Self-employed Pennsylvanians report confusion, glitches when applying for financial assistance

More than 78,000 self-employed Pennsylvanians have applied for Pandemic Unemployment Assistance since the state introduced the program last week — but several who were interviewed say the process has been marred by confusion and technical glitches.

“You’re just kind of in the dark, and just hoping that something comes through,” said Robert Gray, a self-employed executive recruiter in Mt. Lebanon.

Everything about the process has been confusing, Gray said. Not sure how the new system would work, he originally tried applying for regular unemployment benefits, but quickly discovered he was ineligible.

Self-employed people, independent contractors and gig workers can’t receive normal unemployment benefits. The state Department of Labor and Industry created the Pandemic Unemployment Assistance program as a way to extend those benefits to the self-employed during coronavirus-driven business shutdowns.

Gray applied when the program launched last week. Based on his income, he thought he would be eligible for the maximum benefit — $572 a week. Instead, he was told he would receive $195, the minimum benefit.

“I can’t live on that,” he said.

He’s tried calling and emailing the Department of Labor and Industry, to no avail.

The department acknowledged early problems with the system, but spokesperson Jahmai Sharp said they are working quickly to fix the glitches.

“We built this new PUA system in two weeks and launched it as quickly as possible over the weekend so people could begin to apply,” Sharp said via email. “(Labor and Industry) has made, and will continue to make, system improvements to address problems that people have experienced as they apply.”

April Frahlich owns The Cleaning Mom in Washington County. Her story is very similar to Gray’s — she originally tried applying for regular unemployment, applied for PUA soon after it launched, and was informed her benefits would be much lower than expected.

“Once I went through the whole process, they said I’d get $195 a week, and I thought this almost isn’t worth it,” she said.

Attempts to get more information have been met with contradictory messages and system glitches.

“It makes you so confused, you don’t know what to do,” she said.

The $195 benefit awarded to Gray, Frahlich and other Pennsylvanians isn’t accurate, according to the department. The PUA system is unfinished, and benefit payouts will be re-evaluated when it fully launches.

Applicants can fill out an initial application, but will not receive benefits until the system is finished. The Department of Labor and Industry has not set a date for its completion. Payments will be backdated to the first week an individual was unable to work because of coronavirus.

One early glitch saw self-employed people who received a W-2 tax form last year being denied PUA benefits and told to apply for traditional unemployment instead. This glitch has been fixed, according to the department.