GOP Leaders Warn Employers of ‘Special’ August Tax

On August 1, most employers in Connecticut will get slammed by a bill from the Connecticut Department of Labor, charging them a fee for each person they employ.

This “special assessment” fee of $7.50 for each full-time employee is meant to help the state pay back the interest due on an $810 million federal loan borrowed during the recession to fund unemployment insurance benefits. State Senator Len Fasano, Senate Minority Leader Pro Tempore, and State Representative Larry Cafero, House Republican Leader, want to alert employers to this fee and the lingering burdens caused by the recession in Connecticut.

“Have 10 employees? Well get ready to fork over $75. What about 100? Now you owe the state hundreds. So much for being open for business,” said Senator Fasano. “This special assessment fee – a fancy way of saying ‘tax’ – is yet another burden on Connecticut employers that comes at a time when it is increasingly difficult for businesses to grow and add jobs,” said Fasano.

“Employers have been shouldering this burden since 2011, and Connecticut still owes the federal government $432 million,” said Representative Cafero. “At a time when our economic health is struggling, our employers will take a hit from this added fee.”

According to the Connecticut Department of Labor original estimates in 2011 indicated that this fee would only need to be collected for 2-3 years.

“Clearly, we are way off track, and the people of Connecticut will feel the burden of this tax for many years,” said Cafero.

“We recognize that we have to pay down the debt we incurred during a time of crisis,” said Fasano. “However, if our economy was healthier, if businesses were prospering, and if we had restored all the jobs lost during the recession, this special assessment would not be as much of a burden. Unfortunately, today there is no doubt that employers of all sizes will feel the impact of this added fee,” said Fasano.

The notices indicating what each employer is required to pay will be sent by the DOL on August 1 and businesses will have 30 days to pay their bills. If full payment is not made within 60 days, the employer will have to pay a fine.

Posted by Chris

Leave a Reply

Your email address will not be published. Required fields are marked *