Realtors® Filing for Unemployment Benefits: What We Know Right Now
In this guide specifically for Realtors, you'll find out if you qualify to receive unemployment, what's going on with Florida's system and how long it could take for you to get financial assistance.
Florida Realtors has heard from hundreds of members asking how to apply for unemployment benefits through the CARES Act, signed into law March 27. A key provision in the law creates a temporary “Pandemic Unemployment Assistance” (PUA) program that extends unemployment benefits to those not traditionally eligible, namely self-employed individuals and independent contractors.
CARES is a federal program that’s administered by states. In Florida, this task falls to the Florida Department of Economic Opportunity (DEO).
As an independent contractor, what are the eligibility requirements for federal unemployment assistance?
Unemployment benefits are available to self-employed and independent contractors who are fully or partially unemployed as a direct result of the COVID-19 public health emergency, beginning Jan. 27, 2020, through Dec. 31, 2020. Individuals who are eligible for PUA compensation are:
NOT eligible for regular compensation benefits or extended benefits under state or federal law; AND
Can self-certify that he or she is able to work, but who is unable to work due to COVID-19 such as: movement restrictions, employment closures, medical diagnoses, and quarantines.
If an individual is eligible to telework with pay or has paid sick leave or expanded family and medical leave, they are ineligible for unemployment assistance. Further, under the law, the U.S. Secretary of Labor is authorized to establish additional eligibility criteria. These benefits will be carried out through agreements between each state and the U.S. Department of Labor (DOL). To date, the DOL has not released any additional criteria for independent contractors.
Why is it taking so long for unemployment benefits to be distributed to independent contractors?
Last year, Florida’s DEO handled 326,653 unemployment applications. Between March 15 and April 5, more than 520,000 Floridians applied for unemployment benefits. Plus, the state must now build an online application system for independent contractors, who aren’t normally entitled to unemployment benefits. And the DEO has yet to receive federal guidelines for implementing CARES unemployment benefits or funds.
Real estate services have been deemed “essential” in Florida. Does this mean I’m ineligible for the new unemployment benefits for self-employed?
Even if real estate-related activities are deemed essential, whether an individual will be eligible for PUA depends upon whether or not that individual is able to work. For this purpose, whether an industry is “essential” is not relevant to the test.
As an independent contractor, how do I apply for unemployment benefits?
To apply for unemployment compensation benefits, start here, at the state of Florida's unemployment website. Or you can apply using the DEO's new mobile-friendly website found here.
Because the application process is now being extended to independent contractors, there may be questions asked that do not apply (i.e. who is your employer). As Florida updates its processes to conform to the federal guidelines, the process is likely to change. Florida Realtors is in regular contact with the DEO on the status of updates. Keep checking back here for updates.
I have read that DEO has started accepting paper applications and that, as an independent contractor, this is how I should be applying for unemployment assistance. Is that true?
Paper applications are meant to be an additional means for people applying for state benefits who have had trouble accessing the electronic system. The paper application is not designed to be used by independent contractors seeking the new federal unemployment assistance.
You can fill out the paper application, but it is highly likely that it will not be accepted or approved by DEO since the process for gaining the federal unemployment benefits is still being worked out by DEO and the U.S. Department of Labor.
If you fill out a paper application, you should make sure you write somewhere on the application that “I am an independent contractor and have been so for (x) months/years.” You should also state that, “I am available for work.” Historical information about last employer, etc. should be answered truthfully. It is likely that DEO will deny your application and subsequently you will need to re-apply for federal benefits. Florida Realtors is advocating that DEO simply publish a different application for pandemic CARES unemployment benefits for independent contractors.
As an independent contractor, can I apply for unemployment compensation benefits and still accept work?
Independent contractors and self-employed individuals can apply for full or partial unemployment compensation benefits for weeks that their work has been impacted due COVID-19. DEO will need to release guidance on how to compute these benefits.
Does showing a buyer, going on a listing appointment, escorting a home inspector constitute working?
Similar to the above question, it is logical to conclude that these types of activities constitute active working.
Where a husband and wife or other partnership team books sales and commissions to their LLC, can one spouse or partner apply for PUA benefits?
The DEO and U.S. Department of Labor are still working out these types of details regarding the PUA program and its implementation in Florida. We will update this answer once those details are finalized.
If I am able to telework but unable to fully close transactions or complete work to receive compensation, am I ineligible for benefits?
The law states that if an individual is eligible to telework with pay, they will not be eligible for unemployment assistance. NAR has requested more guidance from the U.S. Department of Labor on what “telework with pay” entails, as the Secretary of Labor is authorized to establish additional eligibility criteria. There may be an option for “partial unemployment” benefits also depending on eligibility circumstances. It may be useful to keep track of total hours worked to help estimate the percentage of time worked, as states’ requirements for reporting unemployment eligibility vary.
