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Unemployment Insurance Tax (FUTA/SUTA): Connecticut

Unemployment Insurance Tax (FUTA/SUTA) requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor


  • Unemployment insurance benefits are funded by employers in Connecticut by either a quarterly payroll tax contribution or a monthly-billed reimbursement paid by employers. Certain types of employers have the option to contribute to the fund via the reimbursement method rather than by paying the quarterly tax contribution. See Funding Methods.
  • Connecticut uses the ABC Test to determine whether a person is an employee for unemployment insurance coverage purposes. See ABC Test.
  • Certain types of wages are subject to state unemployment insurance tax (SUI), but only up to the annual taxable wage base amount. See SUI Taxable Wages; Taxable Wage Base.
  • The unemployment insurance tax rates are based on the employer's previous SUI experience. In addition to the base rate paid by employers, Connecticut has the right to levy a special assessment if the SUI fund is overextended. See Contribution Rates; Experience Rating Method.
  • Connecticut's SUTA dumping penalties differ from the penalties imposed by the federal model law. See SUTA Dumping.
  • Connecticut does not permit employers to make voluntary SUI contributions, but it does permit employers to combine their experience, under certain conditions. See Voluntary Contributions; Joint or Combined Accounts.
  • Employers are required to file quarterly SUI reports and payments. They must be filed electronically. Penalties are imposed for noncompliance. See Quarterly Reporting Requirements.
  • Employers' accounts will be charged for benefit overpayments resulting from their failure to timely and adequately respond to requests for information about the underlying claims. See Benefit Overpayments.
  • Connecticut employers are not required to file Multiple Worksite Reports, but they are encouraged to do so. See Multiple Worksite Reporting.
  • Employers are required to maintain accurate records of employment that are open to inspection at all time. See Recordkeeping Requirements.