The Self-Employed Guide to COVID-19 Assistance
For some, no job in the world can beat the joy that comes from being your own boss. For all of you entrepreneurs, being self-employed is part of the American Dream! My Absolute Beauty understands that the current Coronavirus outbreak is taking a significant toll on self-employed individuals and small businesses. In this blog, we will highlight the many forms of assistance that are available to the self-employed.
Self-Employed Financial Assistance During Coronavirus
For small businesses and self-employed individuals, many programs in effect can help get you through the current Coronavirus pandemic. Recent legislation has opened many opportunities that, if utilized, can help you proceed through these uncertain times like a pro!
Keep reading for a list of programs that have been put into place to help self-employed individuals navigate the COVID-19 pandemic.
CARES Act Unemployment Benefits
The Coronavirus Aid, Response, and Economic Security (CARES) Act opens up the opportunity for many self-employed individuals to collect unemployment benefits that they would typically not qualify to receive.
Benefits from the CARES Act:
- Inclusion of Self-employed individuals in unemployment benefits
- Eligible workers receive $600/wk additional benefits up to 4 months
- Provides extra weeks of benefits
The CARES Act allows for self-employed individuals impacted by COVID-19 to receive unemployment benefits. The amount received will be based on previous income and will vary based on location and benefit guidelines. To determine eligibility and apply, visit the unemployment site for your state.
Payroll Protection Program For Self-Employed Persons
The Payroll Protection Program, as highlighted in our last blog, grants forgivable loans to small businesses and self-employed individuals affected by COVID-19. This loan is to provide the recipient with the ability to cover their payroll and other specified expenses through existing SBA lenders.
COVID-19 Tax Credit for the Self-Employed
The Families First Coronavirus Response Act provides a refundable tax credit for eligible self-employed persons who must self-quarantine, obtain a diagnosis, or comply with a self-isolation recommendation for Coronavirus.
Those who regularly work for themselves for up to ten days during the year may qualify for the following tax credits:
- Leave For Individuals:
- Based on the number of days during the tax year that the person is unable to work for the following Coronavirus reasons:
- Subject to a federal, state or local quarantine or isolation order
- Have been advised by a health care provider to self-quarantine
- Showing symptoms of COVID-19 and is seeking a medical diagnosis
- Up to 100% of the person’s average daily self-employment income for the year, to a maximum of $411.
- Leave to Care for Family:
- Based on the number of days where an individual cannot do their regular work for the following Coronavirus reasons:
- Caring for someone subject to a federal, state or local quarantine or isolation order
- Caring for a child whose school is closed or child care isn’t available
- Is experiencing any other substantially similar condition
- Covers up to 67% of average daily self-employment income up to 10 days (maximum of $200) that the individual could not do their regular work for the listed reasons.
For more information regarding these tax benefits, visit the IRS COVID-19 Tax Credit Page.
Keep Yourself Updated on Aid Programs Available to you
As the Coronavirus pandemic continues, so do the efforts of the local and federal government to assist those who are affected. New programs are being introduced constantly. Be sure to check the National Governors Association for a list of resources and updates in your specific state.