Missouri Memo - Using Self-Employed Independent Contractors
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FAQ
The self-employed, gig workers and others that Congress made temporarily eligible for unemployment benefits can now claim them in Missouri. In a news release Monday, the state labor department said it is now processing claims for those newly eligible and laid out the process for filing for the new federal program.
The DES notification will require those self-employed, gig workers, independent contractors, and those who otherwise do not qualify for regular unemployment benefits to provide proof of employment and they may also choose to provide proof of earnings to potentially increase the amount of benefits received each week.
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.
Unemployment compensation under the PUA program provides for up to 39 weeks of benefits for individuals who are self-employed (including independent contractors).
To qualify, individuals must 1) have earned at least $5,000 in self-employment income in the most recent taxable year before they applied for regular unemployment, 2) submit documentation substantiating their self-employment income, and 3) must be receiving benefits from regular unemployment, Pandemic Emergency
PUA provides benefits to qualifying individuals who are otherwise able to work and available for work within the meaning of state law, except that they are unemployed, partially unemployed, or unable or unavailable to work due to COVID-19 related reasons, as defined in the CARES Act.
The Missouri Supreme Court has defined an independent contractor as "one who, exercising an independent employment, contracts to do a piece of work according to his own methods, without being subject to the control of his employer, except as to the result of his work" (Vaseleou v. St.
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 law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
