NYS Department of Labor to Charge Employers an Interest Assessment Surcharge
Due to the global COVID-19 Pandemic, the Unemployment Insurance Trust Fund ran out of funds to pay claims filed by unemployed workers. As a result of the unexpected emergency, New York State borrowed $9.2 billion dollars from the federal government to maintain the unemployment and pandemic benefits. State law requires NYS businesses pay the interest on the federal loan.
Beginning July 2022, employers who make unemployment insurance contributions will be notified of the 2022 Insurance Assessment Surcharge (IAS) rate of .23%. This annual charge will amount to approximately $27.60 per employee. Businesses may pay the IAS electronically when e-filing their 2Q22 NYS-45 return. Businesses will be required to make annual IAS payments until all the interest has been fully paid.
Go to http://dol.ny.gov/ias for more information or call our office at 516-409-1120.
Sandra G. Johnson, CPA