Connecticut House Bill HB05612

Connecticut 2015 Regular Session

• Introduced: 1/20/15
• Refer: 1/20/15

Caption

An Act Eliminating Assessments Paid By Employers To Satisfy The Interest Due On Advances From The Federal Unemployment Account.

Impact

If enacted, HB 5612 would significantly reduce the financial responsibilities of employers concerning unemployment insurance. By eliminating assessments for interest on the federal advances under Title XII of the Social Security Act, it could enhance cash flow for various businesses, particularly small and medium-sized enterprises. This adjustment may empower these businesses to invest more in their operations, hire additional staff, or improve employee wages, which can contribute positively to the state's economy.

Summary

House Bill 5612 aims to alleviate the financial burden on employers in Connecticut by eliminating the requirement for businesses to pay interest on advances taken from the federal unemployment account. These advances, provided to states struggling to pay unemployment benefits, often require states to levy special assessments on employers to cover the interest costs. The bill's intent is to support local businesses by providing significant monetary relief, allowing them to allocate their resources more effectively during challenging economic times.

Contention

While the bill is likely to gain support among business owners and local industry groups, potential contention may arise from concerns about the long-term implications for the state’s unemployment insurance fund. Some critics could argue that while the bill provides immediate relief, it might jeopardize the stability of the unemployment insurance system, particularly in times of economic downturn when unemployment claims rise. Thus, the effectiveness of the bill may hinge on balancing short-term support for employers with the sustainability of the unemployment insurance framework.