The New York Department of Labor (DOL) has introduced a temporary interest surcharge to help the state address a substantial loan owed to the federal government. As a result of the COVID-19 pandemic, the NY DOL unexpectedly paid more than $110 billion in unemployment benefits between March 2020 and September 2021, which depleted the Unemployment Insurance Trust Fund and required New York to borrow almost $10 billion from the federal government. To help pay the interest on the loan, the NY DOL is requiring New York employers who make NYS unemployment (SUI) contributions to pay an annual Interest Assessment Surcharge (IAS).
The IAS rate is 0.23% of SUI wages from October 1, 2020 to September 30, 2021 This payment, which will be an annual payment until all interest on the federal loan has been paid off, is estimated to cost approximately $27.60 per employee.
Notice for New York employers who make SUI contributions: You will receive (if you have not already received), an “Underpaid Notice” from the Department of Labor. Payments are due September 30, 2022. Assessments must be paid by check and mailed with the notice to the following address:
NYS Unemployment Insurance
PO Box 4301
Binghamton, NY 13902-4301
For more information, visit the New York DOL Interest Assessment Surcharge page.
If you have questions about the IAS, including how to calculate it and how it will affect your business, please contact a member of the Janover team today.