Knowing the Difference Benefits YouView the PDF Show All business in Pennsylvania must understand that under the Pennsylvania Unemployment Compensation, or UC law, for benefit and tax purposes, the term “employee” is presumed to apply to every individual who performs services for which he or she is paid. Unless specifically excluded from coverage, all such work under any contract of hire, express or implied, written or oral, including work performed in interstate commerce or as an officer of a corporation is covered by the UC Law, with one exception. Services performed by a worker will be exempt under the benefit and taxing provisions of the UC Law if the individual is an “independent contractor.” To be excluded from coverage, the individual who performs the services must meet two conditions pursuant to Section 4(l)(2)(B):
Only if both of these conditions are met to the satisfaction of the department will the individual be regarded as an “independent contractor.” Unless and until those criteria are met, the services will be “employment” subject to the coverage of UC law. There are additional requirements if an individual performs services in the construction industry. In that case, the individual will be designated as an independent contractor only if he or she (1) has a written contract to perform such services, (2) is free from direction or control over performance of the services both under the contract of service and in fact, and (3) is customarily engaged in an independently established trade, occupation, profession or business, the individual must:
The following factors are not conclusive in determining “independent contractor” status:
A written agreement between a worker and the business does not control the worker’s status. Pennsylvania’s UC Law requires an examination of the facts to determine if the worker is a legitimate independent contractor. Whether the services are performed on a full-time or part-time basis is immaterial to an individual’s employment status. An investigation into an individual’s employment status may occur in connection with a UC claim filed by an individual who asserts that he or she was an employee rather that an “independent contractor.” Also, the Office of Unemployment Compensation Tax Services randomly selects businesses for audit to verify compliance with the UC Law. Businesses must maintain sufficient documentation to support the reasons for classifying any individual as an “independent contractor.” Examples of relevant documentation include: copies of the individual’s preprinted invoices, copies of signed contracts, bid forms, certificates of insurance, business forms and stationery, federal and state tax ID numbers, business telephone directory listings, public advertisements soliciting business, articles of incorporation and leases on business properties. The department will use all available information to determine a worker’s status. Call 1-866-403-6163, and select option 3, weekdays from 8:00 am to 4:30 pm, with any questions concerning employees versus independent contractors or go to: www.getclassified.pa.gov Although the Department has done its best to provide accurate information, it is not bound by any statements herein which may be inconsistent with the law. Auxiliary aids and services are available upon request to individuals with disabilities. UCP-32 REV 11-16 Can selfUnder normal situations, self-employed people- such as freelancers, independent contractors, and sole proprietors are not eligible for unemployment advantages.
Do independent contractors qualify for EDD?For Small Business Owners, Self-Employed and Independent Contractors. Any self-employed person, independent contractor, or general partner who meets the requirements can apply for Disability Insurance Elective Coverage (DIEC). It is not required that all active general partners be included in the application.
CAN 1099 workers get unemployment in Pennsylvania?Those individuals who are eligible for benefits under PUA are the self-employed, independent contractors, and gig workers, who are not eligible under Pennsylvania state law, and individuals who lack sufficient work history or have previously exhausted their state benefits.
Can independent contractors get unemployment in California 2022?If you're self-employed or an independent contractor, you are not automatically eligible because your employer — you — didn't pay the taxes that fund the UI program. You'll be eligible only if you worked as an employee within the previous 18 months for a company that paid into the system on your behalf.
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