Summary:
- The Taxable Wage Base (TWB) increases from $15,000 to $25,000 and is subsequently indexed annually due to inflation.
- The state’s minimum charged rate is reduced from 0.5% to 0.1%. The state’s maximum charged rate increases from 5.4% to 10.0%.
Below are the full details, but for employers in the state, the top-line information is that the state’s taxable wage will now be indexed to inflation. The last time Connecticut increased its taxable wage base was in 1999. Next year (2024) it jumps $10,000 – or 40% – to $25,000 per employee.
Complete details on Connecticut’s Unemployment Guidelines can be found here.
Connecticut is making changes to its unemployment program to improve trust fund solvency after the pandemic. According to the notices received from the state, these “changes to the tax and benefit system, plus the inclusion of indexing various tax and benefits measures, will promote long-term UI Trust Fund solvency; reduce employer costs; build in cost predictability to support employer fiscal planning; and stabilize UI benefit payments to unemployed workers.”
The following UI Tax changes are effective January 1, 2024:
- TWB increases from $15,000 to $25,000 and is subsequently indexed annually due to inflation. Since the taxable wage base increased significantly for 2024, the state will adjust the charged rates in calendar years 2024- 2027 and will be reduced by factors of 1.471, 1.269, 1.125, and 1.053 respectively.
- The state’s minimum charged rate is reduced from 0.5% to 0.1%. The state’s maximum charged rate increases from 5.4% to 10.0%.
- The state’s maximum fund solvency tax rate is reduced from 1.4% to 1.0%. The maximum fund solvency tax rate is further reduced to 0.5% during years in which an economic recession has been declared.
The following UI Benefits changes are effective January 1, 2024:
- The minimum weekly UI benefit payment will increase from $15 to $40 and will be subsequently indexed annually due to inflation. However, the minimum benefit will revert to $15 when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount. The minimum base period earnings requirement increases from $600 to $1,600 and will be subsequently indexed annually to inflation. However, the minimum base period earnings requirement will revert to $600 when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount.
- Additionally, the maximum UI benefit rate will be frozen during the four years from October 2024 through October 2028
- Benefits paid to a claimant through the state’s voluntary Shared Work program during periods of high unemployment shall not be charged to experience-rated base period employers.
- In all cases, a claimant’s receipt of severance pay will now result in disqualification from receiving UI benefits for the period of time covered by the payment.
- A claimant’s receipt of accrued vacation pay at the time of dismissal will not disqualify the claimant from receiving UI benefits, if otherwise eligible. However, vacation pay issued to a claimant during a shutdown period will result in a disqualification or reduction in the UI benefits.
- Each day of absence without either good cause or notice to the employer constitutes a “separate instance” of willful misconduct.
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