In this economy, self employment may be a good choice for many of us. In order for self employed folks to be eligible for unemployed benefits, the person should fall into one of the following categories.
• If the person runs a business that is incorporated as S-Corp, then the entrepreneur should pay a self employment tax from his salary. The shareholders are not required to pay this tax though. Since the individual has paid for the unemployment funds by this means, he or she becomes eligible for the benefits.
• If the business is registered as C-Corp, even then the entrepreneur needs to pay self employment tax and hence is eligible for these benefits. However, C-Corp companies need to pay double taxes – one at the corporate level and another amount while distributing the dividends to the shareholders.
• If the US president declares that an event is a major disaster, then people who have become unemployed due to this event are eligible for disaster unemployment assistance if they do not receive normal unemployment insurance benefits.
• Self employed people can also voluntarily contribute unemployment taxes in which case they become eligible for the unemployment insurance funds of their respective state.
If a self-employed individual becomes unemployed, then he or she should get in touch with the State Unemployment Insurance Agency. A claim is filed according to the requirements of the particular state in order to collect the benefits. For most of the self-employed individuals, the unemployment benefits are paid for about 26 weeks. However, in certain cases, the benefits may be extended if necessary.
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