Does unemployment exist for self employed workers, both home-based and otherwise? Small business owners, entrepreneurs and independent contractors rely upon themselves to find work and earn income- they have no employer to rely upon. But does this mean they also have no government resources to provide help when they need it?
Unemployment for the Self Employed
Many of those who belong to the work force understand, at least in part, how government-sponsored unemployment benefits work. Sometimes, professionals lose their jobs through no fault of their own, and in times when the economy is bad it can be exceedingly difficult to find a new job to earn money. When there seems to be no other options for making money, professionals can take advantage of unemployment benefits which pay a percentage in place of usual earnings. This is all well and good for those who work for an employer…but what about the self employed?
- The United States Department of Labor offers a Self Employment Assistance program which provides unemployment-type benefits to independent workers and small business owners who need a little help in times of lean. Like unemployment benefits, professionals using this program will receive financial support until they can operate independently again. Currently, this program is available only in a handful of states.
- The Canadian government offers a similar Self Employment Program for independent individuals who find themselves having financial difficulty. This program, like its U.S.-based counterpart, is designed to provide funds to entrepreneurs who want to start their own businesses but find themselves struggling in money matters.
Many states may not provide assistance for self employed workers, but they do provide something that can be just as useful: unemployment insurance. These handy little policies work the same way any other insurance might. First, home-based workers and other types of self employed professionals purchase the policy through their state government. In times when income is lean and work is hard to find, the benefits begin to kick in.
Unemployment insurance programs are actually offered as part of the federal program which provides other benefits, such as the self employment assistance program. However, individuals may only obtain these policies by contacting their local state government offices. These agencies will provide applications and other information. Unemployment insurance does vary from traditional unemployment programs, as professionals must first pay on their policies for a certain amount of time before they can expect to receive any benefits.
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