Sec. 31-223. Application of chapter to employers. (a) Nonvoluntary liability.
Every employer who was subject to this chapter immediately prior to January 1, 1980,
shall continue to be so subject. An employer not previously subject to this chapter shall
become subject to this chapter as follows: (1) An employer subject to the Federal Unemployment Tax Act for any year shall be subject to the provisions of this chapter from
the beginning of such year if he had one or more employees in his employment in the
state of Connecticut in such year; (2) an employer who acquires substantially all of the
assets, organization, trade or business of another employer who at the time of such
acquisition was subject to this chapter shall immediately become subject to this chapter
as a successor employer; (3) an employer who, after December 31, 1973, (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 or more, or (B) for some portion
of a day in each of twenty different calendar weeks, whether or not such weeks were
consecutive, in either the current or the preceding calendar year, had in employment at
least one individual irrespective of whether the same individual was in employment in
each such day; (4) an employer for which service in employment as defined in subdivision (1) (C) of subsection (a) of section 31-222 is performed after December 31, 1971;
(5) an employer for which service in employment as defined in subdivision (1) (D) of
said subsection (a) is performed after December 31, 1971; (6) an employer which, together with one or more other employers, is owned or controlled, by legally enforceable
means or otherwise, directly or indirectly by the same interests, or which owns or controls, by legally enforceable means or otherwise, one or more other employers, and
which, if treated as a single unit or entity with such other employers or interests, or both,
would be an employer under subdivision (3) of this subsection and subparagraphs (H)
and (J) of subdivision (1) of subsection (a) of section 31-222; (7) any employer, not
defined as such by any other subdivision of this subsection, (A) for which, within either
the current or preceding calendar year, service is or was performed with respect to
which such employer is liable for any federal tax against which credit may be taken for
contributions required to be paid into a state unemployment fund, or (B) which, as a
condition for approval of this chapter for full tax credit against the tax imposed by
the federal Unemployment Tax Act, is required, pursuant to such federal act, to be an
"employer" under this chapter; (8) an employer which, having become an employer
under any of subdivisions (1) to (7), inclusive, of this subsection, has not, under subsection (c) ceased to be an employer subject to this chapter; (9) for the effective period of
its election pursuant to subsection (b), an employer which has elected to become subject
to this chapter. In determining whether an employer in question shall be considered, for
the purposes of this section, as having had a particular number of employees in his
employment at a given time, there shall be counted, in addition to his own employees,
if any, (A) the employees of each employer whose business was at the given time owned
or controlled, directly or indirectly, by the same interests which owned or controlled
the business of the employer in question, and (B) the employees of each employer,
substantially all of whose assets, organization, trade or business has, after the given time
during the same calendar year, been acquired by the employer in question. If an employer
shall contract with or shall have under him any contractor or subcontractor for any work
which is part of said employer's usual trade, occupation, profession or business, and
which is performed in, on or about the premises under such employer's control, and if
such contractor or subcontractor shall not be subject to this chapter, such employer shall,
for all the purposes of this chapter, be deemed to employ each individual in the employ
of such contractor or subcontractor for each day during which such individual is engaged
solely in performing such work; but this provision shall not prevent such employer from
recovering from such contractor or subcontractor the amount of any contributions he
may be required by this chapter to pay with respect to wages of such individuals for
such work.
(b) Voluntary liability. Any employer not so subject to this chapter may accept
the provisions of this chapter and become in all respects subject thereto by agreeing in
writing filed with the administrator to pay the contributions required from employers
subject to this chapter. Any employer with persons in his employ engaged in one or
more of the types of service specified in subdivision (5) of subsection (a) of section
31-222, except the service described by subparagraph (A) thereof, may elect that the
provisions of this chapter apply to such services by agreeing in writing filed with the
administrator to pay the contributions on wages for such services. Any employer defined
in subdivision (1) (D) or (E) of subsection (a) of section 31-222 or (5) (F) or (L) of said
section may elect either to pay the contributions on wages for services or to finance
benefits on a reimbursable basis, by paying into the Unemployment Compensation Fund
an amount equivalent to the amount of benefits paid out to claimants who during the
applicable period were paid wages by the employer concerned, said election to be made
in writing to the administrator in accordance with the provisions of subsection (g) of
section 31-225. Any employer may revoke acceptance of voluntary liability at the end
of any calendar year following the calendar year in which he made such acceptance if
he gives written notice to the administrator, accompanied by proof satisfactory to the
administrator that he has paid all contributions due under the provisions of this chapter
and that he has notified his employees of his intention to revoke such acceptance; such
application to revoke acceptance shall be submitted within thirty days after the end of
a calendar year and the administrator shall render his decision on such application within
sixty days after submission thereof and such revocation of acceptance shall be effective
on the thirty-first day of December next preceding the giving of written notice from the
administrator to the employer that he is satisfied with such proofs.
