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New Jersey DOL and Workforce Development Releases Guidance for Pandemic Unemployment Assistance for Self-Employed Recipients


Assistance is available to self-employed workers, independent contractors, gig and platform workers who are impacted by COVID-19 through Pandemic Unemployment Assistance (PUA) and possibly the Families First Coronavirus Response Act (FFCRA).

Per the New Jersey Department of Labor & Workforce Development office, PUA potentially provides the same amount as regular unemployment (60% of your average weekly salary, up to a maximum of $713 per week) for up to a total of 39 weeks. The PUA amount for the self-employed is calculated using prior year(s) tax returns if wages are not reported through wage records. The New Jersey Department of Labor says that the minimum payment will be $231 a week for 39 weeks. PUA recipients are also eligible for an extra $600 per week. PUA benefits are considered taxable income.

The New Jersey Department of Labor has prepared two downloadable guides to help you understand what benefits are available under the PUA and the FFCRA and how to apply for them. If you are a self-employed worker, independent contractor, gig and platform worker please read them both before applying for Unemployment Insurance benefits.

You can find that guidance here:

HBK will continue to follow developments and provide guidance and clarity surrounding COVID-19 business issues. To discuss COVID-19’s effect on your business, contact your HBK advisor.

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About the Author(s)
Kevin McGinn-, CPA, MST is a Senior Manager in HBK’s Blue Bell, Pennsylvania office and is a member of HBK's Tax Advisory Group. He has extensive experience in tax planning for high-net worth individuals and businesses in many industries such as distribution, manufacturing, service, and non-profit.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.