In 2008-2009, New York State borrowed $3.5 billion from the
federal government as a result of skyrocketing unemployment rates and increased
unemployment benefit claims during the economic recession.
Last year, NFIB, labor interests and other leaders in the business community
came together with the Governor’s Administration to address the structural
deficiencies in the unemployment insurance system. The result was the enactment
of Unemployment
Insurance Reform legislation in 2013, which is designed to make the
unemployment insurance system sustainable and save employers money over time.
The legislation
and reforms have enabled the State to pay off the balance of the federal
loan and interest at an accelerated rate. While faster repayment is good news,
employers in the state should however expect an Interest Assessment Surcharge (IAS)
bill from the Department of Labor in mid-July 2014, similar to the bills the
Department has issued in the past. The maximum amount that employers will be
charged in 2014 is $5.95 per employee, compared with $12.75 per employee in
2013. The State anticipates that the federal loan and interest payments will be
fully paid off by 2016.
Please visit the New York State Department of Labor for
answers to Frequently
Asked Questions.
