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Update from NYCON: New York Interest Assessment Surcharge

July 20, 2011
Special Bulletin for All Employers Regarding the NYS Interest Assessment Surcharge for 2011
*Information regarding the Unemployment Interest Assessment Surcharge Recently Sent to Your Nonprofit*
The recent national recession led to record high levels of unemployed workers receiving unemployment insurance benefits. As a result, since 2009 New York State has borrowed over $3 billion from the federal Unemployment Insurance (UI) Trust Fund.

The American Recovery and Reinvestment Act (also known as the Recovery Act) provided interest-free loans to New York and other states with insolvent Trust Funds during calendar years 2009 and 2010.Thus far, Congress has not extended the interest-free loan provisions into 2011. As it stands now, New York must pay approximately $95 million in interest on these loans to the federal government by September 30, 2011.

In order to pay the interest due for 2011 on these federal loans, New York State is required by state law to assess a temporary charge on employers, called an Interest Assessment Surcharge (IAS).

Should Congress extend the interest-free loan provision, they

will either credit your account or refund the money


New York’s Interest Assessment Surcharge rate for 2011 is 0.25%. Each employer’s surcharge amount is determined by multiplying the total taxable wages in the most recently completed payroll year (October 1, 2009 through September 30, 2010) by the IAS rate of 0.25 percent. Therefore, the maximum amount that most employers will be assessed is $21.25 per employee.

Payment of the IAS is due by August 15, 2011.
If you have any questions, please call the Employer Accounts Adjustment Section of the UI Division at 1-888-899-8810.

NYCON’s Unemployment Program Partner
FNP Logo
The Interest Assessment Surcharge fee is waived
per New York legislation for reimbursing employers.

Members of
First Nonprofit’s Unemployment
do not
have to pay this

For more information
on becoming a member

of First Nonprofit’s
Program please
contact Cecilia Piazza

or Kelly Scott at 800.526.4352
ext 7729.




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