1. Gaining Unemployment Benefits When Self-
Employed
Gaining unemployment benefits or insurance when self-employed is a bit different from people
who are not employed in their own businesses. We will look at this in a short while but first a
quick recap to enable us understand the concept better. Unemployment insurance usually require
one to fulfill certain conditions that have been set by the unemployment office in one's state.
These conditions normally differ from one state to another but one thing stands out for one to be
eligible. A person seeking unemployment benefits should have lost his/her job as a result of
situation(s) beyond his/her control. Money for funding unemployment benefits comes from a tax
usually paid by employers. That said, let's now look at how gaining unemployment benefits
when self-employed can be achieved.
Enter Get The Unemployment Benefits Guide (US!
Gaining unemployment benefits when self-employed requires you to have a business classified
as either an S-Corp or C-Corp. An S-Corp business owner pays self-employment tax to the
unemployment insurance fund and that is how he/she qualifies to receive unemployment
benefits. A certain percentage from the business's salary-in total-is deducted to contribute to this
fund. The amount paid to the investors is not taxed again which eliminates the possibility of
double taxation. What this means is that every investor with shares in the business is not taxed
individually but the total salary itself before it is distributed to the investors. This type of
business suits companies with less than 75 shareholders best.
A business incorporated as a C-Corp also involves deduction of self-employment tax from the
entrepreneurs' salary. However, double taxation is carried out here with the salary being taxed
(corporate level) as well as the dividends paid out to the shareholders (individual level). Thus,
this provision makes gaining unemployment benefits when self-employed as a C-Corp business
less desirable.
The above self-employed businesses we have looked at are owned by many individuals.
However, other ways exist in which gaining unemployment benefits when self-employed can be
achieved. It is also possible in businesses owned by a single individual provided that your
business is registered with the relevant authorities and you pay unemployment taxes.
Enter Get The Unemployment Benefits Guide (US!
Just like all other employees, self-employed individuals should notify the unemployment office
in their locale as soon as they are no longer employed. In case a disaster happens to affect your
business, file your claims with the Disaster Unemployment Assistance office who will offer you
unemployment benefits as long as the disaster has been declared as such by the President. These
benefits are given for a period of twenty-six weeks and an extension of the same is also
2. considered. Another thing you need to be aware of is that these benefits resulting from a disaster
are not given if one is on the regular unemployment insurance.
Being unemployed can be the most difficult time of your life. That's why
http://Unemployment.info was created - to make things a little easier. Whether you need to file
for unemployment, need help with your job search, or need information on unemployment
benefits, Unemployment Info Center is your one-stop unemployment resource!
