New York Employers Must Pay Interest on State’s UI Debt Again

August 2, 2023

New York Employers Must Pay Interest on State’s UI Debt Again

Throughout the COVID pandemic, New York State borrowed money from the federal government for the Unemployment Insurance (UI) program to help with widespread layoffs and state mandated business closures, resulting in nearly $13 billion in debt. The $220 billion FY 2022-2023 budget failed to allocate any funds to help pay down this debt. In July of 2022, the Department of Labor (DOL) sent notifications to businesses that they must pay an Interest Assessment Surcharge (IAS) of $27.60 per employee to pay the interest on the state’s outstanding federal debt. The $229 billion FY 2023-2024 budget, again, failed to appropriate any public funds to address UI debt. Now UI debt hovers at $6.5 billion, with interest, and the New York State Dept. of Labor is again forcing Main Street to shoulder the cost of state public policy decisions and program failure. A second round of IAS letters are being issued this month, with a surcharge of $21.60 per employee, and hardworking New York businesses will be forced to subsidize Albany’s failures yet again. For the past three years NFIB has been vocal in the media, issued grassroots action alerts, and lobbied the Governor and other elected officials to pay off the outstanding debt. We will continue our efforts for meaningful UI tax relief on your behalf. Replenishing the UI Trust Fund should not and cannot continue to fall solely on the backs of New York employers who continue to struggle to emerge in a post-pandemic economy. Contact legislators and tell them that small businesses shouldn’t pay New York’s loans! Read NFIB’s full reaction to the UI Interest Assessment Surcharge here.

Topics:

Uncategorized

State:

New York

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