Employer's Guide to Unemployment Compensation - Connecticut ...

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FILING PROCEDURE IF NO EMPLOYEES An employer, once determined liable under the contribution method of payment, must continue to file quarterly tax returns even though he has no employees. If no wages are paid in a quarter, or if no taxes are due, a tax return must still be filed. Employers may file a return reporting no employees via telephone by calling (860) 566-1018 or (203) 248-4270, using option #3 or via the Internet. The $25 Failure to File Fee also applies to returns with no contributions due if not timely filed. LIMITATION ON DETERMINATION OF LIABILITY The Administrator may determine liability for contributions due not later than three years from the date the employer actually became liable for the payment of contributions. The determination of liability becomes final twentyone (21) days after written notice to the employer unless an appeal is filed with the Appeals Division. EMPLOYER AUDITS The Federal Government requires the Connecticut Department of Labor to audit a percentage of Connecticut employers each year. Having used criteria of size, location and type of business to create groups of employers, the department then selects at random within those groups the employers to be audited. Audits insure that wages have been correctly reported and that employees have not been misclassified. Records must be available for sixteen quarters or three years plus the current year. All business records are subject to examination. SUTA DUMPING Connecticut has enacted legislation to ensure our state’s compliance with federal mandates relating to SUTA (State Unemployment Tax Act) Dumping, which occurs when a registered employer transfers payroll to a new or different registered or unregistered organization, primarily for the purpose of reducing its UI experience tax rate. The law became effective October 1, 2005. Further information may be obtained by contacting any of the Tax Division’s Field Audit offices listed on the back of this guide. PENALTIES Section 31-273 of the Connecticut General Statues provides in part that: Any person, firm or corporation who knowingly employs a person and pays such employee without declaring such payment in the normal payroll records shall be guilty of a class A misdemeanor. If after investigation, the administrator determines that there is probable cause to believe that the person, firm or 21
corporation has willfully failed to declare such payment of wages in the payroll record, the administrator shall provide an opportunity for a hearing. If the administrator determines, on the basis of facts found by him, that such nondeclaration occurred and was wilful, the administrator shall fix payments and penalties. If the administrator determines that any firm or corporation has wilfully failed to declare the payment of wages on payroll records, the administrator may impose a penalty of ten percent of the total contributions past due to the administrator. Such penalty shall be in addition to any other applicable penalty. Additionally the administrator may require the person, firm or corporation to make contributions at the maximum tax rate for a period of one year. If the person, firm or corporation is already paying at the maximum rate, the administrator may impose the maximum rate for a period of three years following the determination. Any person who knowingly makes a false statement or representation or fails to disclose a material fact in order to obtain, increase, prevent or decrease any benefit, contribution or other payment whether to be made to or by himself or any other person, and who receives any such benefit, pays any such contribution or alters any such payment to his advantage by such fraudulent means (1) shall be guilty of a class A misdemeanor if such benefit, contribution or payment amounts to $500 or less or (2) shall be guilty of a class D felony if such benefit, contribution or payment amounts to more than $500. Any person who knowingly violates any provision of the law for which no other penalty is provided shall be fined not more than $200 or imprisoned not more than six months or both. Any person who wilfully violates any regulation made by the administrator or the board, for which no penalty is specifically provided, shall be fined not more than $200. EXPERIENCE RATING Contribution Rates and Eligibility Requirements for a Rate Based on Experience Employer contribution rates are established on a calendar year basis. Qualification for a rate based on experience (the ratio of chargeable benefit payments to taxable payroll) requires that an employer’s “experience account” be chargeable with benefits for at least one full year ending June 30th of the year preceding the year during which the rate will be in effect. Employers chargeable with benefits for two full “experience years” are rated on the basis of those two years; employers chargeable for three or more years are rated on the basis of the most recent three years only. 22
Page 1 and 2: AN EMPLOYER’S GUIDE TO UNEMPLOYME
Page 3 and 4: “None” Returns by Telephone or
Page 5 and 6: PREFACE This booklet is provided by
Page 7 and 8: Form Connecticut UC-1-NP is used to
Page 9 and 10: Agricultural coverage under FUTA is
Page 11 and 12: (e) Employment compensated by commi
Page 13 and 14: MULTI-STATE WORKERS To provide cont
Page 15 and 16: EXCLUDED EMPLOYMENT- GOVERNMENTAL A
Page 17 and 18: Taxable Wages TAX LIABILITY Employe
Page 19 and 20: This Internet application will save
Page 21 and 22: date falls on Saturday, Sunday or a
Page 23 and 24: filed in the office of the clerk of
Page 25: egular tax method, the employer wil
Page 29 and 30: AND 2. The Fund Balance (solvency)
Page 31 and 32: employee’s Social Security number
Page 33 and 34: Discharges The employer’s account
Page 35 and 36: at the time he establishes his clai
Page 37 and 38: (UC-54A). For employers qualified f
Page 39 and 40: GLOSSARY Following are definitions
Page 41 and 42: CENTRAL OFFICE Connecticut Labor De
Page 43: CONNECTICUT DEPARTMENT OF LABOR FIE

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