American Rescue Plan & Federal Programs
Unemployment Program Information
Benefit Year End, American Rescue Plan & CARES Act II
The American Rescue Plan, signed into law in March, extends provisions of the federal CARES Act II legislation. These extensions benefit the long-term unemployed and the business community as well as impact 2020 tax filing. The American Rescue Plan Act, also known as ARP or ARPA, is currently in effect for all filers with an approved unemployment claim.
NOTES FOR FILERS AT BENEFIT YEAR END:
- Each unemployment claim is effective for 52 weeks. After that time, claimants must re-apply for benefits using the blue button on www.FileCTUI.com.
- When you are at the end of your benefit year, you will be notified to re-submit your unemployment claim using the blue button on www.FileCTUI.com.
- You are not able to file weekly certification on your claim until it has been processed.
- You must have a valid underlying claim in order to be eligible for the extensions under the American Rescue Plan.
- You became unemployed and filed for benefits on March 20, 2020.
- Prior to March 20, 2021, you will be notified that your benefit year is coming to an end and you must re-apply for benefits.
- You submit your new claim using the blue button on www.FileCTUI.com and wait for the agency to notify you that your claim has been processed (between 1-7 days).
- Once your claim is processed, you may begin filing your weekly certification.
- The provisions of the American Rescue Plan are automatically in effect.
Mixed Earner Unemployment Compensation (MEUC) – Applications accepted beginning Tuesday, April 20, 2021
**Note: Claimants should only apply if they meet the requirement of a minimum of $5,000 in self-employment net earnings
The Mixed Earner Unemployment Compensation program was established in CARES Act II for residents who have both self-employment earnings as well as W2 earnings. Eligibility requires claimants to have at least $5,000 in self-employment net income and receive state unemployment benefits; extended benefits; or Pandemic Extended Unemployment Compensation (PEUC). The law excludes Pandemic Unemployment Assistance filers and filers with less than $5,000 in self-employment net income.
About the MEUC program:
- Filers with eligible underlying claims will receive an additional $100 per week until the program expires on September 4, 2021. Payments are retroactive to the week ending January 2, 2021 if filers are eligible.
- Eligibility requirements include at least $5,000 in self-employment net earnings in the most recent completed taxable year.
- Claimants should only apply for the program if they meet the $5,000 net earning threshold.
- The program is 100% federally funded; employers are not liable for MEUC payments.
- Mixed Earner Unemployment Compensation is income and could impact Medicaid and CHIP eligibility.
Claimants may begin applying for the Mixed Earner program on April 20, 2021 when the application launches online. The law requires extensive documentation; CTDOL is urging potential MEUC claimants to read the instructions carefully and prepare documents in advance of starting an application. CTDOL is working with the Connecticut Department of Revenue Services on claimant documentation and income verification.
CTDOL has begun notifying claimants who may be eligible to apply.
Federal Pandemic Unemployment Compensation (FPUC)
FPUC provides an additional $300 per week benefit for all claimants regardless of which unemployment program they use.
- The FPUC program is in effect in Connecticut until the week ending September 4, 2021
- Claimants do not need to apply for the program. Supplements are automatically attached to regular benefits.
Pandemic Unemployment Assistance (PUA)
- PUA is extended from 50 weeks for a total of 79 weeks.
- Program eligibility is effective March 14, 2021 and ends the week ending September 4, 2021.
Other Provisions of the American Rescue Plan
- Trust Fund interest waiver extension until September 6, 2021. This reduces the financial liability for Connecticut companies that pay a special assessment to repay interest on Trust Fund borrowing.
- Extends the 50% reimbursement provision for local and state government and nonprofit organizations until week ending September 4, 2021.
- Increases the reimbursement rate from 50% to 75% for unemployment compensation paid after March 31, 2021 and ending on or before week ending September 4, 2021.
- Extends the 100% federal funding for Shared Work. Shared Work helps employers avoid layoffs by allowing them to use unemployment benefits to cover a reduction in hours.
**NEW** TAX EXCLUSION
- The American Rescue Plan creates a tax exclusion for the first $10,200 in unemployment benefits for the 2020 tax year for all households with an annual income below $150,000.
- Unemployment benefits above $10,200 are taxable income.
- The IRS has issued guidance for taxpayers.
Please visit our press releases page for information related to unemployment programs.