Maryland Memo - Using Self-Employed Independent Contractors
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FAQ
A) Yes. There is a special program which provides benefits to those who are not traditionally eligible for unemployment insurance, which includes gig workers (Uber, Lyft, AirBnB hosts, etc.), freelancers, and independent contractors.
Maryland Unemployment for business owners.Starting Friday, April 24, those who are self-employed, independent contractors, gig workers, or have insufficient work history will be able to apply online.
Workers in Maryland who are independent contractors are not entitled to unemployment benefits if their contract expires or the company or individual who hired them lets them go.
Do independent contractors qualify for unemployment insurance? Yes, with the passing of the CARES Act, independent contractors, gig workers, and self-employed individuals are eligible for unemployment insurance if they are unable to work due to COVID-19.
The state of Maryland does not require general contractors to obtain a license to do business. It is not necessary to have a license if you are doing electrical, plumbing, or HVACR work or are working on home improvement projects. A license is issued by the Department of Labor, Licensing and Regulation (DLLR).
Independent contractors are self-employed workers who provide services for an organisation under a contract for services. Independent contractors are not employees and are typically highly skilled, providing their clients with specialist skills or additional capacity on an as needed basis.
In Maryland, a contractor license is required if you wish to work on home improvement projects or do electrical, plumbing, or HVACR work.
Pandemic Unemployment Assistance (PUA)Provides benefits for claimants who are ineligible for regular UI and unemployed due to a COVID-19 related reason. This includes gig workers, independent contractors, the self-employed, and those with insufficient work history.
To be declared an independent contractor the individual (1) must be free from control and direction over his work both in fact and pursuant to the contract between the employer and contractor; (2) must be customarily engaged in independent business or contracting; and (3) the work must be outside the usual course of
Although independent contractors do not have the right to workers' compensation benefits in Maryland, there are some cases in which employers have misclassified a worker as an independent contractor when the worker is actually an employee.
