{"id":959,"date":"2023-07-10T12:17:59","date_gmt":"2023-07-10T12:17:59","guid":{"rendered":"https:\/\/dunncorp.com\/blog\/?p=959"},"modified":"2025-02-20T17:29:19","modified_gmt":"2025-02-20T17:29:19","slug":"updates-to-connecticut-unemployment-program","status":"publish","type":"post","link":"https:\/\/dunncorp.com\/blog\/updates-to-connecticut-unemployment-program\/","title":{"rendered":"Updates to Connecticut Unemployment Program"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<p><\/p>\n\n\n\n<p>In an effort to improve Connecticut\u2019s Unemployment Insurance\n(UI) Trust Fund solvency following the COVID-19 pandemic, the legislature\npassed Public Acts 21-200 and 22-67, to implement reforms that were achieved\nthrough a collaborative effort of business and labor. Changes to the tax and\nbenefit system, plus the inclusion of indexing various tax and benefits\nmeasures, will promote long term UI Trust Fund solvency; reduce employer costs;\nbuild in cost predictability to support employer fiscal planning; and stabilize\nUI benefit payments to unemployed workers.<\/p>\n\n\n\n<p><strong>The following UI Tax changes are effective January 1,\n2024:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Taxable Wage Base (TWB) increases from<br>$15,000 to $25,000 and is subsequently indexed annually due to inflation.<\/li>\n\n\n\n<li>To minimize the short-term impact of the TWB increase,<br>charged rates in calendar years 2024, 2025, 2026, and 2027 will be reduced by<br>factors of 1.471, 1.269, 1.125, and 1.053 respectively.<\/li>\n\n\n\n<li>The state\u2019s minimum charged rate is reduced from<br>0.5% to 0.1%. <\/li>\n\n\n\n<li>The state\u2019s maximum charged rate increases from<br>5.4% to 10.0%. <\/li>\n\n\n\n<li>The state\u2019s maximum fund solvency tax rate is<br>reduced from 1.4% to 1.0%. The maximum fund solvency tax rate is further reduced<br>to 0.5% during years in which an economic recession has been declared. <\/li>\n\n\n\n<li>Benefit ratio adjustment: If the average benefit<br>ratio of all employers within a sector of the North American Industry<br>Classification System (NAICS) increases by 1% or more over the average benefit<br>ratio of that sector from the previous year, then the benefit ratio of each<br>employer within such sector shall have their individual benefit ratio reduced<br>by one-half of the increase.<\/li>\n<\/ul>\n\n\n\n<p><strong>Examples of Contribution Rate calculation beginning with\ncalendar year 2024:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employer A is eligible to receive a charged rate,<br>which is calculated based on the amount of UI benefits charged to their account<br>divided by the taxable payroll reported.\u00a0<br>The employer has the following UI benefit charges and taxable wages and<br>is not eligible for an industry sector benefit ratio adjustment:\n<ul class=\"wp-block-list\">\n<li>Experience Year 2021:\u00a0\u00a0\u00a0 UI Benefit Charges = 0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Taxable<br>Wages = 0*<\/li>\n\n\n\n<li>Experience Year 2022:\u00a0\u00a0\u00a0 UI Benefit Charges = $500\u00a0\u00a0\u00a0\u00a0\u00a0<br>\u00a0\u00a0\u00a0\u00a0\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n<li>Experience Year 2023:\u00a0\u00a0\u00a0 UI Benefit Charges = $500\u00a0\u00a0\u00a0\u00a0\u00a0<br>\u00a0\u00a0\u00a0\u00a0\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n<li>$1,000 \/ $20,000 = 0.0500 Benefit Ratio<\/li>\n\n\n\n<li>0.0500 Benefit Ratio = 5.0% Preliminary Charged<br>Rate<\/li>\n\n\n\n<li>5.0% \/ 1.471 divisor = 3.4% Final Charged Rate (rounded<br>to the next higher one-tenth of one percent)<\/li>\n\n\n\n<li>3.4% Final Charged Rate + 1.0% Fund Solvency Tax<br>Rate = 4.4% 2024 Contribution Rate<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employer B is eligible to receive a charged rate,<br>has the following UI benefit charges and taxable wages and is eligible for an<br>industry sector benefit ratio adjustment of 0.006:\n<ul class=\"wp-block-list\">\n<li>Experience Year 2021:\u00a0\u00a0\u00a0 UI Benefit Charges = 0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br>\u00a0\u00a0\u00a0 Taxable Wages = 