(c) Release from liability. An employer may cease to be subject to this chapter at
the end of any calendar year following the calendar year in which he became subject
to this chapter if he gives written notice to the administrator, accompanied by proof
satisfactory to the administrator that he has not employed one employee for at least
thirteen weeks during the next-preceding fifteen months, that he is not subject to the
Federal Unemployment Tax Act, and that he has notified his employees of his intention
to cease to be subject to this chapter; such application for release shall be submitted
within thirty days after the end of a calendar year and the administrator shall render his
decision on such application within sixty days after submission thereof and the employer
shall cease to be subject to this chapter on the thirty-first day of December next preceding
the giving of written notice from the administrator to the employer that he is satisfied
with such proofs. The administrator shall waive the requirement for an application for
release whenever it shall appear that the employer was unable to comply with such
requirement for the reason that, at the time when he had qualified for release from
liability under the provisions of this chapter, he was in good faith not aware of the fact
that he was subject to the provisions of this chapter. An employer who discontinues his
business and enters the armed forces of the United States shall cease immediately to be
subject to this chapter.
(d) Employment to include out-of-state service, when. For the purposes of subdivisions (5) and (7) of subsection (a), employment shall include service which would
constitute employment but for the fact that such service is deemed to be performed
entirely within another state pursuant to an election under an arrangement entered into
with such state by the administrator and an agency charged with the administration of
any other state or federal unemployment compensation law.
(e) Calendar week when December 31 and January 1 in same week. For the
purposes of subdivisions (3)(B) and (5) of subsection (a), in respect to any week including both December thirty-first and January first, the days of that week to and including
December thirty-first shall be deemed one calendar week, and the days beginning and
including January first another such week.
(1949 Rev., S. 7496; 1949, 1955, S. 3061d; 1957, P.A. 596, S. 1; 1967, P.A. 790, S. 5; 1971, P.A. 835, S. 4-6; P.A.
73-37; P.A. 75-567, S. 57, 80; P.A. 78-331, S. 38, 39, 58; 78-368, S. 2, 11; P.A. 79-34, S. 1, 2.)
History: 1967 act deleted applicability of provisions for employers with four or more employees during thirteen calendar
weeks and added applicability for employers with one or more employees during thirteen weeks, qualified provision re
elective applicability by employers employing persons under Sec. 31-222(a)(5) to except services in Subpara. (C) and
made minor wording changes; 1971 act added Subdivs. (5) to (11) in Subsec. (a) extending applicability provisions,
amended Subsec. (b) to add provision re employer's election to pay contributions on wages or to finance benefits on a
reimbursable basis and added Subsecs. (d) and (e) clarifying what constitutes employment and calendar weeks; P.A. 73-37 amended Subsec. (a)(5) to qualify applicability with regard to amount of wages paid, to increase weeks of employment
from thirteen to twenty and to include those subject to chapter under previous applicability provision of the Subdiv. in
effect before amendments were made; P.A. 75-567 changed reference to Sec. 31-226(h) to reference to Sec. 31-225(g) in
Subsec. (b); P.A. 78-331 made corrections to Subparas. of Sec. 31-222 referred to in Subsec. (b); P.A. 78-368 added
reference to Sec. 31-225(a)(1)(H) and (J) in Subsec. (a)(8); P.A. 79-34 deleted Subdivs. (3) and (4) of Subsec. (a) re
applicability to employers of three or more persons during thirteen weeks in years after 1955 and to employers of three or
more person during thirteen weeks in years after 1967, renumbering accordingly, relettered Subparas. for consistency with
other statutes and added reference to successor employers under Subdiv. (2); (Revisor's note: In 1991 the reference to
"subdivisions (5)(b) and (7)" in Subsec. (e) was changed editorially by the Revisors to read "subdivisions (3)(B) and (5)").
