September 19, 2022

Connecticut Essential Worker Premium Pay Program: Application Deadline Approaching

By Michael D'Addio, Principal, Tax & Business Services

Connecticut Essential Worker Premium Pay Program: Application Deadline Approaching State & Local Tax

The application deadline for the Connecticut Essential Worker Premium Pay Program is October 1, 2022.  This program was enacted as part of the budget bill passed earlier this year, in order to provide payments to essential workers forced to work on-site during the pandemic.

An essential worker is eligible for the payment if he/she/they:

  1. Was/were employed as an essential worker in Connecticut between March 10, 2020, and May 7, 2022, in category 1(a) or 1(b) under the Centers for Disease Control (CDC) and Prevention Advisory Committee on Immunization COVID-19 vaccination practices recommended as of February 20, 2021;
  2. Was/were not able to work from home;
  3. Was/were employed in the private sector (i.e., not employed by a federal, state or municipal agency;) and
  4. Earned less than $150,000.

The list of eligible category 1(a) and 1(b) workers can be found at the CDC website: https://www.cdc.gov

It is important for each worker to review these categories as they include a broad  group of eligible categories.   Authorized payments range from $200 to $1,000 depending on employment status as full-time or part-time. The maximum scheduled benefit for an eligible full-time employee of $1,000 is reduced to $500 for a part-time employee.  Payments are expected to be made in 2023.

The amount of the benefit is also a function of an individual’s earnings, per the following schedule (for full-time workers):

Earnings
Payment
Less than $100,000
$1,000
$100,000 to $109,999
$800
$110,000 to $119,999
$600
$120,000 to $129,999
$400
$130,000 to $149,999
$200

$30 million has been appropriated to fund up to 30,000 claims of $1000 each under the program. The law provides that in the event total applications exceed the allocated amount, individual payments will be reduced pro rata unless the state appropriates additional funds.

Additional guidance and the application can be found on the program’s website: www.ctessentialworkerrelief.org

For questions about this benefit, do not hesitate to reach out to your Marcum tax professional for additional guidance.

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