CONNECTICUT – Fraud Reminders
Unemployment fraud is still a recurring issue for states, employers, and employees alike. We recently received a reminder from CT on how the UI process works and what events an employer should be looking for.
ReEmployCT automatically sends the Notice to Employer of Claim Filed and Request for Information (known as the UC-21A) when a claim is filed against an employer. In cases where someone’s identity has been stolen and used to file for benefits, the 21A may be the first notification that the identity is compromised. If you receive a UC-21A form and the employee is still working, please alert Thomas & Company so we can notify the state and flag the case in our system to make sure that benefits are not paid, and your account is not charged.
CONNECTICUT – 2024 Tax Rate Updates
Connecticut is making changes to their unemployment program to improve trust fund solvency after the pandemic. According to the notice received from CT, these “changes to the tax and benefit system, plus the inclusion of indexing various tax and benefits measures, will promote long term UI Trust Fund solvency; reduce employer costs; build in cost predictability to support employer fiscal planning; and stabilize UI benefit payments to unemployed workers.”
The following UI Tax changes are effective January 1, 2024:
• The Taxable Wage Base (TWB) increases from $15,000 to $25,000 and is subsequently indexed annually due to inflation. Since the taxable wage base increased significantly for 2024, the state will adjust the charged rates in calendar years 2024- 2027 and will be reduced by factors of 1.471, 1.269, 1.125, and 1.053 respectively.
• The state’s minimum charged rate is reduced from 0.5% to 0.1%. The state’s maximum charged rate increases from 5.4% to 10.0%.
• The state’s maximum fund solvency tax rate is reduced from 1.4% to 1.0%. The maximum fund solvency tax rate is further reduced to 0.5% during years in which an economic recession has been declared.
The following UI Benefits changes are effective January 1, 2024:
• The minimum weekly UI benefit payment will increase from $15 to $40 and will be subsequently indexed annually due to inflation. However, the minimum benefit will revert to $15 when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount. The minimum base period earnings requirement increases from $600 to $1,600 and will be subsequently indexed annually to inflation. However, the minimum base period earnings requirement will revert to $600 when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount.
• Additionally, the maximum UI benefit rate will be frozen during the four years from October 2024 through October 2028
• Benefits paid to a claimant through the state’s voluntary Shared Work program during periods of high unemployment shall not be charged to experience rated base period employers.
• In all cases, a claimant’s receipt of severance pay will now result in disqualification from receiving UI benefits for the period of time covered by the payment.
• A claimant’s receipt of accrued vacation pay at the time of dismissal will not disqualify the claimant from receiving UI benefits, if otherwise eligible. However, vacation pay issued to a claimant during a shutdown period will result in a disqualification or reduction in the UI benefits.
• Each day of absence without either good cause or notice to the employer constitutes a “separate instance” of willful misconduct.
ILLINOIS – Electronic Notices for Remote Employees
Effective June 30, Illinois employers with remote employees are now required to provide work-related notices and summaries of Illinois’ minimum wage, equal pay, child labor, and wage payment laws, on their websites or via email.
House Bill 3733 “Provides that every employer with employees who do not regularly report to a physical workplace, such as employees who work remotely or travel for work, shall provide specified information by email to its employees or conspicuous posting on the employer’s website or intranet site, if such site is regularly used by the employer to communicate work-related information to employees and is able to be regularly accessed by all employees, freely and without interference.”
Similarly, service agencies for day and temporary laborers must provide summaries of the state’s Day and Temporary Labor Services Act on their websites or via email if the laborers communicate with the agencies electronically.
NEW HAMPSHIRE – 2023/24 Tax Rates Coming in September
New Hampshire is one of a few states that issues their annual tax rate notifications starting with July 1, 2023. NH 2023/2024 Tax rates are scheduled to be issued on or about September 1, 2023 for July 1, 2023 through June 30, 2024. While we do not know yet what each employer’s experience rating will be, we do know that the state recently shared that their trust fund has maintained a balance of at least $350 million for another quarter. The 1.0% reduction to the tax rates of positive rated employers (Schedule I) will remain in effect through the 3rd quarter of 2023.
PENNSYLVANIA – TAX SCAM
Pennsylvania taxpayers should be on the alert for a potential scam. Letters are being sent out from the “Tax Processing Unit” that makes threats, including seizure of property unless back taxes are paid. The goal of these letters is create a sense of urgency and create confusion with high-pressure tactics to obtain money from taxpayers fraudulently.
Some things to watch for in these types of letters:
• The letter may come from a location that is based outside of Pennsylvania.
• The letter may say “due to unpaid taxes in the State of Pennsylvania…” Legitimate letters will reference the Commonwealth of Pennsylvania.
• The letter indicates a “Distraint Warrant” has been filed and a lien will be placed on the taxpayer’s property unless the debt is paid in full.
• The letter asks the taxpayer to call a toll-free number within 15 days and that failing to respond timely will result in additional penalties.
For more information on how to avoid this scam, please visit https://www.revenue.pa.gov/PATaxTalk/Pages/Article.aspx?post=35
