Is unemployment for a Sole Proprietor who is paid irregularly possible?
April 27, 2020 2:01 PM Subscribe
I am a Sole Proprietor LLC, and my am earning less because of the lockdown in NJ. Is it possible for me to get unemployment as a self employed person?
I live in NJ, and my multiple clients are in NYC. I work hourly and invoice them, and ostensibly get paid by check in 2 weeks, but of course sometimes it is faster, and often it is much (much) longer.
I have applied (four times!) for the Paycheck Protection Program but have not yet been approved so hopes of that happening are low.
I understand someone self employed can apply for unemployment because of coronavirus, and I would be claiming no or reduced work on a week by week basis. I have been working less hours, but it is variable amount week to week. It seems the unemployment system would want to know how many hours, and if I got paid for the previous week. How would I navigate that since the hours from the previous week and how much I made do not correspond to each other?
Do I calculate how much I made the previous week based on how much I will get once those hours are paid for? Do I report what I made that week but not the hours worked?
I live in NJ, and my multiple clients are in NYC. I work hourly and invoice them, and ostensibly get paid by check in 2 weeks, but of course sometimes it is faster, and often it is much (much) longer.
I have applied (four times!) for the Paycheck Protection Program but have not yet been approved so hopes of that happening are low.
I understand someone self employed can apply for unemployment because of coronavirus, and I would be claiming no or reduced work on a week by week basis. I have been working less hours, but it is variable amount week to week. It seems the unemployment system would want to know how many hours, and if I got paid for the previous week. How would I navigate that since the hours from the previous week and how much I made do not correspond to each other?
Do I calculate how much I made the previous week based on how much I will get once those hours are paid for? Do I report what I made that week but not the hours worked?
Yes, you should apply.
Here in WA the instructions said specifically that you are not required to look for work on a weekly basis, only file weekly claims.
For past income they ask you for your Quarterly Net estimates for Q1-Q4 2019, and a copy of your 2019 Federal Income Tax filing.
Be aware that when you get to the question about "Are you able to telework or work from home", I believe you're supposed to answer NO. My claim was rejected, and they gave answering YES to that question as the reason. I am now working to appeal that.
posted by humboldt32 at 2:26 PM on April 27, 2020 [1 favorite]
Here in WA the instructions said specifically that you are not required to look for work on a weekly basis, only file weekly claims.
For past income they ask you for your Quarterly Net estimates for Q1-Q4 2019, and a copy of your 2019 Federal Income Tax filing.
Be aware that when you get to the question about "Are you able to telework or work from home", I believe you're supposed to answer NO. My claim was rejected, and they gave answering YES to that question as the reason. I am now working to appeal that.
posted by humboldt32 at 2:26 PM on April 27, 2020 [1 favorite]
Best answer: I work hourly and invoice them, and ostensibly get paid by check in 2 weeks, but of course sometimes it is faster, and often it is much (much) longer.
It seems the unemployment system would want to know how many hours, and if I got paid for the previous week. How would I navigate that since the hours from the previous week and how much I made do not correspond to each other?
Quoting this page of the NJ UI website:
"Question 7 – Did you work between mm-dd-2020 and mm-dd-2020?
If you did any work between the designated dates, answer YES and report what you earned."
This is very similar to how it's worded in Ohio, and when you actually get paid by your clients (or employer) doesn't matter - what they want to know is what your earned, claimable income for the week would be; X hours @ $Y per hour = $Z total. You earned that money during that week, even if it doesn't actually hit your bank account until much later.
Self-Employed NJ Workers: Unemployment Benefits During the Coronavirus Emergency, also contains a downloadable FAQ pdf.
posted by soundguy99 at 4:43 PM on April 27, 2020 [1 favorite]
It seems the unemployment system would want to know how many hours, and if I got paid for the previous week. How would I navigate that since the hours from the previous week and how much I made do not correspond to each other?
Quoting this page of the NJ UI website:
"Question 7 – Did you work between mm-dd-2020 and mm-dd-2020?
If you did any work between the designated dates, answer YES and report what you earned."
This is very similar to how it's worded in Ohio, and when you actually get paid by your clients (or employer) doesn't matter - what they want to know is what your earned, claimable income for the week would be; X hours @ $Y per hour = $Z total. You earned that money during that week, even if it doesn't actually hit your bank account until much later.
Self-Employed NJ Workers: Unemployment Benefits During the Coronavirus Emergency, also contains a downloadable FAQ pdf.
posted by soundguy99 at 4:43 PM on April 27, 2020 [1 favorite]
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posted by ridogi at 2:05 PM on April 27, 2020