NY DOL Assessing a Surcharge on SUI Wages
As a result of COVID-19, the New York Department of Labor (DOL) paid more than $110 billion in unemployment and pandemic unemployment benefits between March 2020 and September 2021. This depleted the Unemployment Insurance (UI) Trust Fund. New York state borrowed $9.2 billion from the federal government to maintain UI and pandemic benefits while the COVID-19 programs were in effect.
State law requires employers to pay an annual Interest Assessment Surcharge (IAS) on the federal loan.
In July, if you make New York state unemployment insurance (SUI) contributions, you will receive an IAS notice.
The rate is 0.23% of SUI wages.
The calculation is on SUI from the fourth quarter 2020 through the third quarter of 2021. These are SUI wages from October 1, 2020, to September 30, 2021.
The agency estimates the amounts to be approximately $27.60 per employee.
This will be an annual payment until all interest on the federal loan has been paid off, unless the federal government abates any of the interest due on the loan.
Employers who owe $1.00 or less will not be assessed the surcharge.
The payment due date is September 30, 2022.
For more information on IAS, go to the New York DOL Interest Assessment Surcharge site.