Contact the experienced employment law attorneys at Maya Murphy, P.C. today at (203) 221-3100 or JMaya@Mayalaw.com.
In Connecticut, unemployment insurance is temporary income for workers who are unemployed through no fault of their own, and who are either seeking new employment, in approved training, or awaiting recall to employment. The funding for these unemployment insurance benefits comes from taxes paid by employers within the State, and workers do not pay any of the costs. The first question for any employer within the State of Connecticut is if they are an encompassed employer.
In general, any employer who: (a) in any calendar quarter in either the current or preceding calendar year paid wages for services in employment of one thousand five hundred dollars ($1,500) or more, or (b) had in its employment at least one (1) individual for some portion of a day in each of twenty (20) different weeks, not necessarily consecutive, in either the current or preceding calendar year, becomes liable on the first day of the year or the first day of business, whichever is earlier.
An alternative situation in which an employer would be liable for Connecticut unemployment insurance is if that employer is liable under the Federal Unemployment Tax Act (FUTA). Such lialbity commences from the beginning of the calendar year, or the beginning of operations in Connecticut, if at least one (1) person is employed in the State.
A Connecticut employer may also become liable immediately by acquiring substantially all of the assets, organization, trade or business of another employer who was liable at the time of acquisition. If the predecessor employer was not liable at the time of acquisition, the number of weeks it employed one (1) or more persons in the calendar year of acquisition is counted by the Unemployment Commission, along with the number of weeks the successor employer employed one (1) or more persons in the calendar year to arrive at the twenty (20) weeks of employment to determine liability.
Liability for unemployment insurance is not simply related to traditional businesses as the public and some employers may expect, but includes many non-traditional industries such as the area of domestic employment. Any person who employs an individual for domestic service in a private home, college club or chapter of a college fraternity or sorority, and who paid cash remuneration of one thousand dollars ($1,000) or more, for any calendar quarter in the current or the preceding calendar year, to individuals employed in that service, is subject to the provisions of the unemployment compensation law, and must pay unemployment compensation payments. However, only cash wages are taxable under Connecticut domestic service coverage. The cash value of other than cash payments is not taxable. This includes meals, lodging, rent, clothing or merchandise.
Further, most non‑profit organizations, even if exempt from income taxes under the Internal Revenue Code, are subject to the Connecticut Unemployment Compensation Law. “If an organization is exempt from Federal income tax as provided under Section 501 (c)(3) of the Internal Revenue Code, and has one [1] or more employees for some portion of a day in each of thirteen [13] different calendar weeks, whether or not consecutive, within either the current or preceding calendar year, liability commences at the end of the thirteenth week.”
An employer may also further accept liability, even if it does not legally fall under unemployment compensation liability. Employers not liable under the law may volunteer to accept coverage for all their employees, with one important exception. The law prohibits the voluntary coverage of service performed by an individual in the employ of his or her son, daughter or spouse, and service performed by children under eighteen (18) years of age in the employ of either or both parents. Outside of this exception, a voluntary acceptance form must be submitted in writing and must include all employees who are eligible for coverage. Voluntary acceptance of liability may be revoked by the employer at the end of any calendar year following the calendar year of acceptance.
If you are an employer or an employee and are seeking compliance with Connecticut unemployment insurance and compensation regulations, contact the experienced employment law attorneys today at 203-221-3100, or by email at JMaya@mayalaw.com. We have the experience and knowledge you need at this critical juncture. We serve clients in both New York and Connecticut including New Canaan, Bridgeport, White Plains, and Darien.
Source: ctdol.state.ct.us
