NFIB NY 2023 Victories & Continued Challenges

Victories: Led the Charge for Property Tax Relief Under the Tax Cap NFIB was the leader in the “Keep the Cap New York” campaign and helped defeat proposals that would weaken the property tax cap. Since it was enacted in 2012, the property tax cap has produced $25 billion in savings and helped limit the tax burden on property owners. Workers’ Compensation NFIB supported cost saving workers’ compensation reform in 2017, and in 2022 put extensive pressure on the governor to veto three bills passed by the legislature that would have added billions of dollars in new system costs and increased small business premiums. NFIB was successful in securing the Governor’s vetoes and continues to protect small businesses from rising premiums. Major Small Business Tax Cuts

NFIB successfully fought to exempt almost 80% of employers from the MTA payroll tax. Those that are not exempt pay at a drastically reduced rate.
Reduced estate taxes and defeated initiatives to increase them.
Expanded small business tax deductions from 5% to 15% for NY state’s LLCs, S-Corps, partnerships, and sole proprietorships.

Defeated Albany-Run Single-Payer Healthcare NFIB opposed the effort to eliminate all private health insurance in New York and create a new government-run single-payer healthcare system. This system would have cost $250 billion in new taxes, 80% of which would have fallen on the backs of NY small business owners. NFIB remains vigilant as this bill continues to regularly resurface in Albany. NFIB Challenges: Unemployment Insurance: Throughout the COVID pandemic, New York borrowed more than $10 billion from the federal government to fund the long-troubled Unemployment Insurance (UI) program. The state has not contributed any money to replenish the UI Trust Fund, resulting in the highest possible state UI taxes and increased federal taxes. Additionally, in August 2022 businesses were notified they owed an “Interest Assessment Surcharge” (IAS) on the federal loan’s interest. The 2022 IAS was $27.60 per employee and will continue to be charged annually if New York State has an outstanding debt. NFIB continues to advocate for the state to replenish the UI Trust Fund and provide much-needed UI tax relief for small businesses. COVID Sick Leave: The federal COVID-19 Emergency ended on May 11, 2023, but New York’s COVID paid sick leave law remains in effect without an end date. Employers in New York State, dependent on the size of the business, are still required to provide at least 5, and up to 14 days of job protected, paid COVID sick leave to employees who take leave because of a mandatory or precautionary order of quarantine or isolation due to COVID. This is yet another unnecessary burden on already struggling small businesses. NFIB strongly supports and is advocating for legislation to permanently end COVID-19 paid sick leave. Weekly Pay: While many businesses across the country pay on a bi-weekly schedule, anyone who qualifies as a manual worker under New York law is supposed to receive wages every week. A 2019 court ruling determined that manual workers not receiving their pay weekly were victims of wage theft. As a result, New York has seen an explosion of costly class action lawsuits, with plaintiffs being awarded liquidated damages (100% of the late wages for the last six years), attorneys’ fees, and pre-judgment interest. Settlements have reached $29 million, and these claims can be disastrous for businesses of all sizes. NFIB is leading the charge in rectifying this situation by working on legislation that will prohibit a party from filing a class action legal proceeding and remove the right to liquidated damages in the circumstance of misclassification.

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Taxes

NFIB NY 2023 Victories & Continued Challenges

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