Sec. 31-225a. Definitions; employers' experience accounts; noncharging provisions; benefit ratio; rates of contribution; assessments to pay interest due on federal loans and to reimburse advance f
Sec. 31-225a. Definitions; employers' experience accounts; noncharging provisions; benefit ratio; rates of contribution; assessments to pay interest due on
federal loans and to reimburse advance fund; fund balance tax rate; notice to
employers; multiple employers; employers' quarterly reports; inspection of records; electronic payments. (a) As used in this chapter, "qualified employer" means
each employer subject to this chapter whose experience record has been chargeable with
benefits for at least one full experience year, with the exception of employers subject
to a flat entry rate of contributions as provided under subsection (d) of this section,
employers subject to the maximum contribution rate under subsection (c) of section 31-273, and reimbursing employers; "contributing employer" means an employer who is
assigned a percentage rate of contribution under the provisions of this section; "reimbursing employer" means an employer liable for payments in lieu of contributions as
provided under section 31-225; "benefit charges" means the amount of benefit payments
charged to an employer's experience account under this section; "computation date"
means June thirtieth of the year preceding the tax year for which the contribution rates
are computed; "tax year" means the calendar year immediately following the computation date; "experience year" means the twelve consecutive months ending on June thirtieth; and "experience period" means the three consecutive experience years ending on
the computation date, except that if the employer's account has been chargeable with
benefits for less than three years, the experience period shall consist of the greater of
one or two consecutive experience years ending on the computation date.
(b) (1) The administrator shall maintain for each employer, except reimbursing
employers, an experience account in accordance with the provisions of this section. (2)
With respect to each benefit year commencing on or after July 1, 1978, regular and
additional benefits paid to an individual shall be allocated and charged to the accounts
of the employers who paid him wages in his base period in accordance with the following
provisions: The initial determination establishing a claimant's weekly benefit rate and
maximum total benefits for his benefit year shall include, with respect to such claimant
and such benefit year, a determination of the maximum liability for such benefits of
each employer who paid wages to the claimant in his base period. An employer's maximum total liability for such benefits with respect to a claimant's benefit year shall bear
the same ratio to the maximum total benefits payable to the claimant as the total wages
paid by the employer to the claimant within his base period bears to the total wages paid
by all employers to the claimant within his base period. This ratio shall also be applied
to each benefit payment. The amount thus determined, rounded to the nearest dollar
with fractions of a dollar of exactly fifty cents rounded upward, shall be charged to the
employer's account.
(c) (1) (A) Any week for which the employer has compensated the claimant in the
form of wages in lieu of notice, dismissal payments or any similar payment for loss of
wages shall be considered a week of employment for the purpose of determining employer chargeability. (B) No benefits shall be charged to any employer who paid wages
of five hundred dollars or less to the claimant in his base period. (C) No dependency
allowance paid to a claimant shall be charged to any employer. (D) In the event of a
natural disaster declared by the President of the United States, no benefits paid on the
basis of total or partial unemployment which is the result of physical damage to a place
of employment caused by severe weather conditions including, but not limited to, hurricanes, snow storms, ice storms or flooding, or fire except where caused by the employer,
shall be charged to any employer. (E) If the administrator finds that (i) an individual's
most recent separation from a base period employer occurred under conditions which
would result in disqualification by reason of subdivision (2), (6) or (9) of subsection (a)
of section 31-236, or (ii) an individual was discharged for violating an employer's drug
testing policy, provided the policy has been adopted and applied consistent with sections
31-51t to 31-51aa, inclusive, section 14-261b and any applicable federal law, no benefits
paid thereafter to such individual with respect to any week of unemployment which is
based upon wages paid by such employer with respect to employment prior to such
separation shall be charged to such employer's account, provided such employer shall
have filed a notice with the administrator within the time allowed for appeal in section
31-241. (F) No base period employer's account shall be charged with respect to benefits
paid to a claimant if such employer continues to employ such claimant at the time the
employer's account would otherwise have been charged to the same extent that he employed him during the individual's base period, provided the employer shall notify the
administrator within the time allowed for appeal in section 31-241. (G) If a claimant
has failed to accept suitable employment under the provisions of subdivision (1) of
subsection (a) of section 31-236 and the disqualification has been imposed, the account
of the employer who makes an offer of employment to a claimant who was a former
employee shall not be charged with any benefit payments made to such claimant after
such initial offer of reemployment until such time as such claimant resumes employment
with such employer, provided such employer shall make application therefor in a form
acceptable to the administrator. The administrator shall notify such employer whether
or not his application is granted. Any decision of the administrator denying suspension
of charges as herein provided may be appealed within the time allowed for appeal in
section 31-241. (H) Fifty per cent of benefits paid to a claimant under the federal-state
extended duration unemployment benefits program established by the federal Employment Security Act shall be charged to the experience accounts of the claimant's base
period employers in the same manner as the regular benefits paid for such benefit year.