0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n<li>Experience Year 2022:\u00a0\u00a0\u00a0 UI Benefit Charges = $2,000\u00a0\u00a0\u00a0\u00a0\u00a0<br>\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n<li>Experience Year 2023:\u00a0\u00a0\u00a0 UI Benefit Charges = $2,000\u00a0\u00a0\u00a0\u00a0\u00a0<br>\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n<li>$4,000 \/ $20,000 = 0.2000 &#8211; 0.006 Benefit Ratio<br>Adjustment = 0.1940 Benefit Ratio <\/li>\n\n\n\n<li>0.1940 Benefit Ratio = 19.4% Preliminary Charged<br>Rate<\/li>\n\n\n\n<li>19.4% is subject to maximum Charged Rate cap of<br>10.0%<\/li>\n\n\n\n<li>10.0% \/ 1.471 divisor = 6.8% Final Charged Rate<br>(rounded to the next higher one-tenth of one percent) <\/li>\n\n\n\n<li>6.8% Final Charged Rate + 1.0% Fund Solvency Tax<br>Rate = 7.8% 2024 Contribution Rate<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>* UI Benefit Charges and Taxable Wages are disregarded for\nExperience Years 2020 and 2021 pursuant to PA 21-5.<\/p>\n\n\n\n<p><strong>The following UI Benefits changes are effective January\n1, 2024:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Benefits paid to a claimant through the state\u2019s voluntary Shared Work program during periods of high unemployment shall not be charged to experience rated base period employers.<\/li>\n\n\n\n<li>In all cases, a claimant\u2019s receipt of severance pay will now result in disqualification from receiving UI benefits for the period of time covered by the payment. <\/li>\n\n\n\n<li>A claimant\u2019s receipt of accrued vacation pay at the time of dismissal will not disqualify the claimant from receiving UI benefits, if otherwise eligible.\u00a0 However, vacation pay issued to a claimant during a shutdown period will result in a disqualification or reduction in the UI benefits. <\/li>\n\n\n\n<li>The minimum weekly UI benefit payment will increase from $15 to $40 and will be subsequently indexed annually due to inflation. However, the minimum benefit will revert to $15 when the federal government provides a fully federally funded supplement to the individual\u2019s weekly benefit amount. The minimum base period earnings requirement increases from $600 to $1,600 and will be subsequently indexed annually to inflation.\u00a0 However, the minimum base period earnings requirement will revert to $600 when the federal government provides a fully federally funded supplement to the individual\u2019s weekly benefit amount.<\/li>\n\n\n\n<li>Each day of absence without either good cause or notice to the employer constitutes a &#8220;separate instance&#8221; of wilful misconduct.<\/li>\n\n\n\n<li>Additionally, the maximum UI benefit rate will be frozen during the four years from October 2024 through October 2028<\/li>\n<\/ul>\n\n\n\n<p>Dunn Corporate Resources is always happy to help with questions.  <a href=\"https:\/\/dunncorp.com\/contact-us.php\">Contact us<\/a> today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an effort to improve Connecticut\u2019s Unemployment Insurance (UI) Trust Fund solvency following the COVID-19 pandemic, the legislature passed Public Acts 21-200 and 22-67, to implement reforms that were achieved through a collaborative effort of business and labor. Changes to the tax and benefit system, plus the inclusion of indexing various tax and benefits measures, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":960,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/posts\/959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/comments?post=959"}],"version-history":[{"count":2,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/posts\/959\/revisions"}],"predecessor-version":[{"id":1039,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/posts\/959\/revisions\/1039"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/media\/960"}],"wp:attachment":[{"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/media?parent=959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/categories?post=959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dunncorp.com\/blog\/wp-json\/wp\/v2\/tags?post=959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}