State Senator Joe Markley Welcomes Lower FUTA Tax

April 12, 2016

Hartford-State Senator Joe Markley (R-Southington) released the following statement regarding the Department of Labor’s announcement that Connecticut businesses will pay a lower Federal Unemployment (FUTA) tax.

“At a time when there is so much bad news regarding Connecticut’s business climate, I’m pleased that a little good news has finally come our way,” said Senator Markley. “As of the end of last month, Connecticut employers will no longer have to pay the increased federal unemployment insurance tax they have been paying since 2009.

“They never should have had to pay that premium—our unemployment insurance fund became insolvent in 2009, a result of the economic downturn. Because of the long-time mismanagement of our budget, the state was forced to borrow from the federal government to capitalize the fund. As a result, employers in Connecticut had to pay 2.7% Federal Unemployment tax, as opposed to the regular 0.6%. Now that the loan is paid off, the FUTA tax has dropped back to 0.6%.

“I heard repeatedly from local businesses about the burden this created, and I share their relief now that the tax is back down,” said Senator Markley. “The economic situation in this state gives us little to celebrate, but this was one significant piece of good news.”