How to apply for mixed earner unemployment compensation

What is the Mixed Earners Unemployment Compensation (MEUC) Program?

Mixed Earners Unemployment Compensation (MEUC) is a temporary, federal program created by the Continued Assistance for Unemployed Workers (Continued Assistance) Act of 2020 that provides a $100 per week supplemental benefit amount to certain self-employed individuals who have earned at least $5,000 in net earnings in the most recent taxable year ending prior to the individual’s application for regular unemployment compensation (UC) 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?

MEUC is only payable to certain individuals who:

1. received at least $5,000 of self-employment income in the most recent taxable year ending prior to the individual’s application for regular UC; and
2. are eligible to receive at least one dollar ($1) of underlying unemployment benefits for the claimed week.
3. Submit documentation substantiating self-employment income.

The application process will not move forward until the supporting documentation is provided. Failure to submit a completed application with the required supporting documentation will result in a denial of MEUC benefits. MEUC is NOT available for weeks claimants received Pandemic Unemployment Assistance (PUA).

What underlying unemployment benefits can I receive to be eligible for MEUC?

MEUC applies to certain individuals who are eligible to receive regular UC (including Unemployment Compensation for Federal Employees (UCFE), Unemployment Compensation for Ex-Service members (UCX) and Shared Work), Trade Readjustment Allowance (TRA), Disaster Unemployment Assistance (DUA), Pandemic Emergency Unemployment Compensation (PEUC) or Extended Benefits (EB). MEUC is NOT available for weeks claimants received Pandemic Unemployment Assistance (PUA).

What is the most recent taxable year ending prior to my application for regular UC?

This date is based on the individual’s application for regular UC. If an individual filed an initial claim for regular UC during calendar year 2020, the most recent taxable year is 2019. Thus, such individuals must have received at least $5,000 in self-employment income during taxable year 2019 to be eligible for MEUC. If an individual filed an initial claim for regular UC during calendar 2021, the most recent taxable year is 2020 and such individuals must have received at least $5,000 in self-employment income during taxable year 2020 to be eligible for MEUC.

What is self-employment income for purposes of MEUC?

The Continued Assistance Act defines self-employment income by reference to Section 1402 of the Internal Revenue Code (IRC) of 1986, which generally provides that “self-employment income” is the net earnings from self-employment obtained during a taxable year.

How are net earnings from self-employment income determined for purposes of MEUC?

For the definition of net earnings from self-employment, Section 1402 of the IRC generally provides that this includes the gross income derived by an individual from any trade or business carried on by such individual, less allowable deductions which are attributable to such trade or business, plus his or her distributive share (whether or not distributed) of income or loss from any trade or business carried on by a partnership of which he or she is a member.

Will I be notified that I may be eligible for MEUC?

KDOL will be sending out a notification by email to individuals who may be eligible for MEUC.

How do I apply for MEUC?

To apply for MEUC, call the Unemployment Contact Center.

• Kansas City: (913) 596-3500
• Topeka: (785) 575-1460
• Wichita: (316) 383-9947
• Toll-Free: (800) 292-6333

What documents am I required to upload to substantiate that I received at least $5,000 of self-employment income?

Individuals who apply for the MEUC program must provide document(s) to substantiate that they have received at least $5,000 in self-employment income during the most recent taxable year ending prior to the individual’s application for regular UC.

1. If available, you must submit a copy of your federal income tax return for the most recent taxable year ending prior to your application for regular UC. Please include all forms and schedules submitted. Submitting documentation in this format will expedite the processing of your MEUC application; OR
2. If your federal income tax return for the required tax year has not yet been filed or is not available, you may provide a copy of your unfiled, completed federal income tax return supporting your net self-employment income and employment income calculations; OR
3. If your tax return is not available (for example, because you have not filed your income tax return yet), acceptable documentation of self-employment income includes, but is not limited to:
   • 1099
   • Paycheck stubs,
   • Bank receipts,
   • Business records,
   • Self-employment ledger
   • Form 1040 SE with Schedule C, F, or SE
   • Form 1065 Schedule K1 with Schedule E
   • Bookkeeping records, including receipts for all allowable expense
   • Contracts,
   • Invoices
   • Billing statements

Acceptable documentation does not include W-2 wages earned with an employer. The proof of income must be related to self-employment.

If the individual’s application for regular UC was in 2020, use tax year 2019. If the individual’s application for regular UC was in 2021, use tax year 2020.

What if I'm not able to upload documents?

If you are unable to upload documentation due to extenuating circumstances, you can fax (785) 368-7117 or mail the documents to KDOL at the following address:

Kansas Department of Labor
Attn: MEUC
401 Topeka Blvd
Topeka, KS 66603

Please be advised that faxing or mailing the documentation separately 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 an individual’s regular weekly benefit amount for the underlying unemployment benefit they are currently receiving.

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 Medicaid and the Children's Health Insurance Program (CHIP)?

Yes. MEUC payments will not be disregarded for purposes of determining income for Medicaid and CHIP. Therefore, MEUC payments may affect an individual’s eligibility for these programs.

Can I file for MEUC in the initial application for regular unemployment benefits?

No. All individuals must separately apply for MEUC benefits by submitting the application and all supporting documentation to KDOL. 

How and when will I receive MEUC benefits

Individuals determined eligible will receive MEUC benefits in the same way they receive their underlying unemployment benefit.

Claimants can expect to receive payments 30 – 60 days after their application has been determined eligible. Failure to submit a completed application with the required supporting documentation will result in a denial of MEUC benefits. MEUC benefits will not be paid until a claimant uploads the required documentation and the Kansas Department of Labor (KDOL) determines that the amount of self-employment income meets MEUC eligibility requirements.

Will I get MEUC for weeks in the past?

The first week MEUC is payable is the week ending January 2, 2021. All individuals must apply for the MEUC program and submit supporting documentation before KDOL can determine that an individual is eligible for MEUC for any weeks in which the program is in effect. If an individual is determined eligible, MEUC 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?

If KDOL determines an individual is eligible, and they are eligible to receive at least $1 of an underlying unemployment benefit for the claimed week, then they are potentially eligible for the full $100 on top of their underlying unemployment benefit.

However, you may not receive the full $100 amount if you have child support obligations or KDOL is offsetting your MEUC benefits to recover a previous unemployment insurance benefit overpayment. Individuals may also elect to have federal and state tax withholdings deducted from their MEUC payments separately from the withholding for the underlying benefit payments.

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 $5,000 in self-employment?

No. The Continued Assistance Act specifically states that the $5,000 of self-employment income must be in the tax year ending prior to the individual's application for regular UC.

Will I have the right to appeal a denial of MEUC?

Yes. After reviewing all information, KDOL will issue individuals who apply for the MEUC program a notice of determination which will notify them of whether they have been found eligible or ineligible to receive MEUC. If they disagree with the determination, they may file an appeal. The notice of determination will provide more information on appeal rights and how to file an appeal.