Virtually all employers are subject to unemployment insurance taxes under Connecticut’s unemployment compensation law (CT Gen. Stat. Sec. 31-222 et seq.). For example, coverage extends to those that:
• Are subject to the Federal Unemployment Tax Act (FUTA) and employ at least one person in Connecticut;
• Employed 10 or more agricultural workers for some portion of a day in each of 20 different calendar weeks in the current or preceding calendar year, or paid $20,000 in wages for agricultural labor in any quarter of the current or preceding calendar year;
• Paid $1,000 or more in wages for domestic service in any quarter of the current or preceding calendar year;
• Are tax-exempt nonprofit organizations that have one or more employees for some portion of a day in each of 13 different calendar weeks within either the current or preceding calendar year (liability commences at the end of the 13th week);
• Are municipal or state government agencies or federally recognized Indian tribes or tribal units; and
• Voluntarily elect to provide coverage for employees (CT Gen. Stat. Sec. 31-222).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Spouses of students working for the school;
• Real estate and insurance salespersons (except for industrial life insurance agents);
• Certain newspaper distributors (e.g. minors); and
• Individuals who perform services for a town, city, or political subdivision in lieu of a delinquent tax payment (CT Gen. Stat. Sec. 31-222).