Constitutionality of "common control" provision upheld. 128 C. 213. Cited. 131 C. 504.
Question of fact for commissioner as to whether plaintiffs did take over substantially all of the assets or business. 135
C. 102. By purchasing one unit in a chain of stores, buyer did not become a liable employer. 135 C. 120. (1) Does not
qualify definition of employment in Sec. 31-222(a). 136 C. 387. (4) Cited. 136 C. 389. (4) (a) Reason for including this
provision in act was to insure contributions from all employers falling within the terms of the subsection. 138 C. 724.
Whether the business of a particular employer is owned or controlled by the same interests that own and control the business
of another employer is a question of fact. 139 C. 709.
Standard to determine where employee performs the greater part of his service. 7 CS 202. Cited. 9 CS 71; 12 CS 292;
18 CS 113. By using the word "usual", the legislature intended to restrict the decision of the Bello case, 101 C. 34. 9 CS
433. It is not the "usual trade, occupation, profession or business" of a bank to construct a road to improve property. 10
CS 228. Owner of a super market deemed to have employed individuals of "leased departments" for purposes of this act.
11 CS 209. Plaintiff became subject to the act by purchasing the land, buildings, equipment, machinery and good will of
an employer subject to the act. 15 CS 301. Successor to a business steps into the shoes of his predecessor. Id., 399. Individual
enterprise and corporation, controlled by the same person, with a total of four employees held subject to assessment. 17
CS 353. Manufacturer who provided physical facilities for operation of cafeteria for employees but had no control over
contract operator, held not liable for cafeteria employees unemployment compensation contributions. 19 CS 73.
Sec. 31-224. Municipal and other public employees. Section 31-224 is repealed.
(1953, S. 3062d; 1969, P.A. 700, S. 2.)
Sec. 31-225. Contributions by employers. Failure of an Indian tribe or tribal
unit to make required payments. Financing of benefits paid to employees of nonprofit organizations. Bond requirement for foreign construction contractors. (a)
Each contributing employer who is subject to this chapter shall pay to the administrator
contributions, which shall not be deducted or deductible from wages, at a rate which is
established and adjusted in accordance with the provisions of section 31-225a, stated
as a percentage of the wages paid by said employer with respect to employment. In no
event shall any employer be required to pay contributions on any amount of wages for
which said employer has previously paid contributions.
(b) Contributions shall be payable quarterly or for such shorter periods of not less
than four weeks as the administrator may determine, provided no such contribution
period shall include parts of two calendar quarters.
(c) Each contribution payment shall be made on or before the last day of the month
next following the end of the period of employment with respect to which it is made.
The administrator may make and publish regulations with reference to the details of the
computation and payment of such contributions. Indian tribes or tribal units, which units
include subdivisions, subsidiaries or business enterprises wholly owned by such Indian
tribes, subject to subparagraphs (C) and (E) of subdivision (1) of subsection (a) of section
31-222 and this section after December 20, 2000, shall pay contributions under the same
terms and conditions as all other subject employers, unless they elect to pay into the
Unemployment Compensation Fund amounts equal to the amount of benefits attributable to service in the employ of the Indian tribe.
(d) In lieu of contributions required of employers subject to this chapter, the state
shall pay into the Unemployment Compensation Fund an amount equivalent to the
amount of benefits charged to the state as provided in section 31-225a, or may at its
option make payments as provided in subdivision (1) of subsection (g) of this section.
The amount of payments required under this section to be made into the fund shall be
ascertained by the administrator as soon as practicable after the end of each calendar
quarter and shall be payable from the General Fund of the state, except as provided
hereafter. If a claimant to whom benefits were paid was paid wages by the state during
the base period from a special or administrative fund provided for by law, the payment
into the Unemployment Compensation Fund shall be made from such special or administrative fund with the approval of the Secretary of the Office of Policy and Management.
The payment by the state into the fund shall be made at such times and in such manner
as the administrator may determine and prescribe.
