AN EMPLOYER’S GUIDE TO UNEMPLOYMENT …

1 AN EMPLOYER S GUIDE TOUNEMPLOYMENT COMPENSATIONCONNECTICUT DEPARTMENT OF LABOR200 Folly Brook Boulevard Wethersfield, CT 06109-1114 PAGEP reface.. UNEMPLOYMENT Compensation Law..1 Who Is Required to Register - How to Register..1 Limited Liability Companies..2 Conditions of Liability.. 3 Federal Tax Liability.. 3 Successor.. 3 Agricultural.. 3 Domestic Employment.. 4 Non-profit Organizations..4 Municipalities, State Government Agencies, and Federally Recognized Indian Tribes or Tribal Units.

2 5 Voluntary Acceptance.. 5 Discontinuance of Business.. 5 Employment Definition.. 5 Service Within and Without the State.. 6 Localization..6 Base of Operations.. 7 Place from Which Work Is Directed or Controlled..7 Place of Residence ..7 Multi-state Workers.. 8 Independent Contractors.. 8 Excluded Employment .. 8 Excluded Employment - Governmental and Non-profit employers .. 10 Records to Be Maintained by employers .. 10 New Hires.. 11 Social Security Numbers..11 Display of Posters .. 11 Tax Liability.

3 12 Taxable Wages ..12 Non-taxable Remuneration .. 13 Reporting of Tips Received .. 13 Reporting of Wages/Contributions ..13 Internet Filing of UI Tax and Wage Reports .. 13 Magnetic Media Wage Reporting.. 15 TABLE OF CONTENTS None Returns by Telephone or via the Internet .. 15 Paper Wage Reporting.. 15 Taxable Employer.. 15 Reimbursement Method Employer ..16 Correction of Employer Contribution Returns.. 16 Failure to File and Pay Timely.. 16 Failure to File Fee .. 16 Interest Charge and Penalty Charges for Late Payment.

4 17 Taxable Employer .. 17 Reimburasable Employer .. 17 Collection of Past Due Contributions.. 17 Estimated Ability to Pay.. 18 Assessment .. 18 Special Assessment (When Applicable).. 18 Bond Assessment (When Applicable) ..19 Reimbursement Method employers - Basis of Charging .. 19 Election to Change Payment Option.. 19 Bonds from Foreign Contractors.. 20 Miscellaneous Information-Secretary of the State .. 20 Retroactive Wage Payments.. 20 Prohibition of Deduction from Wages .. Procedure If No Employees.

5 21 Limitation on Determination of Liability .. 21 Employer Audits .. 21 SUTA Dumping.. 21 Penalties.. 21 Experience Rating.. 22 Contribution Rates and Eligibility Requirements for a Rate Based on Experience.. 22 Rate for Newly Liable Employer ..23 Charged Rate..23 Fund Balance Tax Rate..23 Contribution Rate Factors..23 Transfer of Experience Ratings..24 UNEMPLOYMENT Benefit Entitlement.. 24 Base Period .. 24 Benefit Year .. 24 Benefit Rate and Duration..24 Dependency Allowances..25 Requalification Requirement.

6 25 UNEMPLOYMENT Claim Procedures and Their Effect on employers Experience Accounts .. 25 UNEMPLOYMENT Notice.. 25 Lack of Work Verification Form .. 26 Benefit Charging - Taxable Employer.. 26 Non-charging Separation Provisions .. 27 Voluntary Quits .. 27 Discharges ..27 Refusals of Work..28 Refusal by a Claimant of an Offer of Rehire by the Charged Employer..28 Dismissal/Severance Payments - Allocation .. 29 Other Non-charging Provisions .. 29 Benefit Charging - Reimbursement Method Employer .. 30 Notices to employers and Appeal Provisions.

7 30 Employer Participation in UNEMPLOYMENT Compensation Fact Finding Hearings ..31 Other Forms Related to Charges .. 31 Appeals Referees and Board of Review.. 32 Glossary..34 Central Office Directory.. 36 Tele-Benefits Line..37 Directory of Field Audit Offices .. Back CoverPREFACEThis booklet is provided by the Employment Security Division to enable employers covered by connecticut s UNEMPLOYMENT Compensation Law to better understand the UNEMPLOYMENT insurance system which they support through payroll is intended to assist employers in becoming acquainted with their responsibilities as well as with the responsibilities of the Department under the connecticut Law.

8 It is for information purposes only, and does not have the force of law or regulation. Many employer questions regarding Department functions and procedures are covered in the booklet, but because it is impossible to cover all circumstances, employers are urged to consult the Department for additional cooperation of the employer community is vital in order to effectively administer the UNEMPLOYMENT Compensation Law and the Department s policies and connecticut UNEMPLOYMENT Compensation Law and Official Regulations should be consulted if there are legal questions.

9 Copies of these are available through Business Management, UNEMPLOYMENT Compensation Department, 200 Folly Brook Boulevard, Wethersfield, CT 06109-1114 (Telephone (860) 263-6048).When amendments to the law affect employers rights or responsibilities, this information will be made available. Failure to be informed on provisions of the law does not relieve an employer of his ON OTHER PAYROLL-RELATED MATTERSIS AVAILABLE FROM THESE SOURCES:Federal UNEMPLOYMENT TaxSocial Security TaxFederal Withholding TaxFederal Income Internal Revenue Income TaxState Sales TaxState Corporation of Revenue Compensation CoverageDisability Benefits Compensation the insurance.

10 // THE UNEMPLOYMENT COMPENSATION LAW The connecticut UNEMPLOYMENT Compensation Law provides workers with benefits during periods of total or partial UNEMPLOYMENT . A booklet entitled A GUIDE to UNEMPLOYMENT Benefits in connecticut -Your Rights and Responsibilities explains to the unemployed worker the various steps necessary to file a claim, requirements of eligibility and how benefits are computed. Funds for the payment of UNEMPLOYMENT benefits are provided by employers through a quarterly payroll tax, or by a monthly billing reimbursement available to qualified non-profit organizations, the state, towns,cities and their political or government sub-divisions, and federally recognized Indian tribes or tribal units.