<\/p>\n\n\n\n
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
The following UI Tax changes are effective January 1,\n2024:<\/strong><\/p>\n\n\n\n Examples of Contribution Rate calculation beginning with\ncalendar year 2024:<\/strong><\/p>\n\n\n\n * UI Benefit Charges and Taxable Wages are disregarded for\nExperience Years 2020 and 2021 pursuant to PA 21-5.<\/p>\n\n\n\n The following UI Benefits changes are effective January\n1, 2024:<\/strong><\/p>\n\n\n\n\n
$15,000 to $25,000 and is subsequently indexed annually due to inflation.<\/li>\n\n\n\n
charged rates in calendar years 2024, 2025, 2026, and 2027 will be reduced by
factors of 1.471, 1.269, 1.125, and 1.053 respectively.<\/li>\n\n\n\n
0.5% to 0.1%. <\/li>\n\n\n\n
5.4% to 10.0%. <\/li>\n\n\n\n
reduced from 1.4% to 1.0%. The maximum fund solvency tax rate is further reduced
to 0.5% during years in which an economic recession has been declared. <\/li>\n\n\n\n
ratio of all employers within a sector of the North American Industry
Classification System (NAICS) increases by 1% or more over the average benefit
ratio of that sector from the previous year, then the benefit ratio of each
employer within such sector shall have their individual benefit ratio reduced
by one-half of the increase.<\/li>\n<\/ul>\n\n\n\n\n
which is calculated based on the amount of UI benefits charged to their account
divided by the taxable payroll reported.\u00a0
The employer has the following UI benefit charges and taxable wages and
is not eligible for an industry sector benefit ratio adjustment:\n\n
Wages = 0*<\/li>\n\n\n\n
\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
\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
Rate<\/li>\n\n\n\n
to the next higher one-tenth of one percent)<\/li>\n\n\n\n
Rate = 4.4% 2024 Contribution Rate<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n\n
has the following UI benefit charges and taxable wages and is eligible for an
industry sector benefit ratio adjustment of 0.006:\n\n
\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
\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n
\u00a0 Taxable Wages = $10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/li>\n\n\n\n
Adjustment = 0.1940 Benefit Ratio <\/li>\n\n\n\n
Rate<\/li>\n\n\n\n
10.0%<\/li>\n\n\n\n
(rounded to the next higher one-tenth of one percent) <\/li>\n\n\n\n
Rate = 7.8% 2024 Contribution Rate<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n\n