NY State Senate Bill S6791

senate Bill S6791

2021-2022 Legislative Session

Relates to employer contributions to the unemployment insurance fund and the unemployment insurance maximum benefit rate

download bill text pdf

Current Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (10)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2022	referred to labor delivered to assembly passed senate
Jan 12, 2022	advanced to third reading
Jan 11, 2022	2nd report cal.
Jan 10, 2022	1st report cal.83
Jan 05, 2022	referred to labor
Jan 04, 2022	print number 6791a
Jan 04, 2022	amend (t) and recommit to labor
May 17, 2021	referred to labor

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

view additional co-sponsors

S6791 - Details

See Assembly Version of this Bill:: A7788
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §581-a, Lab L

S6791 - Summary

Specifies contribution rates for employers to the unemployment insurance fund in the 2022 and 2023 fiscal years, regardless of what the current actual size of the fund index is; sets the unemployment insurance maximum benefit rate.

S6791 - Sponsor Memo

 
BILL NUMBER: S6791

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the labor law, in relation to employer contributions to
the unemployment insurance fund

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation seeks to adjust the unemployment insurance tax rate
schedule for the 2022,2023, and 2024 fiscal years to help reduce an
employer's tax obligation to replenish the Unemployment Insurance gener-
al account balance.

 
SUMMARY OF SPECIFIC PROVISIONS:

Subdivision 3-a. (a):  For the 2022 fiscal year, the statutory employer
contribution rate would be determined by size of index column headed at
2.5 percent but less than 3 percent and the employer's respective nega-
tive or positive account percentage, unless the actual size of the index

fund column would result in a lower overall rate.

Subdivision 3-a. (b): For the 2023 fiscal year, the statutory employer
contribution rate would be determined by size of index column headed at
2 percent but less than 2.5 percent and the employer's respective nega-
tive or positive account percentage, unless the actual size of the index
fund column would result in a lower overall rate.

Subdivision 3-a. (c): For the 2024 fiscal year, the statutory employer
contribution rate would be determined by size of index column headed at
1.5 percent but less than 2 percent and the employer's respective nega-
tive or positive account percentage, unless the actual size of the index
fund column would result in a lower overall rate.

 
JUSTIFICATION:

Unemployment insurance rates are, in part, determined by the balance of
the trust fund and contribution rates are established in a set rate
table. The rate table determines an employer's tax obligation based on
percentages related to the overall size of the fund index and an employ-
er's positive or negative account balance. These rates are established
in statute and require legislative action to adjust employers' unemploy-
ment tax obligations.  The 2021 employer contribution rate is assessed
in the size of fund index column of less than 0 percent, the highest
possible rate column.

Due to the COVID-19 pandemic and its impact on businesses in New York
unemployment insurance premiums are sky rocking for employers.  Earlier
this year legislation was signed into law to prohibit employer's experi-
ence ratings from being impacted as a result of COVID-19 related unem-
ployment. While incredibly critical, this was only part of the solution
to assist New York businesses.

This legislation which is patterned after legislation that has become
law in New Jersey would adjust New York's unemployment insurance employ-
er contribution rate, which allows New York to begin replenishing the UI
trust fund without overburdening businesses with high UI tax bills as
they recover from the pandemic. Without legislative action, New York's
businesses are paying the highest allowable rate determined in the
employer contribution rate table. As long as New York's UI trust fund
has a negative balance, employers will continue to pay the highest
allowable rate.  This legislation temporarily moves employers into a
different rate column resulting in a lower tax rate than currently set
in statute.  The tax rate schedule steps up in 2023 and 2024 as busi-
nesses may be in a better position to absorb higher UI tax bills.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To Be Determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S6791 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6791
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2021
                                ___________
 