A closing occurred prior to the effective date of the PUA program, but I have not been paid my commission. How does this impact my unemployment eligibility?
Without guidance from the U.S. Department of Labor or the state of Florida, it is unclear how earned income prior to being “out of work” may impact unemployment benefit eligibility. It is recommended to apply for the benefits, including detailed financial information for benefits calculations, which may reduce the total benefits or not pay for that particular week during which the compensation is received.
If a licensee has another job, for example, works for a title company, should they apply for Unemployment Insurance under the W2 job or PUA as 1099? I imagine you cannot apply for both correct?
It is very unlikely that the individual will be able to apply for both unemployment insurance compensation through their job and for PUA because they hold a real estate license.
We do not know enough about this individual’s employment circumstances to fully respond to this question. However, the employee likely will be deemed eligible for unemployment insurance compensation through their position with the title company, so it may be more expedient to file for traditional unemployment.
How much in unemployment benefits can I receive and for how long?
It depends. The CARES Act provides benefits of $600 per week (only through July 31, 2020) in addition to the amount provided under a state’s compensation law through December 31, 2020.
Typically, states base compensation amounts on an individual’s wages from their most recent tax year, and net income from all self-employment that was reported on an individual’s tax return. Individuals can receive up to 39 weeks of PUA benefits through December 31, 2020. Florida’s DEO has not yet provided formulas for calculating benefits for independent contractors. The CARES Act also included a provision encouraging states to waive a customary 7-day waiting period to receive benefits. The DEO waived the one-week requirement through May 8, 2020.
If I do not qualify for full benefits under the PUA, will I be able to apply for partial pay?
This is still being worked out between DEO and the U.S. Department of Labor. We will update you once details are finalized.
I have read that individuals who are receiving partial PUA payments will also be eligible to receive an additional $600 per week benefit through July 31, 2020, through the PUA. Do you also receive the additional $600/week if you receive full PUA payments?
Yes, individuals who are eligible for PUA payments will also receive the additional $600 PUC payment.
What factors are considered when determining unemployment benefit eligibility as a result of COVID-19?
Individual factors that are needed to show unemployment status as a result of COVID-19 include:
Individuals diagnosed with COVID-19 or experiencing symptoms of COVID-19 and seeking a medical diagnosis;
A member of an individual’s household who has been diagnosed with COVID-19;
Individuals providing care for a family member, child, or other person within one’s household diagnosed with COVID-19;
Individuals who are unable to reach his or her place of employment because of self-quarantine, due to COVID-19;
Individuals who were scheduled to begin a work or unable to reach work due to COVID-19;
Individuals who provide major household support, because the head of the household has died as a result of COVID-19;
Individuals who have had to quit his or her job as a direct result of COVID-19;
Individuals whose place of employment is closed as a direct result of COVID-19; or
Individuals who are self-employed, or who would not otherwise qualify for regular unemployment.
The U.S. Secretary of Labor is authorized to establish additional eligibility criteria that could potentially include other factors to prove eligibility, which is also possible by individual state programs. As more details are provided, NAR will provide updates.
May I collect unemployment insurance benefits for time in which I receive pay for paid sick leave and/or expanded FMLA leave?
No. If you are eligible for paid sick leave or expanded family and medical leave (FMLA), you are not eligible for unemployment assistance. However, each State has its own unique set of rules; and DOL recently clarified additional flexibility to the States (UIPL 20-10) to extend partial unemployment benefits to workers whose hours or pay have been reduced. Therefore, individuals should contact their state unemployment office for specific questions about eligibility.
If a broker owner of a real estate office files for DISASTER LOAN ASSISTANCE, the forgivable one via SBA, can the same person (the owner who usually gets a salary) also apply for PUA?
We are awaiting additional regulatory guidance necessary to fully answer this question. We believe that an owner who obtains a PPP loan, may not be eligible to recover unemployment as well. The purposes of both programs are the same – to ensure that individuals are still being paid whether this is by keeping them employed through a PPP loan or providing enhanced unemployment benefits.
As a small business owner, are we limited to what we can apply for as small business assistance? I don't want to apply for one thing and then find something else, only to learn one overrides the other. Is there a way of knowing what is correct to apply for?
Individuals will need to determine which is the best option for themselves and their businesses. Since a self-employed, small business owner may not be able to receive both PUA and PPP, both programs should be assessed based upon that individual’s specific circumstances.
Source: Florida Realtors®
DISCLAIMER: Please note that the COVID-19 pandemic is evolving daily. Make sure to observe the CDC Guidelines as well as the Federal, State, and Local Orders. For legal questions, please contact the Florida Realtors® Legal Hotline.