Being self employed can be a rewarding in business and other areas, but, there are a few disadvantages of being self employed, especially in matters of self employed unemployment benefits. Many folks have been asking a question that is, under what circumstances are self employed people eligible for unemployment benefits? Well, a Self Employed Person is generally eligible to collect unemployment benefits in the following circumstances as follows;

1. Business Incorporated as S-Corp or C-Corp:
If the self employed person's business is incorporated as a S-Corp, the entrepreneur's salary is subject to self employment tax although the shareholders' distributions are not subject to employment tax. In other words, the self-employed has effectively paid into the state's unemployment insurance fund and is thus eligible for unemployment benefits. A S-Corp is typically preferred for companies with 75 or fewer shareholders and confers upon the business the benefits of incorporation although it is taxed as if it were a partnership. Since the business is not taxed at the entity level, there is no problem of double taxation.

A self employed person, whose business is incorporated as a C-Corp, is also eligible for unemployment benefits since the the entrepreneur's salary is subject to self employment tax.

2. Unemployed on Account of Disaster:
People, who have been rendered unemployed on account of an event that has been declared as a major disaster by the President of the United States, are entitled to receive disaster unemployment assistance provided they are not eligible for regular unemployment insurance benefits.

3. Paid Unemployment Taxes:
Self-employed people, who have registered with the state authorities and have volunteered to pay unemployment taxes, are entitled to receive unemployment benefits since they have contributed to the state's unemployment insurance fund.

Filing for Unemployment Benefits If Self Employed
It is advisable to contact the State Unemployment Insurance agency soon after being rendered unemployed. People, who are eligible to collect unemployment benefits, should file their claims in accordance with the state's instructions regarding the same. In case of disasters, the victim is expected to file claims in accordance with announcements regarding the availability of Disaster Unemployment Assistance. Again, the State Unemployment Insurance agency may be contacted for further details regarding applying for unemployment benefits.

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