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Can A Self Employed Person Collect Unemployment Benefits?

  1. ngureco profile image83
    ngurecoposted 8 years ago

    Can A Self Employed Person Collect Unemployment Benefits?

  2. CorinneM profile image61
    CorinneMposted 8 years ago

    In general, no. But there are some circumstances under which a self employed person can collect unemployment benefits. Your best bet is to contact your state unemployment office to see if your situation is such that you are eligible.

    You don't say what your circumstances are - are you a long-term contractor, or do you have a business that is incorporated & you can't find work, how long have you been self employed and where did you work prior to that?

    The specifics of your situation will dictate whether or not your are eligible. Good luck!

  3. profile image0
    dennisemattposted 8 years ago

    What Corrine said, about specifics, is true. I do, however, know of one person who is self employed. He owns his own contracting business. (This may depend on the state)..but he had Inc., as part of his business name. As long as he was registered as an Incorporation, he had to  pay in unemployment benefits to the state for all employees, including himself. BUT, he was able to claim unemployment also. Check with your state.

  4. dragonson profile image57
    dragonsonposted 8 years ago

    Yes and No if you have paid tax as a self employed person, then yes you can. Though if you have not paid your tax then no you can not, claim unemployment benefits.

  5. EtselecMik profile image54
    EtselecMikposted 8 years ago

    Alot depends on which state you are filing for unemployment benefits.  On the State of Texas Workforce Commission website where I currently request payment for unemployment claims on a bi-weekly basis, I am repeatedly required to answer "yes" or "no" to whether I was self-employed during that time period.  I always select "no".  However, I am certain that if I were to select "yes" to that question, then I would be required to report any pre-tax earnings from self-employment for that period. I am not self-employed, I am laid off but my employer recalls us from time to time for a few hours here and there.  When I work I have to report my pre-tax earnings for the reporting period.  Self-employment would ultimately effect the amount you would get paid by the state.   Furthermore, in order to be eligible for unemployment benefits you have to have worked for several or more quarters and paid into the system through your previous employers and/or paid by yourself (self employed).  If you didn't work enough or didn't pay into it then you won't qualify for benefits.  You should contact your local Unemployment Office, they will answer any questions you may have and should assist you with filing if you are eligible. 

    Also benefits from unemployment are generally paid without taxes being deducted, so you will need to keep this in mind come tax time in April as it is reportable income.  However, in Texas we are given the option to complete a form requesting they deduct tax from our payments but the amount deducted is a set amount for everyone.  If you are exempt from tax or get a full refund each year and expect to be exempt and get a full refund this year then I wouldn't have tax deducted. 

    Whatever you do, do not falsify or lie on any of the questions or amounts reported. If caught, you could lose your benefits and be required to payback what you were not entitled to and/or overpaid.  The state can/will garnish any future wages you earn from any future employment in an attempt to recoupe any overpayments or ineligible payments until your debt is paid off.  I know someone very closely or was fired and received $3K in payments before the employer argued the case and won.  She was forced to repay the entire $3K so I know for a fact they can do it.

  6. profile image47
    model4teesposted 8 years ago

    Each country has it's own rule for paying tax, and tax payment is above fix amount of tax Slab. If an unemployed per son earns below the Tax slab then he is not liable to pay the tax.

  7. Scott36 profile image61
    Scott36posted 8 years ago

    Only if you pay into them and qualify. The other way is if you are married and if your spouse qualifies.

  8. profile image44
    fills2008-interneposted 8 years ago

    From the answers above, I could not tell how to handle my situation.  I am currently collecting unemployment benefits.  I am also currently seeking temporary consulting/advisory roles.  I had one role during the summer where I was paid and did not collect unemployment benefits - taxes will be paid on that self employed income.  I was trying to figure out whether I can not collect unemployment benefits while deducting business expenses (fairly substantial) related to finding new projects.  I guess the answer might be "no".

