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Pandemic Unemployment Assistance (PUA) offered for self-employed business owners and independent contractors

This information is summarized from the Employment Development Department information on the Pandemic Unemployment Assistance program: https://edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance.htm

The Pandemic Unemployment Assistance (PUA) program was created as part of the CARES Act to provide support for business owners, independent contractors, self-employed workers, freelancers, and gig workers who do not qualify for traditional unemployment benefits.

You may qualify for PUA benefits if you are unemployed, partially unemployed, unable to work or unavailable to work as a direct result of a COVID-19 related reason and you meet the additional criteria, including:

  • You are a business owner, self-employed, independent contractor or gig worker (and are not participating in the UI Elective Coverage program).
  • You don’t have sufficient work history. This generally means you don’t have enough wages reported as an employee during the last 18 months to establish a regular UI claim. This could be the case if you are self-employed or an independent contractor. 

The main page for the Pandemic Unemployment Assistance program is located at: https://edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance.htm

Learn more about eligibility in the Employee Development Department’s PUA FAQ at: https://edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance/faqs.htm

PUA Benefits

If you qualify for PUA, your initial weekly benefit amount will be $167 for
claims starting February 2, 2020. Claims between March 29 to July 25, 2020 will have an additional $600. Your total benefits will last for 39 weeks
(including any regular UI and extended benefits you might qualify for).
Once the EDD verifies your income, your weekly benefit amount may increase. Any increase will also apply retroactively and the EDD will notify you of any increase you are entitled to receive.

You will be paid benefits from the date you became unemployed as a result of COVID-19, regardless of when you submitted your claim application.

Tips on Applying for PUA

If you are a small business owner, independent contractor, self-employed worker, freelancer, or gig worker, here’s how to answer key questions in the application form:

  • On the Employment History screen when you supply your last employer information, select “No”.
  • On the Availability Information page, answer question 7 with “No”.
  • On the Disaster Information page, answer question 1a.3 with “You are an independent contractor.” If you got paid in cash, select “None of these options apply to me.”

Everyone (UI and PUA applicants) uses the same form. Register or log in
with Benefit Programs Online and click “File New Claim.”

  • File a new claim if you have already applied for UI, but are eligible for PUA because you are a business owner, independent contractor, self-employed worker, freelancer, or gig worker affected by COVID-19, and you have not already appealed a $0 award notice, been asked to verify your identity, or requested a wage investigation.

Additional PUA Considerations

If you have run out of benefits, you are unemployed, and your benefit
year has expired, reapply for benefits through UI Online.

If you have run out of benefits but you are still within the one year that
your claim is good for, and your benefits ran out before February 2, you are probably not eligible for PUA. (You would have to show that you are unemployed because of COVID-19.) You may however be eligible for the federal 13-week extension. The EDD will notify you about what to do.

If you have run out of benefits but you are still within the one year that
your claim is good for, and your benefits were for weeks you spent unemployed between February 2 and March 21, the EDD will send you a form to fill out to supply information not already in your claim. When you get the form, fill it out and return it.

If you received your last payment for weeks you were unemployed on
or after March 21 and are still within your benefit year, the EDD will automatically extend your claim for 13 weeks. They will notify you that
they have done that and when you can certify.

If you applied for unemployment assistance, but didn’t qualify, you could be eligible for PUA. They will send you a form to fill out to supply information not already in your account. When you get the form, fill it out and return it.

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