CT Dept of Labor Urges Employers to Use Rapid Response Services in Advance of Layoffs or Closure; Posts Tax Rate Information
(Wethersfield, CT) — Connecticut Department of Labor (CTDOL) Commissioner Danté Bartolomeo is reminding restaurants and other employers that CTDOL programs and services are available to assist in the event of layoffs or closure. Additionally, CTDOL has posted information on their website about federal and state tax rate changes impacting employers that file taxes in January.
Commissioner Bartolomeo said, “Before an employer lays off workers or closes their doors, we urge them to contact the CTDOL Rapid Response Unit so we can get support services to their employees; it’s the right thing to do for workers and for the industries that they support. Going from employed to jobless is a big transition, but CTDOL can help employees get job search assistance, learn how to navigate the unemployment system, and get back into the job market quickly. Rapid Response services go a long way in helping dislocated workers recover from job loss.”
The CTDOL Rapid Response Unit provides free services to employees impacted by layoff or job termination. The unit connects job seekers to job search assistance and worker training programs, as well as helping eligible workers navigate unemployment benefits. For employers facing a downturn or closure, Rapid Response can assist by referring to tax and technical resources, credit and incentive programs, or other forms of assistance such as the CTDOL Shared Work program. Shared Work allows employers to avoid layoffs by temporarily reducing employee hours and using partial unemployment benefits to supplement lost wages. Employers are able to avoid the cost of recruiting and hiring when business improves, and employees keep their jobs and their fringe benefits while supplementing reduced wages with unemployment benefits.
TAX RATE INFORMATION
With the January 2023 tax filing deadline approaching, CTDOL recommends that employers visit the Unemployment Insurance Tax Division page for tax rate information.
Over the past several legislative sessions, Governor Ned Lamont and the Connecticut General Assembly took steps to assist businesses with the financial impact of pandemic borrowing for the Unemployment Trust Fund. The General Assembly:
• Enacted Public Act 22-118 to reduce the state unemployment tax by 0.2% for calendar year 2023. For employers paying taxes in 2023, this will help offset the 2022 federal unemployment tax increase related to pandemic borrowing for the Unemployment Trust Fund; and
• Enacted Public Act 21-5 to mitigate the impact of the pandemic on employer experience ratings. For most employers, this will help them keep their pre-pandemic experience rating and the lower tax rate.
Additionally, Governor Lamont authorized the use of $30M in ARPA funds to cover the cost of the Trust Fund loan interest, thereby eliminating special assessments on Connecticut companies. Employers will save approximately $27M in special assessments through September 2026, the expected life of the Trust Fund loan.
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