New Laws: CT Employers To Get Coronavirus Tax Break

CONNECTICUT — Gov. Ned Lamont signed two bills into law this week, including one that gives employers a break on their unemployment insurance taxes.

The governor signed House Bill 5377, "An Act Concerning the Removal of COVID-19 Related Layoffs from the Unemployment Compensation Experience Account" on Monday. Once it goes into effect, the state will disregard an employer's benefit charges and taxable wages between July 1, 2019, and June 30, 2021, when calculating the employer’s unemployment tax experience rate for taxable years starting on or after Jan. 1, 2022.

Out-of-work Connecticut residents may collect unemployment insurance, which is fueled by the state's Unemployment Trust Fund. The state keeps that fund flush through unemployment insurance taxes it levies on employers. One of the variables the state uses to determine how much it dings an employer for unemployment insurance taxes is the company's experience rate. That number is a function of the amount of benefits paid to its former employees and the amount of the employer's taxable wages during the previous, rolling three-year accounting period.

By virtue of this new law, employers forced to lay off workers during the economic slowdown brought on by the coronavirus pandemic won't take quite the hit in unemployment insurance they would have normally. The legislation covers taxable years starting on or after Jan. 1, 2022.

On Thursday, Lamont signed Senate Bill 892, "An Act Concerning the Criminal Justice Commission, Division of Criminal Justice and The Office of the Attorney General."

The Office of the Inspector General in Connecticut investigates law enforcement officers’ use of force and prosecutes cases to determine whether use of force was justified, among other responsibilities. Under the new law, the inspector general will become a separate, rather than an independent, office within the Division of Criminal Justice. The Criminal Justice Commission must now appoint, rather than nominate, one deputy chief state’s attorney to serve as inspector general. The law also eliminates General Assembly confirmation.