(I) No base period employer's account shall be charged with respect to benefits paid to
a claimant who voluntarily left suitable work with such employer (i) to care for a seriously ill spouse, parent or child or (ii) due to the discontinuance of the transportation
used by the claimant to get to and from work, as provided in subparagraphs (A)(ii) and
(A)(iii) of subdivision (2) of subsection (a) of section 31-236.
(2) All benefits paid which are not charged to any employer shall be pooled.
(3) The noncharging provisions of this chapter, except subdivisions (1)(D) and
(1)(F) of this subsection, shall not apply to reimbursing employers.
(d) The standard rate of contributions shall be five and four-tenths per cent. Each
employer who has not been chargeable with benefits, for a sufficient period of time to
have his rate computed under this section shall pay contributions at a rate that is the
higher of (1) one per cent, or (2) the state's five-year benefit cost rate. For purposes of
this subsection, the state's five-year benefit cost rate shall be computed annually on or
before June thirtieth and shall be derived by dividing the total dollar amount of benefits
paid to claimants under this chapter during the five consecutive calendar years immediately preceding the computation date by the five-year payroll during the same period.
If the resulting quotient is not an exact multiple of one-tenth of one per cent, the five-year benefit cost rate shall be the next higher such multiple.
(e) (1) As of each June thirtieth, the administrator shall determine the charged tax
rate for each qualified employer. Said rate shall be obtained by calculating a benefit
ratio for each qualified employer. The employer's benefit ratio shall be the quotient
obtained by dividing the total amount chargeable to the employer's experience account
during the experience period by the total of his taxable wages during such experience
period which have been reported by the employer to the administrator on or before the
following September thirtieth. The resulting quotient, expressed as a per cent, shall
constitute the employer's charged tax rate. If the resulting quotient is not an exact multiple of one-tenth of one per cent, the charged rate shall be the next higher such multiple,
except that if the resulting quotient is less than five-tenths of one per cent, the charged
rate shall be five-tenths of one per cent and if the resulting quotient is greater than five
and four-tenths per cent, the charged rate shall be five and four-tenths per cent. The
employer's charged tax rate will be in accordance with the following table:
Employer's Charged Tax Rate Table
Employer's
Benefit RatioEmployer's Charged
Tax Rate
.005 or less .5% minimum subject
.006 .6% to fund
.007 .7% solvency
.008 .8% adjustment
.009 .9%
.0101.0%
.0111.1%
.0121.2%
.0131.3%
.0141.4%
.0151.5%
.0161.6%
.0171.7%
.0181.8%
.0191.9%
.0202.0%
.0212.1%
.0222.2%
.0232.3%
.0242.4%
.0252.5%
.0262.6%
.0272.7%
.0282.8%
.0292.9%
.0303.0%
.0313.1%
.0323.2%
.0333.3%
.0343.4%
.0353.5%
.054 & higher
5.4% maximum subject
to fund solvency
adjustment
(2) (A) Each contributing employer subject to this chapter shall pay an assessment
to the administrator at a rate established by the administrator sufficient to pay interest
due on advances from the federal unemployment account under Title XII of the Social
Security Act (42 U.S. Code Sections 1321 to 1324). The administrator shall establish
the necessary procedures for payment of such assessments. The amounts received by
the administrator based on such assessments shall be paid over to the State Treasurer
and credited to the General Fund. Any amount remaining from such assessments, after
all such federal interest charges have been paid, shall be transferred to the Employment
Security Administration Fund or to the Unemployment Compensation Advance Fund
established under section 31-264a, (i) to the extent that any federal interest charges have
been paid from the Unemployment Compensation Advance Fund, (ii) to the extent that
the administrator determines that reimbursement is appropriate, or (iii) otherwise to the
extent that reimbursement of the advance fund is the appropriate accounting principle
governing the use of the assessments. Sections 31-265 to 31-274, inclusive, shall apply
to the collection of such assessments.