(e) In lieu of contributions required of employers subject to this chapter, Indian
tribes, towns, cities and other political and governmental subdivisions of the state and
of the towns and cities may pay into the Unemployment Compensation Fund an amount
equivalent to the amount of benefits charged to such Indian tribe, town, city or other
political or governmental subdivision as provided in section 31-225a, or may at its option
make payments as provided in subdivision (1) of subsection (g) of this section, provided
Indian tribes shall determine if reimbursement for benefits paid is to be elected by the
tribe as a whole, by individual tribal units or by combinations of the individual tribal
units. The amount of payments required under this section to be made into the fund shall
be ascertained by the administrator as soon as practicable after the end of each calendar
quarter. The payments by such Indian tribe, town, city or political or governmental
subdivision into the fund shall be made quarterly or at such times and in such manner
as the administrator may determine and prescribe.
(f) Payment of any bill rendered by the administrator under subsection (e) of this
section shall be made not later than thirty days after such bill was mailed to the Indian
tribe, municipality or political or governmental subdivision concerned, to the chief executive officer, clerk or other official or office having charge of making disbursements,
or to the official or office designated by the Indian tribe, municipality or political governmental subdivision as authorized to receive such notices. Payments made under the
provisions of subsection (e) of this section shall not be deducted or deductible, in whole
or in part, from the remuneration of individuals in the employ of the employer. Past due
payments of amounts due hereunder or under subsection (e) of this section shall be
subject to the same interest that applies to section 31-265 to past due contributions.
(1) Indian tribes or tribal units shall be billed for the full amount of benefits attributable to service in the employ of the Indian tribe or tribal unit on the same schedule as
other employing units that have elected to make payments in lieu of contributions.
(2) Failure of the Indian tribe or tribal unit to make required payments, including
assessment of interest and penalty, within ninety days of receipt of the bill, shall cause
the Indian tribe to lose the option to make payments in lieu of contributions, as described
in subsection (e) of this section, for the following tax year unless payment in full is
received or a payment schedule has been approved by the administrator or the administrator's designee before contribution rates for the next tax year are computed.
(3) Any Indian tribe or tribal unit that loses the option to make payments in lieu of
contributions due to late payment or nonpayment, as described in subdivision (1) of this
subsection, shall have the option reinstated if, after a period of one year, all contributions
have been made timely, provided no contributions, payments in lieu of contributions
for benefits paid, penalties or interest remain outstanding.
(4) Failure of the Indian tribe or any tribal unit thereof to make required payments,
including assessments of interest and penalty, after all collection activities deemed necessary by the administrator have been exhausted, may cause services performed for such
tribe to not be treated as "employment" for purposes of subsection (a) of section 31-222.
(5) The administrator may determine that any Indian tribe or tribal unit that loses
coverage under subdivision (4) of this subsection may have services performed for such
tribe again included as "employment" for purposes of subsection (a) of section 31-222 if all contributions, payments in lieu of contributions, penalties and interest have
been paid.
(6) The administrator shall notify the United States Internal Revenue Service and
the United States Department of Labor of: (A) Any failure of an Indian tribe or tribal
unit to make payments required under this section, including assessments of interest
and penalty, within ninety days of a final notice of delinquency; and (B) any termination
or reinstatement of coverage made under subdivisions (4) and (5) of this subsection.
(7) At the discretion of the administrator, any Indian tribe or tribal unit that elects
to become liable for payments in lieu of contributions shall be required, within sixty
days after the effective date of its election, to: (A) Execute and file with the administrator
a surety bond approved by the administrator, or (B) deposit with the administrator money
or securities on the same basis as other employers with the same election option.
(8) Notices of payment and reporting delinquency to Indian tribes or tribal units
pursuant to subsection (f) of this section shall include information that failure to make
full payment within the prescribed time frame: (A) Shall cause the Indian tribe to be
liable for taxes under the Federal Unemployment Tax Act; (B) shall cause the Indian
tribe to lose the option to make payments in lieu of contributions; and (C) may cause any
services performed in the employ of the Indian tribe to be excepted from the definition of
"employment" as provided in subsection (a) of section 31-222.
(g) Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this subsection. For the purpose of this subsection, a
nonprofit organization is an organization or group of organizations described in Section
501(c)(3) of the Federal Internal Revenue Code which is exempt from income tax under
Section 501(a) of said code.
