COVID-19: Changes in Unemployment Benefits During the Pandemic

Normally, to get unemployment benefits, you must be able, available, and actively looking for work. Usually being able, available, and actively looking for working means:

• Able: You are mentally and physically ready to work.
   
• Available: You don’t have things going on in your life that would affect your ability to work, like going to school or caring for an ill family member.
   
• Actively seeking: You must look for work while you are getting UI. Only work search that does not put your health or your family’s health at risk is required.
   

Normally, you can’t get unemployment if you are self-employed or an independent contractor. BUT, a new law lets people who are self-employed or independent contractors get unemployment.

You can apply for unemployment online, Sunday through Friday, 6:00 AM to 8:00 PM, at www.iumn.org.

If you want to apply over the phone, the only time you can call is on Fridays, 8:00am – 4:30pm.

Call: 
Twin Cities area: 651-296-3644
Greater Minnesota: 1-877-898-9090
TTY - users: 1-866-814-1252

There is also a schedule if you need to talk to customer service on the phone. Use this link to see when to call for different kinds of questions: https://www.uimn.org/applicants/contact-us/index.jsp.

You can get unemployment if:

• You are an employee. Employees get a W-2 tax form. Employees could get unemployment before the new laws and still can.
• You are self-employed. For example, if you own your own business. Most self-employed people can get unemployment March 13, 2021.
• You are an independent contractor. Independent contractors get a 1099 tax form. For example, if you are a freelance writer or a barber or hairdresser who rents a chair and gets a 1099 tax form. Most independent contractors can get unemployment until March 13, 2021.
   

You can get unemployment even if you were working part-time.

Self-employed people and independent contractors are eligible for unemployment under the Pandemic Unemployment Assistance (PUA) program. You can only get PUA payments if you are not eligible for regular unemployment.

The state has to verify your employment and your income before they can send you unemployment payments. They will send you a letter in the mail if you are eligible.

Usually you get about half of the wages you were making before you lost your job.

There is a new COVID-19 law that lets people get some extra money every week along with their regular unemployment benefits. Most people getting unemployment get an extra $300 per week. 

If you are an employee (you get a W-2 tax form):

• You can see an estimate of your regular unemployment benefits using the MN Unemployment Insurance Benefits Estimator. 

If you are self-employed or an independent contractor (you get a 1099 tax form):

• They calculate your base amount from your net income on your last tax return. If you made $24,340 or less on your last tax return, you get $234 per week.

Yes. Unemployment payments count as taxable income for both federal and state income taxes.

For regular unemployment payments, you can have taxes “withheld” from your payments. If you do this your payments are lower, but you are less likely to have to pay taxes on your unemployment when you file your taxes.

If you were self-employed or an independent contractor, you get unemployment through the Pandemic Unemployment Assistance (PUA) program. PUA payments are taxable, but you can’t have taxes withheld.

Many people got an extra $600 per week, and later an extra $300 per week. That extra money is taxable.

In early 2021, the unemployment office will send a tax form (IRS Form 1099-G) to your last known address. The form says how much unemployment you got in 2020 and how much was withheld in taxes. You use these numbers when you file your taxes next year.

How long you can get unemployment depends on what type of job you had and a couple other things.

If you were self-employed or an independent contractor:

• you get an extra 11 weeks, starting the week of December 27, 2020, if you exhausted your unemployment account.

• Most people don’t need to do anything to get the extra 11 weeks. Just continue to ask for your weekly benefits like normal.

• If you haven’t gotten unemployment in a while, you may need to reactivate your account.
   

If you were a W-2 employee:

• you get an extra 13 weeks if you exhausted your unemployment account OR you were scheduled to get your last check the week of December 20, 2020.

• Most people don’t need to do anything to get the extra 13 weeks. Just continue to ask for your weekly benefits like normal.
   

Even if you were a W-2 employee there are some exceptions to the extra 13 weeks. You cannot get the extra time if:

• you got unemployment because you had a job offer that was withdrawn or rescinded because of COVID

              OR

• you were staying home because of COVID-19. For example, if you are in a high-risk group and had a medical statement saying you shouldn’t work, you were under a quarantine order, or you were caring for a family member who had COVID

              OR

• you had an overpayment due to misrepresentation

              OR

• you were a religious worker who got unemployment because of the CARES Act

Your employer has to have a safety plan to keep you and the public safe. If it’s not safe for you to go back to work because your employer doesn’t have a safety plan or isn’t following it, you might be able to keep getting unemployment. Read our fact sheet Work Safety and Going Back to Work.

If it’s not safe to go back to work because you are at high-risk for COVID-19 or someone you live with is at high risk, you can ask for a “reasonable accommodation.” A reasonable accommodation is something that lets you do your job with some extra help or changes. If your employer won’t give you a reasonable accommodation you might be able to keep getting unemployment. Read our fact sheet Reasonable Accommodations at Work. 

• Stay in touch with your employer about when you can start work again. This takes the place of the ‘looking for work’ requirement.

• Write down when you contact your employer, what they said to you, and what information they gave you.

You don’t need to look for work. Staying in touch with your employer about when your hours go back to normal should be enough.

The regular rules didn’t change. See our fact sheet Unemployment Benefits. You don't have to do any work search that puts your health or your family's health at risk.

• The regular rules have not changed. You need to look for other childcare and ask your employer for a reasonable accommodation or a change in hours before quitting. See our fact sheets Unemployment Benefits and COVID-19: Reasonable Accommodations at Work.

• Look for jobs that let you work from home or work when someone else can care for your children.

• If there are no jobs you can do at this time, apply anyway. If you are denied or need further advice, please contact Legal Aid.

• The regular rules have not changed. You need to ask your employer for a reasonable accommodation or a change in hours before quitting. See our fact sheet Unemployment Benefits.

• You should look for jobs that let you work from home or work when someone else can care for your family member.

• If there are no jobs you can do at this time, apply anyway.  If you are denied or need further advice, please contact Legal Aid.

The regular rules have not changed. See our fact sheet Unemployment Benefits.

• If your doctor or medical professional recommended that you stay home because you are sick or in a high-risk group, you should be able to get unemployment benefits. Make sure you get a doctor’s note.

• You do not have to look for work.

There may be more changes to unemployment benefits as we learn more about COVID-19 and how it affects Minnesota. Please visit the Minnesota Department of Employment and Economic Development’s website for updates on unemployment benefits and COVID-19 https://www.uimn.org/applicants/needtoknow/news-updates/covid-19.jsp.

You CANNOT get unemployment benefits if you do not have permission to work in the United States. Only the wages you earned when you had permission to work count.

If you do have permission to work, you CAN get unemployment benefits. You have permission to work if you are a permanent resident, have a work visa, or have a work permit.

Unemployment benefits do not count for the public charge rule.