(B) On and after January 1, 1994, and conditioned upon the issuance of any revenue
bonds pursuant to section 31-264b, each contributing employer shall also pay an assessment to the administrator at a rate established by the administrator sufficient to pay the
interest due on advances from the Unemployment Compensation Advance Fund and
reimbursements required for advances from the Unemployment Compensation Advance
Fund, computed in accordance with subsection (h) of section 31-264a. The administrator
shall establish the assessments as a percentage of the charged tax rate for each employer
pursuant to subdivision (1) of this subsection. The administrator shall establish the necessary procedures for billing, payment and collection of the assessments. Sections 31-265 to 31-274, inclusive, shall apply to the collection of such assessments by the administrator. The payments received by the administrator based on the assessments, excluding
interest and penalties on past due assessments, are hereby pledged and shall be paid
over to the State Treasurer for credit to the Unemployment Compensation Advance
Fund.
(f) For each calendar year commencing with calendar year 1994, the administrator
shall establish a fund balance tax rate sufficient to maintain a balance in the Unemployment Compensation Trust Fund equal to eight-tenths of one per cent of the total wages
paid to workers covered under this chapter by contributing employers during the year
ending the last preceding June thirtieth. If the fund balance tax rate established by the
administrator results in a fund balance in excess of said per cent as of December thirtieth
of any year, the administrator shall, in the year next following, establish a fund balance
tax rate sufficient to eliminate the fund balance in excess of said per cent. The assessment
levied by the administrator at any time (A) during a calendar year commencing on or
after January 1, 1994, but prior to January 1, 1999, shall not exceed one and five-tenths
per cent, (B) during a calendar year commencing on or after January 1, 1999, shall not
exceed one and four-tenths per cent, and (C) shall not be calculated to result in a fund
balance in excess of eight-tenths of one per cent of such total wages.
(g) Each qualified employer's contribution rate for each calendar year after 1973
shall be a percentage rate equal to the sum of his charged tax rate as of the June thirtieth
preceding such calendar year and the fund balance tax rate as of December thirtieth
preceding such calendar year.
(h) (1) With respect to each benefit year commencing on or after July 1, 1978,
notice of determination of the claimant's benefit entitlement for such benefit year shall
include notice of the allocation of benefit charges of the claimant's base period employers and each such employer shall be mailed a copy of such notice of determination and
shall be an interested party thereto. Such determination shall be final unless the claimant
or any of such employers files an appeal from such decision in accordance with the
provisions of section 31-241. (2) The administrator shall, not less frequently than once
each calendar quarter, mail a statement of charges to each employer to whose experience
record any charges have been made since the last previous such statement. Such statement shall show, with respect to each week for which benefits have been paid and
charged, the name and Social Security account number of the claimant who was paid
the benefit, the amount of the benefits charged for such week and the total amount
charged in the quarter. (3) The statement of charges provided for in subdivision (2) of
this subsection shall constitute notice to the employer that it has been determined that
the benefits reported in such statement were properly payable under this chapter to the
claimants for the weeks and in the amounts shown in such statements. If the employer
contends that benefits have been improperly charged due to fraud or error, a written
protest setting forth reasons therefor shall be filed with the administrator within sixty
days of the mailing date of the quarterly statement. An eligibility issue shall not be
reopened on the basis of such quarterly statement if notification of such eligibility issue
had previously been given to the employer under the provisions of section 31-241, and
he failed to file a timely appeal therefrom or had the issue finally resolved against him.
(i) (1) At the written request of any employer which holds at least eighty per cent
controlling interest in another employer or employers, the administrator may mingle
the experience rating records of such dominant and controlled employers as if they
constituted a single employer, subject to such regulations as the administrator may make
and publish concerning the establishment, conduct and dissolution of such joint experience rating records. (2) The executors, administrators, successors or assigns of any
former employer shall acquire the experience rating records of the predecessor employer
with the following exception: The experience of a predecessor employer, who leased
premises and equipment from a third party and who has not transferred any assets to
the successor, shall not be transferred if there is no common controlling interest in the
predecessor and successor entities. (3) The administrator is authorized to establish such
regulations governing joint accounts as may be necessary to comply with the requirements of the federal Unemployment Tax Act.
(j) (1) Each employer subject to this chapter shall submit quarterly, on forms supplied by the administrator, a listing of wage information, including the name of each
employee receiving wages in employment subject to this chapter, such employee's Social Security account number and the amount of wages paid to such employee during
such calendar quarter.
