Unemployment for freelancers?
Out of context: Reply #2
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- ukit0
According to some guy in a forum (first result for "can freelancer collect unemployment")...
Unemployment is a state benefit and is not covered by the self-employment tax (FICA), which is federal. In California, where I am, it is required that employers pay into unemployment, but owners of companies, which include self-employed people like contractors, are not allowed to pay into the system or receive benefits, ostensibly because you are not employed by anyone and therefor cannot be layed off, the event that triggers eligibility to receive unemployment benefits. In California you are either a wage employee or an independent contractor. Independent contractors cannot be paid hourly or directed by an employer. They are hired to accomplish a particular task for a particular price. If they are paid hourly, they must be considered wage employees and all payroll taxes, including unemployment paid. In this case they do qualify for unemployment if layed off.