COVID-19 Economic Relief Updates

Over the last few weeks, I have received a number of inquiries about economic relief during the COVID-19 outbreak. Unfortunately, many of us are struggling to navigate state and federal resources with information about unemployment insurance (UI), stimulus payments, and other programs intended to ease the burden the novel coronavirus has introduced into our lives.

To that end, I am writing to provide some information about these programs and point you toward helpful resources, some from past e-blasts, and some very important new guidance that I’ve tried to make more readable. If you have ongoing issues with state agencies, please reach out to me.

How to File for Connecticut Unemployment Insurance

If you have become unemployed as a result of the COVID-19 outbreak, you should visit www.filectui.com as soon as possible to begin the application process to receive Unemployment Insurance (UI). Once on the page, be sure to click the blue button to begin your application.

The Connecticut Department of Labor (CTDOL) has created a video detailing the application process. Please click here to be redirected.

Of particular importance, if you have been denied benefits during this pandemic state of emergency, your time may have finally come with the Federal Pandemic Unemployment Assistance (PUA) program! PUA is for covered individuals not eligible for regular unemployment compensation or pandemic emergency unemployment compensation (PEUC), including those who’ve exhausted such benefits. Covered individuals also include self-employed, those seeking part-time employment, individuals lacking sufficient work history, and Peace Corps Volunteers whose service was cut short by COVID-19.

On April 30, 2020, coverage should begin in Connecticut. It’s being administered by CTDOL and I’ve been told that applications are being accepted. The program was actually effective February 2^nd and could run to December 26, 2020. It took until now for our Department of Labor to be able to process claims, although, claims will be paid retroactively.

Also, if you receive the PUA benefit, you will automatically become eligible for the Federal Pandemic Unemployment Compensation (FPUC) program of an additional $600 FPUC weekly benefit.

If you have not already, you MUST file for regular benefits at www.filectui.com before filing for PUA. This is big, please do not delay!

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Unemployment Insurance (UI) Updates from CTDOL

Since early March, the Connecticut Department of Labor (CTDOL) has received an unprecedented amount of unemployment filings. Until very recently, the approval process was aggravatingly slow, but with the introduction of an updated computer system, CTDOL last week announced three major changes to the state’s UI claim processing capacity:

1. CTDOL has upgraded to an online UI system that will significantly quicken the turnaround time for claim processing. According to the governor, the new system will shorten the waiting period for claimants from six weeks to less than one.
2. As of today, April 25, CTDOL is equipped to dispense monies using the Federal Pandemic Unemployment Compensation fund, which adds $600 federal stimulus to all weekly unemployment payments. The additional payments are expected to be included in Connecticut benefit payments beginning Monday, April 27. These payments will be retroactive to March 27, the date the CARES Act was enacted.
3. CTDOL expects to begin accepting claim applications for Pandemic Unemployment Assistance – the federal program that provides benefits for self-employed individuals and independent contractors, as discussed above – by Wednesday, April 30.

Please note that unemployment benefits not yet paid will be retroactive to the date a person filed for benefits.

In addition, CTDOL has created a frequently asked questions document about COVID-19 for workers and employers. This document is updated daily and can direct you to information on UI, paid family medical leave assistance, and federal unemployment programs.

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Federal Economic Impact Payments

Through the CARES Act passed by Congress on March 27, most taxpayers and families are eligible to receive economic impact payments of up to $1200 for individuals and $2400 for couples, plus an additional $500 per dependent under 17. Eligibility and payment amounts are determined based on income reported on 2018 and 2019 tax returns.

Eligible individuals with adjusted gross income up to $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing jointly are eligible for the full $1,200 for individuals and $2,400 married filing jointly. Also, they are eligible for an additional $500 per qualifying child.

For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no children are not eligible and will not receive payments.

The IRS has created two portals for taxpayers to check their eligibility and enter additional information, although, I’ve heard from hundreds of you that have had no luck making any IRS system work satisfactorily.

1. Non-Filers: This portal is for taxpayers who normally would not file tax returns, such as those on social security and veterans’ affairs benefits and those whose adjusted gross income is below the $12,200 threshold.
2. Get My Payment: This portal is for taxpayers who did file a return in 2018 or 2019 to check the status of their stimulus payments. If you normally do not receive tax returns by direct deposit, this portal will give you the option to enter bank account information. Visit the ‘Get My Payment Frequently Asked Questions’ page for more information.

The first round of economic impact payments was transmitted via direct deposit on April 15, and the Internal Revenue Service (IRS) plans to dispense the remainder of funds by paper checks over the coming weeks and months for those who filed paper returns in 2018 and 2019. With that said, the safest and most expeditious way to receive a stimulus payment is to enter direct deposit information on the IRS’ website.

For additional questions, visit the Economic Impact Payment Information Center.