Unemployment Benefits for Self Employed
Prior to the pandemic, unemployment compensation benefits were only available to traditional W-2 employees. The Federal CARES Act has created a new category called “Newly Eligible Workers” which includes the self employed and independent contractors.
There are two layers of Unemployment Compensation. State Unemployment Benefits and Federal Unemployment Benefits. You only need to apply for State Unemployment Benefits. Federal Unemployment Benefits will be paid automatically to anyone who is receiving State Unemployment Benefits. The Federal Unemployment Benefit is a flat $600 per week. The benefit starts on April 5, 2020 and ends on July 31, 2020.
In Pennsylvania, the State Unemployment Compensation Benefit is equal to 50% of your weekly earnings up to a maximum weekly benefit of $573. Benefits can last up to 26 weeks. If you are working part time you will still be eligible for the full benefit until your part time earnings exceed 30% of your unemployment benefit. After that your benefit will be reduced dollar for dollar until it reaches zero. You can find an example here.
The Pennsylvania application for “ Newly Eligible Workers” is different from the application used by W-2 employees. As of April 18, 2020 the application for “Newly Eligible Workers” is called “Pandemic Unemployment Assistance” and is available here.
The Pennsylvania Department of Labor also offers this guide to scenarios and benefits available: :
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