Prior to 2011, interest was waived on trust fund loans. Connecticut’s Unemployment Trust Fund, which became insolvent in 2009, has had unemployment insurance payouts that have exceeded revenues since 2007. The average cost per employee will be approximately $35, based on variables including amounts borrowed and total number of active Connecticut employers as of August 2011.
Connecticut will also be required to make additional payments to the Federal Unemployment Tax Act (FUTA) system to pay down the loan principal. The 2011 FUTA tax rate for Connecticut employers will increase from .8% to 1.1%, or approximately $21 per employee and is payable in January 2012.
Please contact your Marcum SALT professional for more details on these changes.