(1) Any nonprofit organization which, pursuant to subdivision (1) (D) of subsection
(a) of section 31-222 is, or becomes, subject to this chapter on or after January 1, 1971,
shall pay contributions under the provisions of subsection (a), unless it elects, in accordance with this subparagraph, to pay to the administrator for the unemployment fund an
amount equal to the amount of regular and additional benefits and of one-half of the
extended benefits paid, that is attributable to service in the employ of such nonprofit
organization. (A) Any nonprofit organization which is, or becomes, subject to this chapter on January 1, 1971, may elect to become liable for payments in lieu of contributions
for a period of not less than one taxable year beginning with January 1, 1971, provided
it shall file with the administrator a written notice of its election within the thirty-day
period immediately following July 1, 1971. (B) Any nonprofit organization which becomes subject to this chapter after January 1, 1971, may elect to become liable for
payments in lieu of contributions for a period of not less than twelve months beginning
with the date on which it so becomes subject by filing a written notice of its election
with the administrator not later than thirty days immediately following the date of the
determination that it is so subject. (C) Any nonprofit organization which makes an
election in accordance with subparagraph (A) or subparagraph (B) of this subdivision
shall continue to be liable for payments in lieu of contributions until it files with the
administrator a written notice terminating its election not later than thirty days prior to
the beginning of the taxable year for which such termination shall first be effective,
provided liability for payments in lieu of contributions shall continue for any benefits
attributable to service in the employ of such organization while it was electing payments
in lieu of contributions. For purposes of benefit ratio and for billing purposes, an organization which terminates its election of payments in lieu of contributions shall be treated
as two separate employers. (D) Any nonprofit organization which has been paying contributions under this chapter for a period subsequent to January 1, 1971, may change to
a reimbursable basis by filing with the administrator not later than thirty days prior to
the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election shall not be terminable by the organization
for that and the next year. (E) The administrator may for good cause extend the period
within which a notice of election, or a notice of termination, must be filed and may
permit an election to be retroactive but not any earlier than with respect to benefits paid
after December 31, 1970. (F) The administrator, in accordance with such regulations
as the administrator may prescribe, shall notify each nonprofit organization of any determination which the administrator may make of its status as an employer and of the
effective date of any election which it makes and of any termination of such election.
Such determinations shall be subject to reconsideration, appeal and review in accordance
with the provisions of this chapter applicable to determination, appeal and review.
(2) Payments in lieu of contributions shall be made in accordance with the following
provisions: (A) At the end of each calendar quarter, or at the end of any other period as
determined by the administrator, the administrator shall bill each nonprofit organization
or group of such organizations which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular and additional benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed
period that is attributable to service in the employ of such organization. (B) Payment
of any bill rendered under this subsection shall be made not later than thirty days after
such bill was mailed to the last-known address of the nonprofit organization or was
otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subparagraph (D). (C) Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in
whole or in part, from the remuneration of individuals in the employ of the organization.
(D) The amount due specified in any bill from the administrator shall be conclusive on
the organization unless, within the time prescribed in section 31-241 after the bill was
mailed to its last-known address or otherwise delivered to it, the organization files an
application for redetermination by the administrator or an appeal in the manner provided
in sections 31-241 and 31-242 setting forth the grounds for such application or appeal.
The administrator or referee, as the case may be, shall promptly review and reconsider
the amount due specified in the bill and shall thereafter issue a redetermination or decision, as applicable in any case in which such application for redetermination or appeal
has been filed. Any redetermination by the administrator shall be conclusive on the
organization unless, within the time prescribed in section 31-241 after the redetermination was mailed to its last-known address or otherwise delivered to it, the organization
files an appeal in the manner prescribed in sections 31-241 and 31-242, setting forth
the grounds for the appeal. The decision of the referee shall become final on the twenty-second day after the date of its rendition unless the party aggrieved thereby, including
the administrator, files an appeal in the manner provided in section 31-249, setting forth
the grounds for the appeal. Redeterminations by the administrator shall be governed by
the provisions of section 31-243. Proceedings on appeal to the unemployment compensation referee from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with the provisions of section 31-242 and
the decision of the referee shall be subject to the provisions of sections 31-248 and 31-249. (E) Past due payments of amounts in lieu of contributions shall be subject to the
same interest that, pursuant to section 31-265 applies to past due contributions; an employer electing reimbursement is subject to the same penalties provided under this chapter as employers paying contributions.
(3) If the administrator at any time deems it necessary because of the financial
condition of the organization, any nonprofit organization that elects to become liable
for payments in lieu of contributions shall be required, within thirty days, to execute
and file with the administrator a surety bond approved by the administrator or it may
elect instead to deposit with the administrator cash or securities. The amount of such
bond or deposit shall be determined in accordance with the provisions of this subdivision.
