House Passes Tax Cut for Local Businesses
During Monday's session, the Connecticut House of Representatives unanimously voted in favor of 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 approved by the Governor, this bill would cut taxes for local businesses.
This proposal excludes COVID-19 related layoffs from the Unemployment Compensation Experience Account and new contribution rate for 2021.
The usual rate that a business must contribute to the Unemployment Compensation Experience Account increases based on the number of employees laid off in order to compensate for the increased strain on our unemployment fund from those layoffs.
However, through H.B. 5377, unemployment benefits paid to former employees from July 1, 2019 to June 30, 2021 will not affect an employer’s experience rate. This is a huge relief for local businesses.
Small and local businesses were hit particularly hard by the COVID-19 pandemic. Although Connecticut's strong COVID-19 response and vaccine distribution have signaled a brighter future, there is still a lot of work to be done, especially for small business owners. This bill will ensure that they will have one less financial burden to consider as they work towards rebuilding.