Connecticut 2021 Regular Session

Connecticut House Bill HB05377 Compare Versions

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Version 2 (New)

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4		-	House Bill No. 5377
	7	+	General Assembly Committee Bill No. 5377
	8	+	January Session, 2021
	9	+	LCO No. 5407
5	10
6		-	Public Act No. 21-5
	11	+
	12	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	13	+
	14	+
	15	+	Introduced by:
	16	+	(LAB)
	17	+
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8	19
9	20		AN ACT CONCERNING TH E REMOVAL OF COVID-19 RELATED
10	21		LAYOFFS FROM THE UNE MPLOYMENT COMPENSATI ON
11	22		EXPERIENCE ACCOUNT.
12	23		Be it enacted by the Senate and House of Representatives in General
13	24		Assembly convened:
14	25
15		-	Section 1. Subsection (a) of section 31-225a of the general statutes is
16		-	repealed and the following is substituted in lieu thereof (Effective October
17		-	1, 2021):
18		-	(a) As used in this chapter: [, "qualified employer"]
19		-	(1) "Qualified employer" means each employer subject to this chapter
20		-	whose experience record has been chargeable with benefits for at least
21		-	one full experience year, with the exception of employers subject to a
22		-	flat entry rate of contributions as provided under subsection (d) of this
23		-	section, employers subject to the maximum contribution rate under
24		-	subsection (c) of section 31-273, and reimbursing employers;
25		-	["contributing employer"]
26		-	(2) "Contributing employer" means an employer who is assigned a
27		-	percentage rate of contribution under the provisions of this section;
28		-	["reimbursing employer"]
29		-	(3) "Reimbursing employer" means an employer liable for payments House Bill No. 5377
	26	+	Section 1. Subsection (a) of section 31-225a of the general statutes is 1
	27	+	repealed and the following is substituted in lieu thereof (Effective October 2
	28	+	1, 2021): 3
	29	+	(a) As used in this chapter: [, "qualified employer"] 4
	30	+	(1) "Qualified employer" means each employer subject to this chapter 5
	31	+	whose experience record has been chargeable with benefits for at least 6
	32	+	one full experience year, with the exception of employers subject to a 7
	33	+	flat entry rate of contributions as provided under subsection (d) of this 8
	34	+	section, employers subject to the maximum contribution rate under 9
	35	+	subsection (c) of section 31-273, and reimbursing employers; 10
	36	+	["contributing employer"] 11
	37	+	(2) "Contributing employer" means an employer who is assigned a 12
	38	+	percentage rate of contribution under the provisions of this section; 13 Committee Bill No. 5377
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31		-	Public Act No. 21-5 2 of 3
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33		-	in lieu of contributions as provided under section 31-225; ["benefit
34		-	charges"]
35		-	(4) "Benefit charges" means the amount of benefit payments charged
36		-	to an employer's experience account under this section; ["computation
37		-	date"]
38		-	(5) "Computation date" means June thirtieth of the year preceding the
39		-	tax year for which the contribution rates are computed; ["tax year"]
40		-	(6) "Tax year" means the calendar year immediately following the
41		-	computation date; ["experience year"]
42		-	(7) "Experience year" means the twelve consecutive months ending
43		-	on June thirtieth; [and "experience period"]
44		-	(8) "Experience period" means the three consecutive experience years
45		-	ending on the computation date, except that (A) if the employer's
46		-	account has been chargeable with benefits for less than three years, the
47		-	experience period shall consist of the greater of one or two consecutive
48		-	experience years ending on the computation date, [.] and (B) to the
49		-	extent allowed by federal law and as necessary to respond to the spread
50		-	of COVID-19, for any taxable year commencing on or after January 1,
51		-	2022, the experience period shall be calculated without regard to benefit
52		-	charges and taxable wages for the experience years ending June 30, 2020,
53		-	and June 30, 2021, when applicable; and
54		-	(9) "COVID-19" means the respiratory disease designated by the
55		-	World Health Organization on February 11, 2020, as coronavirus 2019,
56		-	and any related mutation thereof recognized by the World Health
57		-	Organization as a communicable respiratory disease.
58		-	Sec. 2. Subsection (d) of section 31-225a of the general statutes is
59		-	repealed and the following is substituted in lieu thereof (Effective October
60		-	1, 2021): House Bill No. 5377
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62		-	Public Act No. 21-5 3 of 3
	45	+	["reimbursing employer"] 14
	46	+	(3) "Reimbursing employer" means an employer liable for payments 15
