and other overheads. Keeping the lights on, so to speak. Is he eligible for unemployment? He pays in to unemployment (through his deductions on his paycheck) and he has never collected any unemployment in 40 years of business. We’re confused. Thank you.

Terry Says

Yes, he is definitely eligible. Go to your state unemployment website. He has to apply for “traditional” unemployment (retroactive to his loss of income) and then be TURNED DOWN, before he can apply for the PUA unemployment — which is the program for self-employed individuals who have no work, or substantially less income.

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