Connecticut Unemployment Insurance – Special Assessment
In order to cover a funding imbalance, employers can expect to receive the first of an annual assessment during early August 2011. Payments will be due by August 31, 2011. This assessment will be used by the Connecticut Department of Labor to pay interest on funds borrowed from the U.S. Department of Labor.
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.