Self-contractor unemployment in Texas: What You Need to Know
As a self-contractor in Texas, you may have faced challenging economic times due to the COVID-19 pandemic. With the spread of the virus, many businesses shut down, leading to unemployment for millions of people, including self-contractors.
If you`re a self-contractor in Texas who has lost work due to the pandemic, you may be eligible for unemployment benefits. However, the process can be confusing, and there are certain things you need to know before applying.
Here`s what you need to know about self-contractor unemployment in Texas:
1. Self-contractors are eligible for unemployment benefits.
In Texas, self-contractors can qualify for unemployment benefits under the Pandemic Unemployment Assistance (PUA) program. This program was created to support individuals who are not eligible for traditional unemployment benefits, including self-contractors, gig workers, and freelancers.
To qualify for PUA, you must have lost work due to the pandemic and meet certain eligibility criteria, such as having a valid Social Security number, being able and available to work, and not having any disqualifying issues, such as being fired for cause.
2. You need to apply online.
To apply for PUA, you need to submit an application online through the Texas Workforce Commission (TWC) website. You will need to provide information such as your Social Security number, employment history, and the reason for your job loss.
The TWC will review your application and determine if you are eligible for benefits. If you are approved, you will receive weekly benefits based on your previous earnings, up to a maximum of $521 per week.
3. Benefits are taxable.
It`s important to note that unemployment benefits are taxable income. This means that you will need to report your payments on your tax return and pay any taxes owed.
You can choose to have taxes withheld from your benefits by completing a W-4V form, which will reduce the amount of taxes you owe at the end of the year.
4. You will need to certify your eligibility every week.
To continue receiving benefits, you will need to certify your eligibility every week through the TWC website. This means that you will need to confirm that you are able and available to work and report any earnings you have received.
If you fail to certify your eligibility, your benefits may be delayed or even denied.
In conclusion, self-contractor unemployment in Texas can be a confusing and stressful process. However, by understanding the eligibility criteria and application process, you can increase your chances of receiving the benefits you need to get through these challenging times.