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Last month, the New York State Department of Labor (DOL) executed an order stating that, until further notice, any unemployment insurance charges for benefits paid out to workers after March 9, 2020, will not be assigned to individual employers. Instead, the cost will be charged against New York State’s general unemployment insurance account. This eases the burden many employers incurred during the COVID-19 pandemic.
The order also states that any past charges for unemployment benefits paid out to claimants since March 9, 2020, and previously applied to an employer’s account are canceled and shall instead be applied to the general account.
What this means for employers is that while it is uncertain if they will still have to pay any unemployment insurance taxes, the large number of unemployment claims they fielded due to the pandemic should have no impact on the employers’ experience ratings.
While the CARES Act already provided 50 percent relief to self-insured nonprofits, government agencies, and Native American tribes for unemployment charges occurring between March 13 and December 31, 2020, these employers are now able to be reimbursed for the other 50 percent of any charges they incurred in that timeframe. Also, future charges that would, under normal circumstances, be charged against their accounts, will instead be incurred by the state’s general account until further notice.
The DOL says that employers who receive bills, statements, or other documents may continue to protest claims and alert them to fraudulent claims for benefits.
GTM recommends that employers consult with their legal counsel to ensure they are complying with their obligations and confirm whether they will owe any payments in the future.
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