House Passes Tax Cut for Local BusinessesApril 29, 2021
On Monday, the House of Representatives unanimously approved H.B. 5377, An Act Concerning the Removal Of COVID-19 Related Layoffs From the Unemployment Compensation Experience Account. If passed by the Senate and signed by the Governor, the bill will cut taxes for local businesses.
The legislation excludes COVID-19 related layoffs from the Unemployment Compensation Experience Account and new contribution rate for 2021.
The usual rate a business must contribute to the Unemployment Compensation Experience Account increases based on the number of employees laid off. Doing so compensates for the increased strain the layoffs present to our unemployment fund.
Under HB 5377, unemployment benefits paid to former employees from July 1, 2019 to June 30, 2021 will not affect an employer’s experience rate, lifting a significant burden for local businesses.
Small and local businesses were hit particularly hard by the pandemic. Although Connecticut's strong COVID-19 response and vaccine distribution efforts have signaled a brighter future, there is still a lot of work to be done, especially for small business owners. This bill will ensure they have one less financial burden to consider as they work to recover.