The self-employed person has the right to request a benefit when an incapacity appears that typically prevents him from developing his work activity. Depending on the degree of it can become permanent.
Know the differences between the different types of disability of the self-employed and how much you will charge for each of them.
What is a work disability?
Work incapacity appears when the worker cannot perform the functions entrusted to him in his position. There are two possible types of disability according to the degree and scope of it:
- Temporary Disability (IT) – when the disability is quick, the worker is prevented only for a certain period, returning typically to his job after the recovery period.
- Permanent Disability (IP) – after finishing the treatment and receiving the medical discharge, the worker maintains severe functional or anatomical reductions that diminish or disable their work capacity.
Temporary disability (IT)
As a self-employed person, you can access a contributory benefit derived from temporary disability (IT) designed precisely to cover the loss of income during the period in which you are sick due to illness.
A disease that may be common, not overcoming an accident or occupational illness, or arising from an accident at work or occupational disease.
The usual thing is that as a self-employed you have covered both the common contingencies (that surround you in case of illness or common accident) and the professional contingencies (that cover you in case of sickness or experienced accident) since, from January 1, 2019, except for certain exceptions (self-employed agricultural workers, for example) you are obliged to include them in your monthly payment.
You must have chosen a mutual collaborator with Social Security that will be the one that exercises the necessary protective action.
Typically, the mutual is chosen when you register as self-employed. Still, if you have not done so at that time, you must formalize the application before October 1 (each year) so that its effects take effect from January 1 of next year.
Requirements for temporary disability
To be a beneficiary of the temporary disability benefit, you must meet specific requirements:
Presentation of the medical report justifies the “sick leave” during the 15 days following the same start. And every six months, if the recovery lengthens, you will have to pass a new part if you were required to do so.
Request the collection of IT through an official document, which You can obtain on the social security website.
Justify that you are affiliated and registered (and up to date with the payment of your fees) and have covered a 180-day contribution period.
Fill out a form, which is also available on the Social Security website, in which you must specify in what situation your activity remains. At the same time, you are “low”: if you have looked for a substitute, stop temporarily or do it definitively.
Disability benefits for self-employed
Many self-employed people often need to schedule SE when it’s time to pay taxes. It allows us to be eligible for the benefits that come with social security. In this way, you will need to pay the self-employment tax rate of 15.3%. It must consist of Medicaid taxes and Social Security. Around 12.4% of tax will go to social security and the remainder to Medicaid. For further information regarding self-employment tax, you can visit the International Revenue System (IRS) website.
How to qualify for social security
You can qualify for social security benefits such as SSD, retirement, and survivor benefits by having sufficient work credits. If you want to earn the number of credits to qualify for SSD, you must know your age and when you become disabled. You can receive full benefits if you make 40 credits in a decade and meet the work credit need.
You need $1,260 for one work credit that you will have within a year to pay Social Security Taxes. Also, you can earn maximum credit in a year that is around four. There is no fixed duration limit for making money. Self-employed persons and those who report a net profit of at least $5,040 income for a year can earn four work credits. It is the maximum rate that anyone can make.
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