A proposal to eliminate a surcharge Connecticut businesses have been paying on their unemployment compensation taxes will get a hearing in the legislature’s Labor Committee.

HB 5314 calls for an estimated $60 million of the projected budget surplus to be used to pay a portion of the balance of interest owed on funds Connecticut borrowed from the federal government to keep the state’s unemployment compensation system afloat.

Like many other states, Connecticut borrowed to cover its share of costs for extended unemployment benefits it was required to pay as a result of prolonged high unemployment.

For Connecticut to pay back this $710 million dollar loan, employers in the state are paying an additional surcharge.

Through a little-used petition process, House Republicans have caused a hearing to be held on the bill. That hearing is scheduled for 2 pm, Tuesday March 11 at the State Legislative Office Building in Hartford.

Take action now to support this bill:

For more information, contact CBIA’s Eric Gjede at 860.244.1931 | eric.gjede@cbia.com | @egjede