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 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.
Due to the Governor's Unemployment Insurance Reform legislation, his economic development policies, and the improved economy, the Trust Fund loan is reducing at a rapid rate. By the end of 2014, the balance of the loan is expected to be just on-half of what was owed prior to the Reform. 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.
For 2014, all businesses in New York State will receive more than a 50% decrease in their Unemployment Insurance Interest Assessment Surcharge from 2013 - the first ever decrease of this size. Each employer's surcharge amount was calculated using the wages subject to contributions for the current payroll year (the fourth quarter of 2012 through the third quarter of 2013) and multiplying those wages by the IAS rate of .07%. The maximum amount that employers will be assessed is $5.95 per employee.
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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