Due to the COVID-19 pandemic, applications for unemployment benefits surged as non-essential businesses were shut down by New York State, resulting in massive layoffs. The Unemployment Insurance (UI) system became quickly overwhelmed by the unparalleled spike in claims and extraordinary amounts of money poured out of New York’s UI Trust Fund. To continue to satisfy claims, New York borrowed from the federal government, like many other states; however, only New York and California still owe money to the federal government and did not use any of the billions in federal COVID relief to help pay off the federal UI advance.

During periods in which there is an outstanding federal loan, New York State law requires contributing employers to pay an annual Interest Assessment Surcharge, or IAS. Businesses were notified in June 2024 that they would, again, shoulder the state’s interest debt payment in the form of an annual IAS, which is around $15 per employee. Employers who make unemployment insurance contributions should receive a 2024 IAS amount due. Payment of the IAS is due within 30 days of receiving the notice.

NFIB will continue to advocate for UI assessment and tax relief for New York’s small businesses. Main Street cannot and should not be compelled to bear the weight of replenishing the UI trust fund and repaying the federal government alone.

For more information on the annual Interest Surcharge Assessment (IAS), please visit:

https://dol.ny.gov/ias