In Connecticut, the COVID-19 pandemic has greatly increased the financial vulnerability of independent contractors. Many people are now unsure if they qualify for unemployment benefits as a result of this. The short answer is that yes, under the Pandemic Unemployment Assistance (PUA) program, self-employed people in Connecticut are eligible to receive unemployment benefits.
PUA is a federal program designed to help people who aren’t qualified for standard unemployment insurance. It was established as part of the CARES Act. This covers freelancers, independent contractors, and self-employed people. As one of the states that choose to take part in the PUA program, Connecticut now allows its self-employed residents to apply for and receive unemployment benefits.
It is crucial to remember that not all independent contractors will qualify for PUA. You must have experienced some sort of COVID-19-related impact to be eligible. This can entail having to close your business owing to government orders, being forced to care for a sick family member, or being unable to work due to illness or quarantine.
Additionally, Connecticut has expanded its PUA program. The program has been extended as of March 2021 to September 4, 2021. This implies that those who are still impacted by the epidemic and who are self-employed can continue to collect unemployment compensation through the PUA program.
Moving on to the following query, any company that transacts business in Connecticut must have a seller’s permit. In Connecticut, a seller’s permit costs $100. Whether or not you generate any sales, you must pay this non-refundable fee.
In Connecticut, you must register with the Department of Revenue Services (DRS) in order to get a seller’s permit. This can be done by mail or online on the DRS website. You must submit information about your company, including your name, address, and federal tax ID number, along with information about the kind of business you operate.
And finally, a lot of individuals conflate employer identification numbers (EINs) with tax ID numbers. They are not the same thing, despite their similarities. Various sorts of identification numbers used for taxes can all be referred to by the general term “tax ID number.” In contrast, an EIN is a particular kind of tax ID number that businesses use to identify themselves for tax purposes. Therefore, even though an EIN is a particular kind of tax ID number, not all tax ID numbers are EINs.
In conclusion, self-employed people in Connecticut who were impacted by COVID-19 may be eligible for unemployment benefits under the PUA program. The state has extended the PUA program until September 4, 2021. You must pay the DRS $100 to receive a seller’s permit before you can sell products or services in Connecticut. Furthermore, despite similarities, tax ID numbers and EINs are not the same thing.