Unemployment Questions from Drivers

We have received a few driver inquiries into the newly passed bill granting unemployment pay weekly for up to 39 weeks. As always, we strive to keep our drivers informed of current events and any news that might impact the service you provide.  

Here is the link to the Bill:  For specific information as it pertains to individuals that are self-employed, please see pages 84-88.

https://files.taxfoundation.org/20200325223111/FINAL-FINAL-CARES-ACT.pdf

As you are aware, companies that have employees pay unemployment tax (UI tax) to the state they work in. These companies report the employee’s name, social security number, hours worked, and net pay. This allows the state to calculate any unemployment pay, the individual is entitled to have based on that state’s regulations.

As self-employed individuals, there is no company paying or making contributions to the State regarding unemployment tax. (please reference the Cares Act in the above link).

The federal government realizes people are losing their jobs as a direct result of COVID-19.  They are looking to stimulate the economy by injecting their own unemployment pay.  The federal government wants to ensure everyone gets unemployment pay if they can’t work because of the virus.

There are certain requirements to qualify for federal unemployment. These requirements are outlined in the Cares Act Link above.

To get federal unemployment pay, people can apply with their states. Some states may not be ready to accept your claim yet. They must do their own legislation to accept the CARE Act.

Please remember that just because you are self-employed does not mean you automatically qualify for this unemployment pay. You must prove you are affected by the virus and can’t work. Not wanting to work is not a valid reason as outlined in the document.