Mixed Earner Unemployment Compensation (MEUC) (expires Sept. 4, 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 an application using the green button 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.
What is the Mixed Earners Unemployment Compensation (MEUC) Program?
Mixed Earners Unemployment Compensation (MEUC) is a new temporary, federal program that provides an extra $100.00 to self-employed individuals who have earned at least $5000.00 in net earnings in the tax year prior to when the applicant filed for regular unemployment benefits.
What is the duration of the MEUC Program?
MEUC is available for the week ending January 2, 2021 through week ending September 4, 2021.
Who is eligible for MEUC?
An individual who is on regular Unemployment Compensation (including Unemployment Compensation for Federal Employees (UCFE), Unemployment Compensation for Ex-Servicemembers (UCX) and Shared Work), Trade Readjustment Allowance (TRA), Disaster Unemployment Assistance (DUA), Pandemic Emergency Unemployment Compensation (PEUC) or Extended Benefits (EB) and has a net income from self-employment of $5000.00 or more during the applicable tax year.
Who is not eligible?
- If you are on Pandemic Unemployment Assistance (PUA), you are not eligible to apply.
- Corporate officers are NOT self-employed and would not be eligible for MEUC
How are self-employment net earnings defined for purposes of MEUC?
Self-employment income for MEUC is netearnings from self-employment by an individual (sole proprietor or partner) from any trade or business. See 26 U.S. Code § 1402 for more information: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim.
Will I be notified that I may be eligible for MEUC?
CTDOL will be sending out an email to potentially eligible individuals. However, only individuals who have earned at least $5000 in self-employment net earnings during the year prior to when they filed for regular unemployment should apply. For example, if you filed for regular unemployment benefits in 2020, the applicable tax year would be 2019. When you file, we will let you know then as well which is the applicable tax year.
How do I apply for MEUC?
The application is not yet deployed. We will update our website with the most up-to-date information, including when we individuals will be able to apply. Additionally, as noted we will also send individual notification to claimants who may be eligible.
After I start my application, how long will I have to upload documents?
You must submit the documentation referenced on the Upload Documentation page within ten (10) calendar days of your initial application for MEUC. Failure to provide the documentation within ten (10) calendar days will result in a denial of MEUC benefits.
What documents will I need to upload?
Document(s) required to substantiate that you have earned $5000.00 or more in the designated tax year:
- If available, you must submit a copy of your federal income tax return as filed with the IRS for the tax year requested. Please include all forms and schedules submitted. Submitting documentation in this format will expedite the processing of your MEUC application; OR
- If your federal income tax return for the required tax year has not yet been filed or is not available, you are strongly encouraged to complete and provide a copy of your federal income tax return supporting your net self-employment income and employment income calculations, even if the return has not yet been filed with the IRS; OR
- If copies of federal tax returns cannot be submitted, applicants should submit a statement showing the calculation of net self-employment income in a format substantially similar to the federal income tax return. This statement along with supporting source documents should clearly identify the source and amounts of all items of income, gain, loss and expenses. Acceptable supporting documents include but are not limited to: receipts journals, disbursement journals, bank statements, form(s) 1099, form(s) K-1, billing invoices, purchase invoices, contracts, paycheck stubs, business records, ledgers, and any other documents that clearly identify both the total income and total expenses of the operations.
What if I am not able to upload documents?
If you are unable to upload documentation due to extenuating circumstances, email CTDOL at DOL.MEUC@ct.gov. You will receive instructions as to documentation to send in, including a certification form which must accompany the documents. These documents are a critical component of the eligibility process and must be filed with the certification form. Applications cannot be processed without both the supporting documents and the certification. Please be advised that emailing the documentation and certification may result in a delay in your payment.
If I am denied MEUC, will that affect my underlying benefits?
No. A denial of MEUC benefits will not impact your regular weekly benefit amount.
Are MEUC payments considered income which should be reported on my tax returns?
Yes. MEUC payments are taxable.
Will MEUC payments be considered income for purposes of CHIPs and Medicaid?
Yes, at this time, MEUC payments are considered income for purposes of CHIPs and Medicaid and could impact eligibility for those programs.
Can I file for MEUC in the initial application for regular unemployment benefits?
No, like individuals currently receiving unemployment in one of the approved programs, all individuals must separately apply for MEUC benefits behind the “green” button at www.filectui.com.
How will I receive MEUC benefits?
You will receive the benefit in the same way you receive your regular unemployment benefit.
Will I get MEUC for weeks in the past?
The first week payable is week ending January 2, 2021. You will need to apply and submit documentation before we can determine eligibility. If it is found you are eligible, benefits due will be retroactively provided as appropriate.
Is the MEUC amount based on what my weekly benefit rate is, or does everyone get the full $100 MEUC amount each week?
As long as you are due at least $1 in underlying UI benefits for the week, and are determined to be eligible for MEUC, you will be paid the full $100 of MEUC on top of the other unemployment benefits you are due.
As an employer, will I be charged for the additional $100 per week?
No. These additional $100 payments are 100% federally funded and will not be charged back to employers.
Can I use two tax years to establish the net $5000 in self-employment?
No. The federal law specifically states the tax year prior to the individual's initial claim must be used.
Will I have the right to appeal a denial of MEUC?
Yes. Similar to all the unemployment programs, you will be able to follow the state law and appeal a denial of MEUC.