New York State Department of Labor Unemployment Insurance

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• Shared Work for Employers

• Q: When will the Shared Work Plan begin?
• Q: Once DOL has approved a Shared Work Plan, can the employer change it?
• Q: Can an employer lay off some workers who were originally in the plan and still keep the remainder in the plan?
• Q: Once the Shared Work Plan is in effect, can an employer hire a replacement for an employee who leaves to work for another employer?
• Q: If an employer chooses Shared Work, must it apply to the whole business or company?
• Q: Can a Shared Work Plan include a unit that consists of one employee?
• Q: Can employees who normally work overtime receive Shared Work benefits for a reduction in their overtime hours?
• Q: What effect will Shared Work benefits have on an employer's unemployment insurance rate?
• Q: Does the employer need to specify which employees will take part in the Shared Work Program?
• Q: Is an employer required to file reports while the Shared Work Plan is in effect?
• Q: Can employees receive Shared Work benefits if their hours and wages are reduced less than 20% or more than 60%?
• Q: If the employer's Shared Work Plan expires but the employees still work a reduced work schedule, can they still receive Shared Work benefits?
• Q: Are Shared Work benefits taxable?
• Q: Can people in the Shared Work Program have income tax withheld from Shared Work benefits?

Q: When will the Shared Work Plan begin?

A: The plan begins on the later of:

• The date listed on the employer's application form
• The first Monday after we approve the plan

Do not submit applications more than one month before the start date.  It is important to submit the application at least two weeks before the chosen start date of the plan. We will not approve a Shared Work Plan once the start date has passed.

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Q: Once DOL has approved a Shared Work Plan, can the employer change it?

A: Yes. An employer may:

• Change the percentage that the employees' hours are reduced  
• Return the employees to their normal working hours for a week or more

The employer may then continue the plan.

You also may delete work units from the plan. However, if you want to add work units to an existing plan, you must submit a modified application for approval.

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Q: Can an employer lay off some workers who were originally in the plan and still keep the remainder in the plan?

A: Yes. Shared Work would still prevent the layoffs of the remaining employees, which is the program's intent, or you could reduce hours and wages of the employees further to avoid any layoffs.  
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Q: Once the Shared Work Plan is in effect, can an employer hire a replacement for an employee who leaves to work for another employer?

A: Yes. The law only prohibits you from hiring additional employees to work in an affected unit. You can hire replacements for employees who leave the company while the plan is in effect.

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Q: If an employer chooses Shared Work, must it apply to the whole business or company?

A: No, you can use Shared Work in one or more departments, shifts, or units. The plan gives you the flexibility to choose the areas involved. You must apply the reductions in hours and wages equally to all of the employees in the chosen unit or department. However, you may reduce the hours and wages of employees in different departments or units by different percentages, if specified in the plan.

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Q: Can a Shared Work Plan include a unit that consists of one employee?

A: No.  An affected Unit must have at least 2 employees.

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Q: Can employees who normally work overtime receive Shared Work benefits for a reduction in their overtime hours?

A: No. Shared Work benefits are only for wages lost because of a reduction in the employee's "normal work" hours. "Normal work" hours are normally no more than 40 hours per week.

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Q: What effect will Shared Work benefits have on an employer's unemployment insurance rate?

A: Beginning April 29, 2013, your Unemployment Insurance account will not be charged for benefits paid to Shared Work participants, unless they are seasonal, temporary or intermittent employees.  Under the federal Middle Class Tax Relief and Job Creation Act of 2012, the federal government will be temporarily paying Shared Work charges to employers' unemployment insurance experience rating accounts, except for seasonal, temporary or intermittent employees.  This means that in many cases, your unemployment insurance experience rating will no longer be negatively affected by participating in Shared Work -- which will save you money in unemployment insurance contributions.  If you have any questions about the impacts of Shared Work on your UI rate, call our Liability & Determination Section at 518-457-2635.

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Q: Does the employer need to specify which employees will take part in the Shared Work Program?

A: Yes. Your plan must include the following information for all participating employees:

• Names
• Social Security account numbers 
• Normal work hours per week
• Identify an employee if they are hired for seasonal, temporary or intermittent work

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Q: Is an employer required to file reports while the Shared Work Plan is in effect?

A: Yes. You must complete part of each employee's bi-weekly Shared Work continued claim form. This is to make sure that each employee is paid the proper Shared Work benefit amount.

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Q: Can employees receive Shared Work benefits if their hours and wages are reduced less than 20% or more than 60%?

A: No. However, those employees may be eligible to receive partial benefits under the regular unemployment insurance program.

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Q: If the employer's Shared Work Plan expires but the employees still work a reduced work schedule, can they still receive Shared Work benefits?

A: No. Shared Work benefits are only payable while the plan is in effect. You should make arrangements -- before the plan expiration date -- to apply for a new plan.  This will prevent interruption of payments.

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Q: Are Shared Work benefits taxable?

A: Yes.  Any UI benefits, including Shared Work benefits, are subject to Federal, State, and Local income tax.

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Q: Can people in the Shared Work Program have income tax withheld from Shared Work benefits?

A: You can choose to have both federal and New York State income tax withheld from your benefits when you file your Shared Work unemployment insurance claim. If you choose to have taxes withheld, the withholding amount is set at 10% for federal taxes and 2.5% for New York State taxes. Taxes withheld will be reported on a 1099-G statement that is mailed after the end of the year.

The Shared Work Program is flexible. It can be customized to fit a variety of work situations. It saves money. It saves jobs.

A Shared Work Plan application can be completed online. UI Online Services provides a secure connection to your Employer Information Page. The application must be filed at least two weeks, but no more than four weeks, before the start date of the plan. Go to the UI Online Services log on page to log on or create an account.

Click here for additional information or to obtain a Shared Work Plan application. Or call: (518) 457-2635.

Or write to:

New York State Department of Labor
Unemployment Insurance Division
Liability and Determination Section
State Office Building Campus
Albany, N.Y. 12240

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