(A) The amount of the bond or deposit required by this subdivision shall be determined
by the administrator but shall not exceed a percentage of the organization's annual
taxable payroll equal to the maximum rate that any employer liable for contributions
during the year involved would have to pay for employment as defined in subsection
(b) of section 31-222 for the four calendar quarters immediately preceding the effective
date of the election, the renewal date in the case of a bond, or the biennial anniversary
of the effective date of election in the case of a deposit of cash or securities, whichever
date shall be most recent and applicable. If the nonprofit organization did not pay wages
in each of such four calendar quarters, the amount of the bond or deposit shall be as
determined by the administrator. The term "cash" includes certified or bank checks or
other guaranteed instruments. (B) Any bond deposited under this subdivision shall be
in force for a period of not less than two taxable years and shall be renewed with the
approval of the administrator, at such times as the administrator may prescribe, but not
less frequently than at two-year intervals as long as the organization continues to be
liable for payments in lieu of contributions. The administrator shall require adjustments
to be made in a previously filed bond as the administrator deems appropriate. If the
bond is to be increased, the adjusted bond shall be filed by the organization within thirty
days of the date notice of the required adjustment was mailed or otherwise delivered to
it. Failure by any organization covered by such bond to pay the full amount of payments
in lieu of contributions when due, together with any applicable interest and penalties
provided for in subdivision (2) (E) of this subsection, shall render the surety liable on
such bond to the extent of the bond, as though the surety was such organization. (C)
Any deposit of cash or securities in accordance with this subdivision shall be retained
by the administrator in an escrow account until liability under the election is terminated,
at which time it shall be returned to the organization, less any deductions as hereinafter
provided. The administrator may deduct from the cash deposited under this subdivision
by a nonprofit organization or sell the securities it has so deposited to the extent necessary
to satisfy any due and unpaid payments in lieu of contributions and any applicable
interest and penalties provided for in subdivision (2) (E) of this subsection. The administrator shall require the organization within thirty days following any deduction from a
cash deposit or sale of deposited securities under the provisions of this subparagraph to
deposit sufficient additional cash or securities to make whole the organization's deposit
at the prior level. Any cash remaining from the sale of such securities shall be a part
of the organization's escrow account. The administrator may, at any time, review the
adequacy of the deposit made by any organization. If, as a result of such review, the
administrator determines that an adjustment is necessary, said administrator shall require
the organization to make additional deposit within thirty days of written notice of determination or shall return to it such portion of the deposit as the administrator no longer
considers necessary, whichever action is appropriate. Disposition of income from securities held in escrow shall be governed by any applicable provision of state law. (D) If
any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an
increased amount or to increase or make whole the amount of a previously made deposit,
as provided under this subdivision, the administrator may terminate such organization's
election to make payments in lieu of contributions and such termination shall continue
for not less than the four-consecutive-calendar-quarter period beginning with the quarter
in which such termination becomes effective; provided the administrator may extend
for good cause the applicable filing, deposit or adjustment period by not more than
fifteen days.
(4) If any nonprofit organization is delinquent in making payments in lieu of contributions as required under subdivision (2) of this subsection, and a bond or security as
provided in subdivision (3) of this subsection has not been required, or required and not
filed within thirty days, the administrator may terminate such organization's election
to make payments in lieu of contributions as of the beginning of the next taxable year,
and such termination shall be effective for that and the next taxable year.
(5) Each employer that is liable for payments in lieu of contributions shall pay to
the administrator for the fund the amount of regular and additional benefits plus the
amount of one-half of extended benefits paid that are attributable to service in the employ
of such employer. If benefits paid to an individual are based on wages paid by more
than one employer and one or more of such employers are liable for payments in lieu
of contributions, the amount payable to the fund by each employer that is liable for such
payments, shall be an amount which bears the same ratio to the total benefits paid to
the individual as the total base period wages paid to the individual by such employer
bear to the total base period wages paid to the individual by all of the individual's base
period employers.
