Due to the economic downturn in 2008 and 2009, the Unemployment Insurance Trust Fund did not have enough funds to pay for claims filed by unemployed workers. As a result, New York State borrowed $3.5 billion from the federal government, on behalf of employers, to cover the difference. The debt from these federal loans is being reduced at a rapid rate due to the Governor’s Unemployment Insurance Reform legislation, economic development policies, and the improved economy. While the loan balance has been paid back to the federal government, State law requires that New York State employers pay the interest on the federal loan that was in place during this current year – the Interest Assessment Surcharge (IAS). New York State employers owe the federal government $20.6 million in interest for 2015, which must be paid by September 30, 2015. The maximum amount that most employers will be assessed in 2015 is $0.93 per employee compared to $5.95 per employee in 2014. In addition, more than 123,000 employers that have an amount due of less than $1.00 will not receive an IAS bill at all.
As a result of the new law, the IAS is less than it otherwise would be, and it is very likely this will be the final year you will be required to pay an IAS on the existing loan. Over a 10-year period, the reform legislation is estimated to save New York State employers $400 million, and will make the unemployment insurance system sustainable and self-correcting for the first time in State history.
If you have any questions, please call our Unemployment Insurance Division's Customer Service Hot Line at 1-888-899-8810 and select option 1.
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