(2) Commencing with the first calendar quarter of 1991, each employer subject to
this chapter who reports wages for two hundred fifty or more employees receiving wages
in employment subject to this chapter, and each person or organization that, as an agent,
reports wages for a total of two hundred fifty or more employees receiving wages in
employment subject to this chapter on behalf of one or more employers subject to this
chapter shall submit quarterly the information required by subdivision (1) of this subsection on magnetic tape, diskette, or other similar electronic means which the administrator
may prescribe, in a format prescribed by the administrator, unless such employer or
agent demonstrates to the satisfaction of the administrator that it lacks the technological
capability to report such information in accordance with this subdivision.
(3) Any employer that fails to submit the information required by subdivision (1)
of this subsection in a timely manner, as determined by the administrator, shall be liable
to the administrator for a late filing fee of twenty-five dollars. All fees collected by the
administrator under this subdivision shall be deposited in the Employment Security
Administration Fund.
(4) Commencing with the first calendar quarter of 2009, each employer subject to
this chapter who makes contributions or payments in lieu of contributions for two hundred fifty or more employees receiving wages in employment subject to this chapter,
and each person or organization that, as an agent, makes contributions or payments in
lieu of contributions for a total of two hundred fifty or more employees receiving wages
in employment subject to this chapter on behalf of one or more employers subject to this
chapter shall make such contribution or payment in lieu of contributions electronically.
(k) The employer may inspect his account records in the office of the Employment
Security Division at any reasonable time.
(P.A. 73-536, S. 4, 12; P.A. 74-229, S. 2-8, 22; P.A. 75-525, S. 3, 13; P.A. 76-74; 76-79; 76-82; 76-88; 76-98; 76-161;
76-259, S. 1, 3; P.A. 77-426, S. 2, 19; P.A. 78-368, S. 4, 5, 11; P.A. 79-187, S. 1; 79-191; 79-631, S. 91, 111; P.A. 80-483, S. 154, 186; P.A. 81-12, S. 1; 81-472, S. 61, 62, 142, 143, 159; P.A. 82-29, S. 1; P.A. 83-547, S. 1, 12; 83-587, S. 49,
96; P.A. 84-312, S. 1, 3; P.A. 85-25; 85-258, S. 2; P.A. 87-76; 87-341, S. 1, 2; P.A. 89-58; P.A. 90-314, S. 1, 3; P.A. 93-243, S. 3, 15; 93-419, S. 1, 9; P.A. 04-60, S. 3; P.A. 05-288, S. 136; P.A. 07-217, S. 145; P.A. 08-60, S. 1.)
History: P.A. 74-229 rephrased Subsec. (a)(4)(C) and authorized administrator to determine order of charging where
claimant has more than one employer in a quarter and exempting employers who paid wages of $200 or less, added
Subsec. (a)(5), set June thirtieth deadline for computation of five-year benefit cost rate in Subsec. (b) and clarified basis
for computation and authorized rounding of quotients in Subsec. (b), rephrased Subsec. (d), replaced table and deleted
provision re reduction of fund balance tax rate in Subsec. (d), deleted provision re employers review right in Subsec. (f)(3)
and distinguished between dominant and controlled and predecessor and successor employers in Subsec. (g); P.A. 75-525
defined "computation date" and "tax year" in Subsec. (a), added provisions re initiating claims filed on or after July 1,
1975, but before June 30, 1978, revised employers liability from 25% of his limit for regular benefits or an amount equaling
state's liability to 50% of benefits paid under extended duration unemployment benefits program, deleted former Subsec.
(a)(5), added provisions in Subsec. (c) re calculation of employer's benefit ratio, revised table in Subsec. (d), made minor
changes in Subsec. (f) for clarity and deleted Subsec. (i) which had defined "balance in the unemployment compensation
fund"; P.A. 76-74 clarified Subsec. (g) deleting references to mingling of experience records of predecessor and successor
employers and inserting provision re acquisition of predecessor's rating records by successor; P.A. 76-79 substituted
"chargeable" for "charged" in Subsec. (c); P.A. 76-82 made language changes for consistency and added provisions re
protests by employer in Subsec. (f); P.A. 76-88 changed basis for calculating employer's benefit ratio in Subsec. (c); P.A.