(6) Any two or more employers that have become liable for payments in lieu of
contributions may file a joint application to the administrator for the establishment of
a group account for the purpose of sharing the cost of benefits paid that are attributable
to service in the employ of such employers. Each such application shall identify and
authorize a group representative to act as the group's agent for the purposes of this
subdivision. Upon the administrator's approval of the application, the administrator
shall establish a group account for such employers effective as of the beginning of the
calendar quarter in which the administrator receives the application and shall notify the
group's representative of the effective date of the account. Such account shall remain
in effect for not less than one year and thereafter until terminated at the discretion of
the administrator or upon application by the group. Upon establishment of the account,
each member of the group shall be liable for payments in lieu of contributions with
respect to each calendar quarter in the amount that bears the same ratio to the total
benefits paid in such quarter that are attributable to service performed in the employ of
all members of the group as the total wages paid for service in employment by such
member in such quarter bear to the total wages paid during such quarter for service
performed in the employ of all members of the group. The administrator shall prescribe
such regulations as he or she deems necessary with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this subdivision, for addition of new members to, and withdrawal of active members from, such
accounts, and for the determination of the amounts that are payable under this subdivision by members of the group and the time and manner of such payments.
(h) Subsections (a) to (g), inclusive, of this section shall first apply to benefits
charged with respect to benefits paid in benefit years starting on or after June 30, 1975.
(i) Notwithstanding any other provision of the general statutes to the contrary, any
employer, individual, organization, partnership, corporation or other legal entity which
engages, in any manner, in contract construction activity in this state and which has its
base of operations and is incorporated in another state, shall furnish to the administrator
before beginning any such construction activity, a bond, with a surety or sureties satisfactory to the administrator, in an amount to be determined by the administrator. The administrator shall adopt regulations, in accordance with the provisions of chapter 54, establishing the method for computation of such bond amounts. The use of such bonds shall
be limited to payment for any unpaid unemployment compensation contributions, interest and penalties due from such contractor and attributable to such contracted work.
(1949 Rev., S. 7497; 1949, S. 3063d; 1953, S. 3064d; 1957, P.A. 596, S. 2, 3; 1969, P.A. 700, S. 3; 1971, P.A. 835, S.
7-9; 1972, P.A. 71, S. 3; P.A. 73-289, S. 1, 4-6, 10; 73-536, S. 3, 12; P.A. 74-229, S. 1, 15, 16, 22; P.A. 75-525, S. 2, 13;
P.A. 76-435, S. 12, 13, 82; P.A. 77-426, S. 1, 19; 77-614, S. 19, 610; P.A. 78-368, S. 3, 11; P.A. 80-250; P.A. 81-318, S.
2, 8; 81-472, S. 60, 141, 159; June 18 Sp. Sess. P.A. 97-4, S. 4, 11; June 18 Sp. Sess. P.A. 97-11, S. 63, 65; June Sp. Sess.
P.A. 01-9, S. 21, 131.)
History: 1969 act amended Subsec. (f) to make payments by towns, cities and political subdivisions mandatory rather
than dependent upon whether the towns, cities, etc. have elected to become subject to chapter; 1971 act added references
to "governmental" subdivisions in Subsecs. (f) and (g), added option of making payments pursuant to Sec. 31-225 in
Subsec. (f) and added provisions re time for payment of bills, interest on past due payments, etc.; 1972 act deleted provision
in Subsec. (f) which had prohibited requiring towns, cities, etc. to maintain a record of their employees social security
numbers; P.A. 73-289 deleted option for calculating benefits as ratio of each employer's share of wages to total wages
paid in Subsec. (h)(5)(A) and added references to "additional" benefits in Subsec. (h)(1), (2) and (5); P.A. 73-536 changed
basis for calculating contributions under Subsec. (a) from 2.7% of wages paid to rate established and adjusted under Sec.
31-225a and deleted previous detailed provisions re adjustments, deleted provision in Subsec. (b) which had allowed
treatment of wages for payroll period which falls in two contribution periods as falling within one period, deleted Subsec.
(d) re excess in fund, relettering accordingly, amended relettered Subsec. (d) to replace detailed provisions re state payments
into fund with reference to payments equaling benefits charged to state pursuant to Sec. 31-225a and changed remaining
provisions re payments throughout section in a similar fashion; P.A. 74-229 amended Subsec. (g)(1)(C) to add proviso re
continued liability for payments and added ratio provision for calculating payments by multiple employers in Subsec.
