Pandemic Unemployment Assistance (PUA) For REALTORS®

April 7, 2020 Lara Locke

Independent contractors and self-employed individuals must wait until this Friday, April 10 to apply. Due to the high volume of applications, REALTORS® who intend to apply should do so as soon as possible.

Another key aspect of the CARES Act is the Pandemic Unemployment Assistance (PUA) program, which expands unemployment benefits eligibility to business owners, self-employed workers and independent contractors, including most REALTORS®. These loans will be distributed to Californians through the California Employment Development Department (EDD), which is still working on implementation procedures. As this is a new program, the EDD is still setting up its systems to process applications from independent contractors and is also waiting for additional federal guidance on the program. Consequently, C.A.R. strongly recommends that members do NOT submit PUA claims now and instead wait for further assistance. For more information, see the Pandemic Unemployment Assistance page on C.A.R.’s coronavirus website.

https://www.carcovidupdates.org/pandemic-unemployment-assistance

Is PUA available to REALTORS®?

Yes, REALTORS® acting as salespersons may be eligible if they meet the criteria.

The salesperson is licensed by the state but must work for a broker.

What are some of the criteria an agent needs to meet to qualify for PUA?

Agent isn’t traditionally eligible for unemployment compensation because he/she is an independent contractor or is self-employed.
Agent has exhausted any other unemployment benefits, if applicable.
Agent isn’t receiving paid sick leave or other paid leave benefits.
Agent doesn’t have the ability to work remotely with pay.
Agent is unable to work because of COVID-19.

What does it mean to be unable to work because of COVID-19?

Here are some circumstances that constitute inability to work due to COVID-19:

You can’t reach your place of work because of a quarantine imposed as a direct result of the COVID-19 public health emergency.

You or a household member have been diagnosed with COVID-19.
You’re providing care for a family member who has been diagnosed with COVID–19.
You’ve been advised by a health care provider to self-quarantine.
You had to quit your job as a direct result of COVID–19.
Your place of employment is closed as a direct result of the COVID–19 public health emergency.
You have a child who’s unable to attend school that’s closed as a direct result of COVID-19.
You have become the head of household or breadwinner.
The Secretary of Labor has discretion to establish additional criteria, meaning, these listed reasons may be further limited or possibly expanded.

How are the criteria checked?

The PUA requires you to self-certify.

How do I file a claim?

Clear guidance has yet to be released. It appears the administration of PUA funds will be administered through the existing state agencies as soon as the federal government unlocks the funds. In California, claim filing and administration of PUA funds will probably be through the California EDD. C.A.R. will provide step-by-step guidance on how to apply for PUA funds as soon as the application process is announced.

Will there be a waiting period to apply?

No. California will waive the one-week waiting period, but it isn’t clear as to how long it’ll take for payments to be approved and processed.

Should I submit my PUA claim now?

You can create an EDD online login account, but don’t submit your claim yet. We advise you to wait for additional guidance before submitting your claim for PUI benefits because the California EDD is working on implementation procedures, and submitting a claim now may result in significant delays in receiving benefits. EDD has indicated that it’s currently working with the California Department of Technology/Office of Digital Innovation to develop the application needed for this new program to serve unemployed Californians who don’t usually qualify for regular unemployment benefits, including the self-employed. EDD is urging applicants to watch for updates on EDD’s website that will include instructions for workers who may have already applied for benefits and were not found eligible for the regular state-administered unemployment insurance program. We continue to monitor EDD activity and we will provide you with guidance as soon as we get more information.

Even though you should wait to submit your EDD application, the good news is, you may still register and create an online login account through the EDD website to initiate the process. For guidance on how to get started with this, see EDD instructions at:

https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

https://www.edd.ca.gov/pdf_pub_ctr/de2338h.pdf

The CARES Act also calls for payments to be mailed to individual taxpayers. The IRS plans to start mailing these checks to millions of Americans as soon as this coming Friday, but experts warn there could be significant delays. For more information, see the IRS’s FAQ on the economic impact payments. https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

Other Assistance for Agents

If I get sick with COVID-19, is paid sick leave available to me?

Yes, in the form of tax credits. Under the newly enacted federal Families First Coronavirus Response Act (FFCRA), agents who must self-isolate or are diagnosed with COVID-19 are now able to claim a tax credit for two weeks of sick leave. The tax credit is refundable and creditable against income and self-employment taxes. The IRS has not provided any guidance yet, but we believe the tax credit will be applied to the agent’s 2020 tax return, filed in 2021. Once the process is clear C.A.R. will provide step-by-step instructions on how agents can access this relief.

What if I need to care for an ill family member or a child whose school or daycare has closed?

The two weeks of tax-creditable sick leave provided under the FFCRA, discussed above, can be used for these purposes.

Are disability benefits available to me if I get sick or need to care for a sick family member?

It depends. If you have enrolled in California’s optional Disability Insurance Elective Coverage (DIEC) program for self-employed individuals and independent contractors, you may be eligible to receive disability or paid family leave benefits if you are unable to work due to being sick or if you are caring for a sick family member. More information about the DIEC program can be found here: https://www.edd.ca.gov/disability/Self-Employed.htm. If you have not enrolled in the DIEC, however, as an independent contractor you are not eligible for disability benefits.

Are unemployment benefits available to me if I get sick and am unable to work?

Yes. As discussed above, the new Pandemic Unemployment Assistance program (PUA) expands unemployment benefits to workers, including independent contractors, who are unemployed or partially unemployed as a result of the coronavirus pandemic. See here for details. Additionally, if you were previously an employee instead of an independent contractor, or have a side job where you are an employee, you may be eligible for unemployment benefits from the State of California if your employer paid taxes for such benefits. You should file an unemployment claim with the California EDD here, and they will determine your eligibility.