Due to the economic downturn in 2008 and 2009, the Unemployment Insurance Trust Fund has not had enough funds to pay for claims filed by unemployed workers, and as a result, New York State borrowed from the federal government to cover the difference. The debt from these federal loans has grown to $3.5 billion, with $85 million in interest due to the federal government for 2013. The New York State Department of Labor is required by law to assess a temporary Interest Assessment Surcharge (IAS) on employers to cover the interest due on the federal loan each year.
As a result of Unemployment Insurance Reform legislation signed into law by Governor Andrew M. Cuomo in March, the IAS will be less each year and end two years sooner, saving New York State employers approximately $200 million in IAS payments. Over a ten 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.
Each employer's surcharge amount was calculated using the wages subject to contributions for the current payroll year (the fourth quarter of 2011 through the third quarter of 2012) and multiplying those wages by the IAS rate of .15%. The maximum amount that employers will be assessed is $12.75 per employee.
If you have any questions, please call the Employer Accounts Adjustment Section of the UI Division at 1-888-899-8810.
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