These plans also help protect the business community at large, as well, since recently unemployed workers will still provide a market for them to purchase groceries, pay rents and mortgages and other vital goods and services. Generally, Unemployment insurance benefits only apply to statutory employees who meet certain qualifications. Independent contractors typically do not qualify for unemployment compensation. If you filed a 1099 because you were primarily self-employed, you probably won’t be eligible for unemployment. In most states, companies pay a tax to cover unemployment insurance so that separated employees can benefit from it. If you own a business or work as an independent contractor, such contributions are unlikely to apply to you.

• The right of control, whether or not it is exercised, is the most important factor in determining the relationship.
• Contract employees can work full-time, 40 or more hours per week, or part-time, 20 or less hours per week.
• So, the benefits are based upon how much you made before you became unemployed.
• If you are an affected worker, whether you’re considered an employee or independent contractor, you can apply for benefits through your state’s unemployment office.

And the Amazon package-delivery gig works best for drivers young enough and strong enough to lift and carry heavy packages. Ridester conducted a survey of drivers the week after the lockdowns began, in mid-March, and found that most drivers had lost 80 percent or more of their business in less than a week. Even though Uber and Lyft drivers were designated as essential workers in much of the country and were therefore allowed to keep working, there was simply no business for them. The information provided on this website is not an offer to sell you insurance. It is provided for assistance in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. But Stettner says one good option may just be searching for support groups on social media and hearing from other out-of-work Americans.

Tax, Licenses & Permits

Once the employee makes a certain amount of money, the employer no longer pays unemployment insurance for the remainder of that year. The state in which you live manages the unemployment program in the event that you lose your job, which means qualification requirements for unemployment vary by individual state under the auspices can w2 contractors get unemployment of the federal government. As an employee you are eligible for unemployment, but as a self-employed subcontractor you generally are not. Even if you aren’t eligible for unemployment while you’re working your 1099 job, you may be able to resume receiving unemployment benefits under your previous claim when your contract job ends.