	47	+	in lieu of contributions as provided under section 31-225; ["benefit 16
	48	+	charges"] 17
	49	+	(4) "Benefit charges" means the amount of benefit payments charged 18
	50	+	to an employer's experience account under this section; ["computation 19
	51	+	date"] 20
	52	+	(5) "Computation date" means June thirtieth of the year preceding the 21
	53	+	tax year for which the contribution rates are computed; ["tax year"] 22
	54	+	(6) "Tax year" means the calendar year immediately following the 23
	55	+	computation date; ["experience year"] 24
	56	+	(7) "Experience year" means the twelve consecutive months ending 25
	57	+	on June thirtieth; [and "experience period"] 26
	58	+	(8) "Experience period" means the three consecutive experience years 27
	59	+	ending on the computation date, except that (A) if the employer's 28
	60	+	account has been chargeable with benefits for less than three years, the 29
	61	+	experience period shall consist of the greater of one or two consecutive 30
	62	+	experience years ending on the computation date, and (B) to the extent 31
	63	+	allowed by federal law and as necessary to respond to the spread of 32
	64	+	COVID-19, for any taxable year commencing on or after January 1, 2022, 33
	65	+	the experience period shall be calculated without regard to benefit 34
	66	+	charges and taxable wages for the experience years ending June 30, 2020, 35
	67	+	and June 30, 2021, when applicable; and 36
	68	+	(9) "COVID-19" means the respiratory disease designated by the 37
	69	+	World Health Organization on February 11, 2020, as coronavirus 2019, 38
	70	+	and any related mutation thereof recognized by the World Health 39
	71	+	Organization as a communicable respiratory disease. 40
	72	+	Sec. 2. Subsection (d) of section 31-225a of the general statutes is 41
	73	+	repealed and the following is substituted in lieu thereof (Effective October 42 Committee Bill No. 5377
63	74
64		-	(d) The standard rate of contributions shall be five and four-tenths
65		-	per cent. Each employer who has not been chargeable with benefits, for
66		-	a sufficient period of time to have his or her rate computed under this
67		-	section shall pay contributions at a rate that is the higher of (1) one per
68		-	cent, or (2) the state's five-year benefit cost rate. For purposes of this
69		-	subsection, the state's five-year benefit cost rate shall be computed
70		-	annually on or before June thirtieth and shall be derived by dividing the
71		-	total dollar amount of benefits paid to claimants under this chapter
72		-	during the five consecutive calendar years immediately preceding the
73		-	computation date by the five-year payroll during the same period,
74		-	except that, to the extent allowed by federal law and as necessary to
75		-	respond to the spread of COVID-19, for any taxable year commencing
76		-	on or after January 1, 2022, the state's five-year benefit cost rate shall be
77		-	calculated without regard to benefit payments and taxable wages for
78		-	calendar years 2020 and 2021, when applicable. If the resulting quotient
79		-	is not an exact multiple of one-tenth of one per cent, the five-year benefit
80		-	cost rate shall be the next higher such multiple.
81		-	Approved May 3, 2021
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	80	+	1, 2021): 43
	81	+	(d) The standard rate of contributions shall be five and four-tenths 44
	82	+	per cent. Each employer who has not been chargeable with benefits, for 45
	83	+	a sufficient period of time to have his or her rate computed under this 46
	84	+	section shall pay contributions at a rate that is the higher of (1) one per 47
	85	+	cent, or (2) the state's five-year benefit cost rate. For purposes of this 48
	86	+	subsection, the state's five-year benefit cost rate shall be computed 49
	87	+	annually on or before June thirtieth and shall be derived by dividing the 50
	88	+	total dollar amount of benefits paid to claimants under this chapter 51
	89	+	during the five consecutive calendar years immediately preceding the 52
	90	+	computation date by the five-year payroll during the same period, 53
	91	+	except that, to the extent allowed by federal law and as necessary to 54
	92	+	respond to the spread of COVID-19, for any taxable year commencing 55
	93	+	on or after January 1, 2022, the state's five-year benefit cost rate shall be 56
	94	+	calculated without regard to benefit payments and taxable wages for 57
	95	+	calendar years 2020 and 2021, when applicable. If the resulting quotient 58
	96	+	is not an exact multiple of one-tenth of one per cent, the five-year benefit 59
	97	+	cost rate shall be the next higher such multiple. 60
	98	+	This act shall take effect as follows and shall amend the following
	99	+	sections:
	100	+
	101	+	Section 1 October 1, 2021 31-225a(a)
	102	+	Sec. 2 October 1, 2021 31-225a(d)
	103	+
	104	+	LAB Joint Favorable
	105	+