 Introduced  by  Sens.  KAPLAN, COONEY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to employer contributions  to
   the unemployment insurance fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 581-a of the labor law is amended by adding  a  new
 subdivision 3-a to read as follows:
   3-A. (A) NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED EIGHT-
 Y-ONE  OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE
 OF THE FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER  IN
 THE TWO THOUSAND TWENTY-TWO FISCAL YEAR SHALL BE THE PERCENTAGE SHOWN IN
 THE  COLUMN  HEADED  BY  THE  SIZE OF THE FUND INDEX AT TWO AND ONE-HALF
 PERCENT BUT LESS THAN THREE PERCENT AND ON THE SAME LINE WITH HIS OR HER
 NEGATIVE OR POSITIVE EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO  SUBDIVI-
 SION  TWO OF SECTION FIVE HUNDRED EIGHTY-ONE OF THIS TITLE, UNLESS USING
 THE ACTUAL SIZE OF THE FUND INDEX  WOULD  RESULT  IN  A  LOWER  RATE  OF
 CONTRIBUTION  FOR  AN  EMPLOYER,  IN  WHICH  CASE SUCH EMPLOYER SHALL BE
 LIABLE FOR SUCH LOWER RATE OF CONTRIBUTION.
   (B) NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED  EIGHTY-ONE
 OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE OF THE
 FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER IN THE TWO
 THOUSAND  TWENTY-THREE  FISCAL YEAR SHALL BE THE PERCENTAGE SHOWN IN THE
 COLUMN HEADED BY THE SIZE OF THE FUND INDEX AT TWO PERCENT BUT LESS THAN
 TWO AND ONE-HALF PERCENT AND ON THE SAME LINE WITH HIS OR  HER  NEGATIVE
 OR POSITIVE EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO SUBDIVISION TWO OF
 SECTION  FIVE  HUNDRED EIGHTY-ONE OF THIS TITLE, UNLESS USING THE ACTUAL
 SIZE OF THE FUND INDEX WOULD RESULT IN A LOWER RATE OF CONTRIBUTION  FOR
 AN  EMPLOYER, IN WHICH CASE SUCH EMPLOYER SHALL BE LIABLE FOR SUCH LOWER
 RATE OF CONTRIBUTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10865-01-1

 S. 6791                             2
 
   (C) NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED  EIGHTY-ONE
 OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE OF THE
 FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER IN THE TWO
 THOUSAND  TWENTY-FOUR  FISCAL  YEAR SHALL BE THE PERCENTAGE SHOWN IN THE
 COLUMN  HEADED BY THE SIZE OF THE FUND INDEX AT ONE AND ONE-HALF PERCENT
 BUT LESS THAN TWO PERCENT AND ON THE SAME LINE WITH HIS OR HER  NEGATIVE
 OR POSITIVE EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO SUBDIVISION TWO OF
 SECTION  FIVE  HUNDRED EIGHTY-ONE OF THIS TITLE, UNLESS USING THE ACTUAL
 SIZE OF THE FUND INDEX WOULD RESULT IN A LOWER RATE OF CONTRIBUTION  FOR
 AN  EMPLOYER, IN WHICH CASE SUCH EMPLOYER SHALL BE LIABLE FOR SUCH LOWER
 RATE OF CONTRIBUTION.
   § 2. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S6791A (ACTIVE) - Details

See Assembly Version of this Bill:: A7788
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §581-a, Lab L

S6791A (ACTIVE) - Summary

S6791A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S6791A

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the labor law, in relation to employer contributions to
the unemployment insurance fund and the unemployment insurance maximum
benefit rate

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation seeks to adjust the unemployment insurance tax rate
schedule for the 2022 and 2023 fiscal years to help reduce an employer's
tax obligation as well as to increase the weekly maximum unemployment
benefit in 2022 and 2023.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of this bill would statutorily amend the unemployment insur-
ance tax rate as follows: For the 2022 fiscal year, the statutory
employer contribution rate would be determined by size of index column
headed at 2.5 percent but less than 3 percent and the employer's respec-

tive negative or positive account percentage, unless the actual size of
the index fund column would result in a lower overall rate. For the 2023
fiscal year, the statutory employer contribution rate would be deter-
mined by size of index column headed at 2 percent but less than 2.5
percent and the employer's respective negative or positive account
percentage, unless the actual size of the index fund column would result
in a lower overall rate.

Section 2 of this bill would temporarily pause the freeze of scheduled
increases to the unemployment insurance maximum benefit as follows:  the
maximum benefit shall be 40 percent of the average weekly wage until the
first Monday of October, 2022, when the maximum benefit amount shall be
42 percent of the average weekly wage.

Section 3 of this bill is the effective date.

 
JUSTIFICATION:

The Unemployment Insurance system is funded by a levy on employers based
on wages and their history of laying off employees, with collections
placed into a federally held trust fund. When the trust fund is depleted
due to an increase in unemployment, contribution rates levied on employ-
ers are subsequently increased to replenish the fund. However, given the
economic havoc caused by the COVID-19 epidemic, it would be imprudent to
increase contribution rates on employers that are continuing to strug-
gle. Therefore, this bill would delay increases for two years, after
which rates will be recalculated to address the deficit that exists at
that time. In addition to delaying increases in employer contributions,
this bill would allow the planned increase in unemployment benefits to
go into effect in 2022 and 2023. The previously adopted increase was
frozen because the trust fund ran a deficit when unemployment claims
increased as a result of the COVID-19 epidemic.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To Be Determined.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided that section 2 of this
act shall take effect on the thirtieth day after it shall have become a
law and be applicable to new claims filed on or after such date. Effec-
tive immediately, the addition, amendment and/or repeal of any rule or
regulation necessary for the implementation of this act on its effective
date are authorized to be made and completed on or before such effective
date.

