What the Coronavirus Aid, Relief, and Economic Security Act “CARES Act” means for independent contractors

To alleviate financial hardship during this crisis, Congress recently passed the Coronavirus Aid, Relief, and Economic Security Act or the ”CARES Act” 

The CARES Act will provide direct payments to certain individuals and expand access to unemployment benefits to certain workers, including eligible independent contractors, ‘gig workers,’ and freelancers.

Under the CARES Act, you may qualify for…

Expanded unemployment benefits, including for independent contractors.

• The benefits will vary by state, but the CARES Act allocates money for states to provide unemployment benefits for individuals who are typically not qualified to receive them, including independent contractors.

• At this time HopSkipDrive can’t predict what you will receive. Please refer to your relevant state department for more information, and we will continue to do everything we can to support you navigating the process.

• The receipt of unemployment benefits does not change your independent contractor status.

• Unemployed workers may also receive $600 per week in federal assistance for up to four months.  

You may also qualify for…

Small business loans

• The CARES Act also expands loans to small businesses, which include independent contractors and self-employed individuals who meet the loan eligibility requirements. Information here.

Direct cash payment for individuals under a certain income threshold 

• Cash assistance of up to $1,200 per individual earnings $75,000 or less, and $500 per child under the age of 17. The same standards apply for married couples who file returns under $150,000. The cash benefits begin to phase out above those earning thresholds. Those on Social Security or with no earnings are still eligible for cash assistance.

• Waiver of required minimum distributions and 10% early withdrawal fee for certain retirement accounts.

• Waiver of interest rates on federal student loans and the option to stop paying federal student loans through September 30, 2020.

• Employers and self-employed individuals may be able to defer all or a portion of payroll taxes and self-employment taxes.