PA 08-60—HB 5628

Labor and Public Employees Committee

Finance, Revenue and Bonding Committee

AN ACT CONCERNING ELECTRONIC UNEMPLOYMENT COMPENSATION TAX PAYMENTS

SUMMARY: This act requires employers with 250 or more employees that pay unemployment compensation taxes or make payments in lieu of such taxes to pay electronically starting with the first calendar quarter of 2009. Employers this size have been required to make quarterly wage reports electronically since 1991.

The act does not specify the form of electronic payment, but the existing electronic wage report requirement states they may be made on magnetic tape, diskette, or other similar electronic means the unemployment administrator prescribes.

The act's requirement also applies to any agent making such payments on behalf of one or more employers for a total of 250 or more employees.

EFFECTIVE DATE: October 1, 2008

BACKGROUND

Nonprofits and Municipalities

By law, some employers, such as nonprofits and municipalities, are given the option of paying unemployment taxes or reimbursing the unemployment compensation fund through payments in lieu of taxes to cover the amount of benefits paid to former employees.

OLR Tracking: JM: gc: ss: dw/tjo