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Registration and Liability (Employer Status) 

The principal function of the Employer Status Unit of the Tax Division is to identify employers' liability for unemployment insurance coverage and assist them in their efforts to comply with state unemployment insurance laws and regulations.

The major tasks within this function are:

  • Identify potential employers subject to UI tax law
  • Determine status (e.g. new, successor, non-subject status)
  • Notify employers of their liability and initial rates
  • Terminate inactive employer accounts
  • Process and record all coverage information
  • Handle liability appeals
  • Maintain accurate and current files on each employer

Any employer who (a) in any calendar quarter in either the current or preceding calendar year paid wages for services in employment of $1,500 or more or (b) had in employment at least one individual for some portion of a day in each of twenty different weeks, not necessarily consecutive, in either the current or preceding calendar year becomes liable on the first day of the year or the first day of business, whichever is earlier.  

Federal Tax Liability

Employers who are liable under the Federal Unemployment Tax Act (FUTA) become liable under the Connecticut Unemployment Compensation Law from the beginning of the calendar year or the beginning of operations in Connecticut if at least one person is employed in this state.

An employer becomes federally liable if, during either the current or preceding calendar year, he (a) paid wages of $1,500 or more in any calendar quarter or (b) had one or more employees at any time in each of twenty calendar weeks.

Government sub-divisions and certain qualified non-profit organizations are not subject to the Federal Unemployment Tax Act.


An employer becomes liable immediately by acquiring substantially all of the assets, organization, trade or business of another employer who was liable at the time of acquisition.  If the predecessor employer was not liable at the time of acquisition, the number of weeks he employed one or more persons in the calendar year of acquisition is counted along with the number of weeks the successor employer employed one or more persons in the calendar year to arrive at the twenty weeks of employment to determine liability.

Executors, administrators, successors or assignees of any former employer acquire the experience of the predecessor employer with the following exception: The experience of a predecessor employer who leased the premises and equipment from a third party and who has not transferred any assets to the successor, shall not be transferred if there is no common controlling interest in the predecessor and successor entities.  


Effective January 1, 1978, an employer who has service performed by an individual in agricultural labor is liable if the service is performed for a person who (a) during any calendar quarter in either the current or preceding calendar year paid remuneration in cash of $20,000 or more to individuals employed in agricultural labor, or (b) employed for some portion of a day in each of twenty different calendar weeks, not necessarily consecutive, ten or more individuals regardless of whether they were employed at the same moment in time.

Agricultural coverage under FUTA is also created by the conditions described above in (a) and (b).  Liability to FUTA creates liability to Connecticut Law from the beginning of operations in Connecticut if at least one person is employed in this state.

Aliens admitted to the United States to perform agricultural services are considered employees.

Domestic Employment

Any person who employs an individual for domestic service in a private home, college club or chapter of a college fraternity or sorority and who paid cash remuneration of $1,000 or more, for any calendar quarter in the current or the preceding calendar year, to individuals employed in such service, is subject to the provisions of this law.

Only cash wages are taxable under Connecticut domestic service coverage.  The cash value of other than cash payments is not taxable. This includes meals, lodging, rent, clothing or merchandise.

Non-Profit Organizations

Most non-profit organizations, even if exempt from income taxes under the Internal Revenue Code, are subject to the Connecticut Unemployment Compensation Law.  If an organization has a Sec. 501 (c)(3) exemption and has one or more employees for some portion of a day in each of thirteen different calendar weeks, whether or not consecutive, within either the current or preceding calendar year, liability commences at the end of the thirteenth week.

All other non-profit organizations are considered to be regular employers.  Refer to section entitled "Conditions of Liability."

Non-profit organizations exempt from Federal income taxes as provided under Internal Revenue Code Section 501 (c) (3), are given the option of paying unemployment taxes on the wages of covered employees, or reimbursing the Unemployment Compensation Fund for the amount of benefits paid to former employees.

Section 501 (c) (3) includes any corporation and any Community Chest fund or foundation organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or for the prevention of cruelty to children or animals, no part of net earnings of which inures to the benefit of any private stockholder or individual, no substantial part of the activities of which is carrying out propaganda or otherwise attempting to influence legislation and which does not attempt to participate or intervene in (including the publishing or distributing of statements) any political campaign.  

Voluntary Acceptance

An employer not liable under the law may volunteer to accept coverage for all his employees with one exception.  The law prohibits the voluntary coverage of service performed by an individual in the employ of his son, daughter or spouse and service performed by children under eighteen years of age in the employ of either or both parents.  A voluntary acceptance form must be submitted in writing and must include all employees who are eligible for coverage.

Voluntary acceptance of liability may be revoked by the employer at the end of any calendar year following the calendar year of acceptance.  

Discontinuance of Business

Employers who discontinue business are required to notify the Administrator in writing, giving employer number, date of discontinuance, trade name and address of successor, if any.  

For more information, contact the Employer Status Unit at (860) 263-6550.

200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000

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