Minnesota Unemployment is distributing benefits to self-employed and independent contractors. Minnesota Unemployment Insurance has provided more detailed information on the Pandemic Unemployment Assistance (PUA) program, as well as the Federal Pandemic Unemployment Compensation (FPUC).
An Overview for Self-employed People and Independent Contractors
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress on March 27, provides new benefits for self-employed people and independent contractors.
- Pandemic Unemployment Assistance (PUA) program – provides weekly benefit payments for self-employed people, independent contractors and others who are not eligible for regular unemployment benefits.
- Federal Pandemic Unemployment Compensation (FPUC) – $600/week additional payments for people receiving regular or Pandemic Unemployment Assistance.
Two of our Most Frequently Asked Questions
1. Am I self-employed or an independent contractor? I heard that the stimulus package from Congress includes benefits for me. How do I apply for unemployment benefit?
If you:
- Own a business that is registered with Minnesota Unemployment Insurance:
- You elected coverage for yourself; and,
- Paid unemployment taxes on yourself, you may be eligible for regular unemployment benefits
If you have a business but were not required to register with Minnesota Unemployment Insurance, you may be eligible for PUA benefits. The only way to know if you qualify is to apply.
If you are an independent contractor whose primary source of income was affected by the COVID-19 pandemic, you may be eligible for PUA benefits. The only way to know if you qualify is to apply.
2. How much will I receive in PUA benefits?
If you are eligible for PUA, your benefit will be based on your net income as reported on your most recent tax return. The minimum PUA benefit amount is $234. If your net income was less than $24,340, you will get the minimum benefit amount.
Under the CARES Act, you will receive an additional $600 on top of your PUA benefit.
Questions? Visit with our payroll expert, Lori Reich at (320) 214-2906.