76-98 provided that weeks of compensation in lieu of notice, severance pay etc. shall be considered a week of employment
in determining employer chargeability in Subsec. (a); P.A. 76-161 deleted provisions re initiating claims filed on or after
July 1, 1978, in Subsec. (a); P.A. 76-259 clarified Subsec. (a)(4) and specified circumstances under which administrator
is to determine manner of charging benefits; P.A. 77-426 deleted references to acquisition of former or predecessor employer's rates in Subsec. (g)(2); P.A. 78-368 added provisions in Subsec. (a) re benefit years commencing on or after July 1,
1978, in Subsec. (a) and deleted reference to notice of "order of liability" for benefit charges in Subsec. (f); P.A. 79-187
specified notification to employer under Sec. 31-241 in Subsec. (f); P.A. 79-191 added provision in Subsec. (a) protecting
employers from charge of benefits resulting from natural disasters and deleted duplicate Subdiv. (5); P.A. 79-631 made
technical correction; P.A. 80-483 substituted reference to natural disasters declared by U.S. President for reference to
those declared by governor; P.A. 81-12 rearranged the section to increase its clarity and comprehensiveness, placing the
definitions of terms in Subsec. (a) and adding definitions of contributing and reimbursing employers, to insert noncharging
provisions of the chapter in Subsec. (c), and to simplify the language concerning determination of charged tax rates in
Subsec. (e); P.A. 81-472 made technical changes; P.A. 82-29 added the word "would" preceding "result" in Subsec.
(c)(1)(E); P.A. 83-547 added Subsec. (e)(2), providing a mechanism to assess employers for the interest due on loans from
the federal unemployment account, effective June 9, 1983, and applicable to tax years commencing on or after January 1,
1983; P.A. 83-587 made a technical amendment to Subsec. (g); P.A. 84-312 amended Subsecs. (d) and (e) to increase the
maximum employer's charged tax rate from 5% to 5.4%, amended Subsec. (f) to increase the minimum solvency tax rate
from negative 0.4% to 0%, and the Revisors corrected the charged tax rate table in Subsec. (e) to read "5.1%, 5.2%, 5.3%"
instead of ".1%, .2%, .3%", to correct typographical error; P.A. 85-25 amended Subsec. (c) to provide that the noncharging
provisions of Subdiv. (1)(F) of said subsection are applicable to reimbursing employers; P.A. 85-258 added Subsec.
(c)(1)(I), providing that benefits paid to claimants who quit suitable work for certain compensable reasons shall not be
charged against any employer's account; P.A. 87-76 amended Subsec. (e)(1) to establish an annual cutoff date of September
thirtieth for employers' taxable wage reports which will be used to calculate the employers' benefit ratio; P.A. 87-341
amended Subsec. (e)(2) to provide that any excess of assessments made for payment of federal interest charges shall be
transferred to the employment security administration fund; P.A. 89-58 added Subsec. (j)(2), providing for the submittal
of certain information by electronic methods; P.A. 90-314 amended Subsec. (c) to increase the minimum wages an employer
is required to pay a claimant in his base period in order to be charged for the claimant's benefits from $300 to $500; P.A.
93-243 amended Subsec. (c) to prohibit charging employers' experience accounts for benefits paid to employees discharged
upon detection of drug abuse, amended Subsec. (e) to allow reimbursement of advance fund from excess funds generated
by experience tax and to add Subpara. (B) imposing a new assessment on employers to reimburse and pay interest due on
advances from advance fund, and amended Subsec. (f) to delete fund balance tax rate table and establish a new formula
for calculating the fund balance tax rate, effective June 23, 1993; P.A. 93-419 amended Subsec. (f) to clarify that the
administrator is required to establish a fund balance tax rate for each calendar year beginning with calendar year 1994,
and made technical changes, effective July 1, 1993; P.A. 04-60 amended Subsec. (j) to make technical changes in Subdivs.
(1) and (2), and add Subdiv. (3) imposing $25 filing fee on employers that file untimely quarterly reports and requiring
deposit of all such fees into Employment Security Administration Fund, effective July 1, 2004; P.A. 05-288 made technical
changes in Subsec. (c)(1), effective July 13, 2005; P.A. 07-217 made technical changes in Subsec. (d), effective July 12,
2007; P.A. 08-60 amended Subsec. (j) by adding Subdiv. (4) requiring employers with 250 or more employees to electronically file unemployment compensation contribution or payment in lieu of contributions.
Cited. 177 C. 384.
Subsec. (a):
Subdiv. (4) cited. 184 C. 317.
Subsec. (b):
Subdiv. (2) cited. 17 CA 441.
Subsec. (c):
Subdiv. (1): Administrator erred by reading into penalty provision of this section reporting and payments deadline
found elsewhere in the act. 177 C. 384.
Subdiv. (1)(E) cited. 17 CA 441.