(g)(5); P.A. 75-525 specified "contributing" employers in Subsec. (a), made payments by towns, cities, etc. in Subsec. (e)
optional rather than mandatory, replaced compensation commissioner with compensation referees in Subsec. (g)(2),
changed maximum bond in Subsec. (g) (3)(A) from 2.7% of total wages paid to 6% of taxable wages paid and deleted
Subsec. (h) re nonprofit organizations' option to make payments in lieu of contributions; P.A. 76-435 made technical
changes; P.A. 77-426 changed amount of bond in Subsec. (g)(3)(A) to percentage of payroll "equal to the maximum rate
that any employer liable for contributions during the year involved would have to pay"; P.A. 77-614 replaced commissioner
of finance and control with secretary of the office of policy and management in Subsec. (d); P.A. 78-368 allowed option
of payments as provided in Subsec. (g)(1) in Subsec. (d) and deleted reference to Sec. 31-235a in Subsec. (e); P.A. 80-250
added Subsec. (i) re bonds for those engaged in contract construction activity; P.A. 81-318 amended Subdiv. (2) of Subsec.
(g) by changing the time when referee's decision becomes final from fifteenth to twenty-second day after its rendition if
no appeal has been filed; P.A. 81-472 made technical changes; June 18 Sp. Sess. P.A. 97-4 amended Subsec. (d) to delete
provision that the state shall not be required to maintain a record of Social Security numbers of its employees, effective
October 1, 1998; June 18 Sp. Sess. P.A. 97-11 changed effective date of June 18 Sp. Sess. P.A. 97-4, S. 4. from October
1, 1998, to October 1, 1997; June Sp. Sess. P.A. 01-9 amended Subsec. (c) to add provisions re payments by Indian tribes
or tribal units, amended Subsec. (e) to add provision re determination of reimbursement by Indian tribe, and add references
to "Indian tribe", amended Subsec. (f) to make technical changes, add references to "Indian tribe" and add new Subdivs.
(1) to (8) re payments by Indian tribes or tribal units, and make technical changes for purposes of gender neutrality in
Subsecs. (a) and (g), effective July 1, 2001.
Cited. 127 C. 69; 128 C. 216; 131 C. 512; 139 C. 406; 135 C. 671. Each liable employer is only obligated to pay
contributions with respect to the wages paid to his own employees. 138 C. 724. Cited. 177 C. 384, 386; 181 C. 1, 17.
Cited. 9 CS 244; 14 CS 208.
Subsec. (a):
Cited. 177 C. 384, 385.
Does not preclude the inclusion of tips in amount of wages for the purpose of employer's contribution. 11 CS 340.
Subsec. (b):
Cited. 177 C. 384, 385.
Subsec. (c):
Cited. 177 C. 384, 385, 388.
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. (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 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 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 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 (a) one per cent or (b) 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 Ratio | Employer's Charged
Tax Rate |
| .005 or less | .5% minimum subject |
| .006 | .6% to fund |
| .007 | .7% solvency |
| .008 | .8% adjustment |
| .009 | .9% |
| .010 | 1.0% |
| .011 | 1.1% |
| .012 | 1.2% |
| .013 | 1.3% |
| .014 | 1.4% |
| .015 | 1.5% |
| .016 | 1.6% |
| .017 | 1.7% |
| .018 | 1.8% |
| .019 | 1.9% |
| .020 | 2.0% |
| .021 | 2.1% |
| .022 | 2.2% |
| .023 | 2.3% |
| .024 | 2.4% |
| .025 | 2.5% |
| .026 | 2.6% |
| .027 | 2.7% |
| .028 | 2.8% |
| .029 | 2.9% |
| .030 | 3.0% |
| .031 | 3.1% |
| .032 | 3.2% |
| .033 | 3.3% |
| .034 | 3.4% |
| .035 | 3.5% |
| .036 | 3.6% |
| .037 | 3.7% |
| .038 | 3.8% |
| .039 | 3.9% |
| .040 | 4.0% |
| .041 | 4.1% |
| .042 | 4.2% |
| .043 | 4.3% |
| .044 | 4.4% |
| .045 | 4.5% |
| .046 | 4.6% |
| .047 | 4.7% |
| .048 | 4.8% |
| .049 | 4.9% |
| .050 | 5.0% |
| .051 | 5.1% |
| .052 | 5.2% |
| .053 | 5.3% |
.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