NYS Interest Assessment Surcharge for NYS Employers set at 0.25% due August 15th, 2011  

Due to the high rate of unemployment, New York State, had to borrow money from the Federal government in order to meet unemployment insurance (UI) benefits obligations.  Normally, there should be sufficient revenues generated from quarterly UI employer tax collections to repay the federal loan in time to avoid interest charges.  As a result of the recession there have been insufficient revenues from unemployment insurance (UI) taxes to satisfy the loans and to avoid the interest assessment.  In 2009 and 2010, the federal government provided interest-free loans to states with insolvent Trust funds.  Thus far, Congress has not extended the interest-free loan provisions for 2011.  Therefore, New York owes approximately $95 million in interest for this year, which must be paid 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 to employers, called an Interest Assessment Surcharge (IAS).  Should Congress extend the interest-free loan provision, the State will either credit your account or refund the money paid.  Payment of the IAS is due by August 15, 2011.  

All employers who pay unemployment insurance (UI) tax to the State are liable for the IAS.  State and local government and not-for-profit employers who self-insure for UI purpose are not liable for the IAS.

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 ($8,500 per employee) 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 most employers will be assessed is $21.25 per employee.

NYS will be mailing the IAS bill during July 2011, if you do not receive an IAS bill you can contact the Employer Accounts Adjustment Section of the Unemployment Division at 1-888-899-8810 or your accountant at DDK who can also follow-up on your behalf.