S6791A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6791--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2021
                                ___________
 
 Introduced  by Sens. KAPLAN, BIAGGI, BROOKS, COONEY, GAUGHRAN, HARCKHAM,
   KAMINSKY, KENNEDY, MANNION, MARTUCCI, REICHLIN-MELNICK, THOMAS -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on  Labor  --  committee  discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the labor law, in relation to employer contributions  to
   the unemployment insurance fund and the unemployment insurance maximum
   benefit rate
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 581-a of the labor law is amended by adding  a  new
 subdivision 3-a to read as follows:
   3-A. (A) NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED EIGHT-
 Y-ONE  OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE
 OF THE FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER  IN
 THE TWO THOUSAND TWENTY-TWO FISCAL YEAR SHALL BE THE PERCENTAGE SHOWN IN
 THE  COLUMN  HEADED  BY  THE  SIZE OF THE FUND INDEX AT TWO AND ONE-HALF
 PERCENT BUT LESS THAN THREE PERCENT AND ON THE SAME LINE WITH HIS OR HER
 NEGATIVE OR POSITIVE EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO  SUBDIVI-
 SION  TWO OF SECTION FIVE HUNDRED EIGHTY-ONE OF THIS TITLE, UNLESS USING
 THE ACTUAL SIZE OF THE FUND INDEX  WOULD  RESULT  IN  A  LOWER  RATE  OF
 CONTRIBUTION  FOR  AN  EMPLOYER,  IN  WHICH  CASE SUCH EMPLOYER SHALL BE
 LIABLE FOR SUCH LOWER RATE OF CONTRIBUTION.
   (B) NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED  EIGHTY-ONE
 OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE OF THE
 FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER IN THE TWO
 THOUSAND  TWENTY-THREE  FISCAL YEAR SHALL BE THE PERCENTAGE SHOWN IN THE
 COLUMN HEADED BY THE SIZE OF THE FUND INDEX AT TWO PERCENT BUT LESS THAN
 TWO AND ONE-HALF PERCENT AND ON THE SAME LINE WITH HIS OR  HER  NEGATIVE
 OR POSITIVE EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO SUBDIVISION TWO OF
 SECTION  FIVE  HUNDRED EIGHTY-ONE OF THIS TITLE, UNLESS USING THE ACTUAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10865-02-1

 S. 6791--A                          2
 
 SIZE OF THE FUND INDEX WOULD RESULT IN A LOWER RATE OF CONTRIBUTION  FOR
 AN  EMPLOYER, IN WHICH CASE SUCH EMPLOYER SHALL BE LIABLE FOR SUCH LOWER
 RATE OF CONTRIBUTION.
   §  2.  Subdivision  5  of  section  590 of the labor law is amended by
 adding a new paragraph (b-1) to read as follows:
   (B-1) NOTWITHSTANDING PARAGRAPH (B) OF THIS SUBDIVISION,  THE  MAXIMUM
 BENEFIT  SHALL  BE  FORTY  PERCENT OF THE AVERAGE WEEKLY WAGE, UNTIL THE
 FIRST MONDAY OF OCTOBER, TWO THOUSAND TWENTY-TWO, WHEN THE MAXIMUM BENE-
 FIT AMOUNT SHALL BE FORTY-TWO PERCENT OF THE AVERAGE WEEKLY WAGE.
   § 3. This act shall take effect immediately; provided,  however,  that
 section  two of this act shall take effect on the thirtieth day after it
 shall have become a law and shall apply to new claims filed on or  after
 such  date. Effective immediately, the addition, amendment and/or repeal
 of any rule or regulation necessary for the implementation of  this  act
 on  its  effective  date  are  authorized to be made and completed on or
 before such effective date.

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The New York State Senate

senate Bill S6791

Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

Jan 25, 2022 - floor Vote

Floor Vote: Jan 25, 2022

Jan 10, 2022 - Labor committee Vote

Committee Vote: Jan 10, 2022

Bill Amendments

Co-Sponsors

S6791 - Details

S6791 - Summary

S6791 - Sponsor Memo

S6791 - Bill Text download pdf

Co-Sponsors

S6791A (ACTIVE) - Details

S6791A (ACTIVE) - Summary

S6791A (ACTIVE) - Sponsor Memo

S6791A (ACTIVE) - Bill Text download pdf

Comments

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senate Bill S6791

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Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

Jan 25, 2022 - floor Vote

Floor Vote: Jan 25, 2022

Jan 10, 2022 - Labor committee Vote

Committee Vote: Jan 10, 2022

Bill Amendments

Co-Sponsors

S6791 - Details

S6791 - Summary

S6791 - Sponsor Memo

S6791 - Bill Text download pdf

Co-Sponsors

S6791A (ACTIVE) - Details

S6791A (ACTIVE) - Summary

S6791A (ACTIVE) - Sponsor Memo

S6791A (ACTIVE) - Bill Text download pdf

Comments

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