  9. lctodd1947 profile image81
    lctodd1947posted 8 years ago

    I have never heard of someone who is self employed drawing unemployment unless it was a corporation and you were paid a salary and the unemployment benefit was paid into the state by the corporation. A sole proprietor (schedule C) income means that you would have to pay in unemployment benefits for yourself and in the Schedule C, I have never paid unemployment taxes and I don't think anyone else does.  If you had someone working for you and you would pay on them but I have been schedule c at different times and never paid the tax.

    To draw benefits the employer for which you worked has to pay in the unemployment benefits and allows you to collect the benefits if your case meets certain questions.  Unless something has changed that I don't know about. Under certain circumstances you can draw off you nearest employer if they paid in the tax and you did not quit your job but was laid off....I could be wrong but this is what I know.

  10. profile image0
    Dog On A Missionposted 8 years ago

    In Britain, you would only get Job Seekers Allowance if you were actively seeking work for someone else according to certain agreed criteria.

    However, there may be government schemes available for long term unemployed people who want to get off benefits and start their own business.

    As for the USA and Canada, I don't know.

  11. ajuvr profile image66
    ajuvrposted 7 years ago

    collect anyway = makes anybody benefited .M'ploy yourself

  12. onceuponatime66 profile image61
    onceuponatime66posted 7 years ago

    I think the laws are different in each state.  I believe that if you pay "IN" then you can draw out.  I like all of the helpful advice below my answer or above.  Great question!

  13. Abbasangel profile image73
    Abbasangelposted 7 years ago

    In Australia, there is a benefit to help you get up and running with a business, and you are elligible for benefits if you can prove that you haven't been making money and they pay you based on a percentage and you have to give them quartely statements, of earnings and expenditures.

  14. profile image69
    Writer Chuckposted 7 years ago

    In the USA it depends on whether your a soul proprietor or a corporation.
    if a corporation it depends on how much stock you hold. most important it depends on your contrabutions to the unemployment insurance fund.

  15. alexgg profile image55
    alexggposted 7 years ago

    anyway , do everything with a strong mind. collect the best way for your good job..

  16. wealthseeker profile image59
    wealthseekerposted 7 years ago

    It might be varied by different states in USA. Best way to be sure is to double check your local policy so you do not get in hot water.

  17. Scott_Grigg profile image41
    Scott_Griggposted 7 years ago

    Generally, the answer is no.  And the various state's unemployment centers will ask if you were self-employed for that reason.

  18. profile image44
    reddybobbyposted 7 years ago

    self employed have no restriction complete depend on him only. but these person depended on company where ever he works under rules&regulation of companies he has to work.

  19. nightwork4 profile image59
    nightwork4posted 7 years ago

    in canada you can. i'm not sure about anywhere else but as of a year ago we are able to .

  20. Tannert profile image61
    Tannertposted 7 years ago

    This is a tough question to answer without more details about your exact situation.

    Sole-Proprietors (like myself) with no regular hourly or salaried employees do not have to pay for unemployment insurance, but we also cannot file for unemployment ourselves. I am not sure if you can "opt-in" to paying unemployment in this situation, but that may be beneficial for some seasonal business owners.

    If you were previously employed and lost your job but are now self employed, then you can still qualify for unemployment depending on what your self-employment income is.

    I have known seasonal workers who would work part time jobs over the winter while collecting unemployment. As long as their income did not hit a certain threshold, it would not affect their unemployment benefits.

  21. Alejendro profile image60
    Alejendroposted 7 years ago

    Unemployed or self-employed.. there's no benefit here in India..

  22. profile image45
    sassysamposted 7 years ago

    My son in law was self employed for many years and has recently lost his business.  He was not able to collect unemployment benefits.  His business was in California.

  23. kevin.howell profile image60
    kevin.howellposted 6 years ago

    Only if they paid it in, which is usually not the case.

  24. Freegoldman profile image36
    Freegoldmanposted 6 years ago

    I never heard off such a thing.....Nd i dnt think its possible becz self employment is already a type of employment.

  25. terrektwo profile image84
    terrektwoposted 6 years ago

    Not sure if they can in the US but they can in Canada as long as they are paying EI on their earning from their self employment.