The Coronavirus pandemic is a trying and uncertain time for people all over the world. In the US, it forces people to stay home and businesses to close for two or three months — at this point, there is no definite end date. Business owners and employees are left wondering what to do and what is going to happen to their livelihoods. And independent contractors are wondering if they can make it from this side of the pandemic across the unknown to the other side.
Independent contractors are those who provide a service under a stand-alone agreement or contract, as opposed to working as a salaried employee. They work where they are needed, as they are needed, and in a normal economy, fill an important void. During these unusual times, their incomes are threatened, so the government has put aid packages in place for them. Independent contractors, especially those who provide residential services, such as HVAC and siding contractors, need to know how the aid packages will impact them. This post details some of the ways that the government’s stimulus package will affect independent contractors.
Independent Contractors’ Top Three Questions About the Stimulus Package
1. How Does Unemployment Insurance Work?
With the stimulus package, the American federal government expanded unemployment benefits to those who are self-employed. This means that self-employed individuals can collect income that they otherwise would not have been able to receive prior to the Coronavirus situation. Independent contractors and self-employed individuals can qualify for unemployment benefits for several reasons related to the global pandemic, such as loss of income due to the virus, or even loss of income due to the need to care for one’s child during school closures.
A business owner who sells solar panels in Cherry Hill, NJ, pointed out that this process may not be easy. To qualify for unemployment benefits, one must prove that they are not eligible for other benefits, and that can be a tedious process. He urges other independent contractors to do what they can now and to be proactive in getting their benefits, as it could take a long time, depending on the state. Remember, most states’ unemployment offices are deluged with applications right now.
2. What About Health Insurance?
Independent contractors who can’t pay for their current health insurance or healthcare because of employment issues related to the pandemic may be able to enroll in Medicaid for the time being. If your income has dropped below a certain threshold, you could qualify for Medicaid and should do so right away, as the number of people enrolling in this government-provided health insurance plan has increased dramatically.
3. How Will I Know If I Am Approved for Unemployment Benefits?
Independent contractors will not receive written confirmation that they have qualified. Instead, they will receive their benefits via direct deposit to their bank account, or they will receive a debit card to access their approved amount of benefits. The first payment can take up to three weeks; however, in most cases, it is much sooner.
If you apply for unemployment benefits and are not approved, you will receive written notification.
Be Proactive During Trying Times
If you are self-employed or an independent contractor, it’s important that you apply for benefits sooner rather than later. As more and more people apply, it takes longer and longer to process them all, and that can result in delayed payments, making your life even more stressful. If you have been impacted by the Coronavirus, do what you can today, and apply for the benefits you may be entitled to now.
About the Author
Jennifer Bell is a freelance writer, blogger, dog-enthusiast, and avid beach-goer based in southern New Jersey.
The post Top 3 Questions Independent Contractors Are Asking About the coronavirus Stimulus Package appeared first on ChoreRelief.
source https://chorerelief.com/covid19-stimulus-package-contractors/
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