HARTFORD – State Rep. Gail Lavielle (R-143) today expressed serious concerns about an increase in unemployment taxes that Connecticut employers will have to pay starting in 2015. The additional tax is designed to help the state pay off the more than $1 billion it borrowed from the federal government in 2009 to keep its unemployment compensation trust fund solvent. Connecticut is the only state where employers will have to pay this tax. As a result, Connecticut’s employers will have the highest federal unemployment tax rate in the country.

 

“Although employers will see the increase in their federal tax bills, the state is responsible for it,” said Lavielle. “The other seven states with loans outstanding for more than five years all applied for, and obtained, waivers from the federal government. The CT Department of Labor (DOL) chose not to apply in order to help the state pay the loan off more quickly. It’s unfortunate that the DOL did not consult with or inform the legislature or the business community before making the decision. It’s even more disturbing that it did not inform employers of the change before they heard about it elsewhere. “This puts significant stress on employers,” Lavielle continued, “because businesses operating on the calendar year have already completed their budget planning for 2015 and won’t have taken the change into account. It also sends a loud and clear message to employers that doing business in Connecticut is not predictable and that making it easier and less costly for businesses to operate here is not high on the state government’s priority list. Surely it’s possible to do better.”

 

The state’s Unemployment Trust Fund, which makes required benefits payments to unemployed Connecticut workers, became insolvent in October 2009. To continue meeting its obligations,  Connecticut borrowed about $1 billion from the US Department of Labor. Currently, the loan balance stands at $432 million.  The loan was interest-free until 2011. In that year, Connecticut began billing businesses for an annual assessment to pay off the loan. The average annual cost to businesses, which has varied due to interest rate fluctuations, has been in the range of $15 – $25 per full-time employee. In 2015, however, Connecticut will become subject to an additional federal “Benefit Cost Ratio” (BCR) tax, because its loan will have been outstanding for more than five years. This will lead to an increase of  approximately $35 in per employee costs – actually a decrease in federal tax credits — for Connecticut employers. Connecticut is not the only state subject to the BCR tax. California, Indiana, Kentucky, New York, North Carolina, Ohio, and the Virgin Islands all have  unemployment trust fund loans outstanding for more than five years, but each has applied for and obtained a BCR waiver. Because Connecticut’s DOL chose not to apply for the waiver and to pass the costs along to employers, in 2015 the state’s businesses will pay an average of $161 per employee in federal unemployment taxes, the highest in the country.

 

State Rep. Themis Klarides, incoming House Republican Leader, has asked the DOL Commissioner to explore ways of stopping this increase and of preventing similar increases in the future. “I hope that the DOL will be willing to work together with the General Assembly to find a better solution,” said Lavielle. Our state’s businesses, which have had to cope with both large tax increases and an economic recovery that has lagged behind the rest of the country, have not had an easy time in recent years,” said Lavielle. “Many of my constituents who own small businesses are stunned by this latest development and are very concerned. At the very least, the legislature needs to consider improving oversight and communication of executive branch financial obligations of businesses.”

Rep Estado. Gail Lavielle (R-143) expresaron hoy serias preocupaciones sobre un aumento en los impuestos de desempleo que los empleadores de Connecticut tendrán que pagar a partir de 2015. El impuesto adicional está diseñado para ayudar a pagar el estado de la más de $ 1 mil millones que tomó prestado de el gobierno federal en 2009 para mantener su compensación por desempleo fondo fiduciario solvente. Connecticut es el único estado donde los empleadores tendrán que pagar este impuesto. Como resultado, los empleadores de Connecticut tendrán la tasa de impuestos más alta de desempleo federal en el país.

 

“Aunque los empleadores verán el aumento de sus impuestos federales, el Estado es responsable de ella”, dijo Lavielle. “Los otros siete estados con préstamos pendientes de pago por más de cinco años en todo solicitadas, y obtuvo, renuncias por parte del gobierno federal. El Departamento de Trabajo de CT (DOL) optó por no aplicar con el fin de ayudar al estado a pagar el préstamo más rápidamente. Es lamentable que el DOL no consultó con o informar a la legislatura o la comunidad empresarial antes de tomar la decisión. Es aún más preocupante que no informó a los empleadores del cambio antes de que se enteraron de que en otros lugares. “Esto pone una presión significativa sobre los empleadores”, Lavielle continuó, “porque las empresas que operan en el año natural ya han completado su planificación de presupuesto para 2015 y no haber tomado en cuenta el cambio. También envía un mensaje fuerte y claro a los empresarios que hacen negocios en Connecticut no es predecible y que lo que es más fácil y menos costoso para las empresas que operan aquí no es alto en la lista de prioridades del gobierno del estado. Sin duda, es posible hacerlo mejor “.

 

El desempleo del estado del Fondo Fiduciario, que hace los pagos de beneficios necesarios a los trabajadores desempleados de Connecticut, se declaró insolvente en octubre de 2009.

Rep Estado. Gail Lavielle (R-143) expressou hoje sérias preocupações sobre um aumento nos impostos de desemprego que os empregadores Connecticut terá que pagar, a partir de 2015. O imposto adicional é projetado para ajudar o estado a pagar mais de US $ 1 bilhões que emprestado o governo federal em 2009 para manter seu seguro-desemprego solvente fundo fiduciário. Connecticut é o único estado em que os empregadores terão de pagar este imposto. Como resultado, os empregadores de Connecticut terão a alíquota de imposto de desemprego mais elevada federal no país.

 

“Embora os empregadores vão ver o aumento de suas contas fiscais federais, o Estado é responsável por isso”, disse Lavielle. “Os outros sete estados com empréstimos em aberto por mais de cinco anos, todos pedidas, e obtidos, renúncias por parte do governo federal. O Departamento CT do Trabalho (DOL) optou por não aplicar a fim de ajudar o Estado pagar o empréstimo mais rapidamente. É lamentável que o DOL não consultou com ou informar o legislador ou da comunidade de negócios antes de tomar a decisão. É ainda mais perturbador que não informar os empregadores da mudança antes que ouviu falar sobre isso em outro lugar. “Isso coloca uma pressão significativa sobre os empregadores”, Lavielle continuou, “porque as empresas que operam no ano civil já completou seus orçamentos para 2015 e não ter tido em conta a mudança. Ele também envia uma mensagem alta e clara para os empregadores que fazer negócios em Connecticut não é previsível e que, tornando mais fácil e menos onerosa para as empresas a operar aqui não é alta na lista de prioridades do governo do estado. Certamente é possível fazer melhor. ”

 

A taxa de desemprego do estado Fundo Fiduciário, que faz pagamentos benefícios exigidos aos trabalhadores desempregados Connecticut, se tornou insolvente em Outubro de 2009.

By Stephen Krauchick

DoingItLocal is run by Steve Krauchick. Steve has always had interest with breaking news even as an early teen, opting to listen to the Watergate hearings instead of top 40 on the radio. His interest in news spread to become the communities breaking news leader in Connecticut’s Fairfield County. He strongly believes that the public has right to know what is happening in their backyard and that government needs to be transparent. Steve also likes promoting local businesses.

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