Senate Bill S4681

                                 
BILL NUMBER: S4681

SPONSOR: MURRAY
 
TITLE OF BILL:

An act to repeal section 581-d of the labor law, relating to the inter-
est assessment surcharge

 
PURPOSE:

To abolish the interest assessment surcharge on employers intending to
pay off state debt.

 
SUMMARY OF PROVISIONS:

Section One: Repeals Section 581-d of the Labor Law, which provides for
the interest assessment surcharge.

Section Two: Effective Date.

 
JUSTIFICATION:
              

In an effort to reduce the spread of the COVID-19 pandemic, New York
State mandated countless businesses to close or significantly reduce
their operations. Many businesses remain closed-some for good-or at
reduced operations. As a result, the unemployment rate and unemployment
claims skyrocketed during the pandemic, many businesses closed and those
still open struggle to stay afloat to keep what remaining employees they
still have. With inflation costs rising, the after effects of the
pandemic and impact of continuation of pandemic-related policies, like
this unemployment assessment surcharge, businesses continue to be
crushed.

The already high cost of doing business and burdensome mandates that
contributed to New York's inhospitable businesses climate, even prior to
the pandemic, are now exacerbated in an economy that is struggling to
recover.

As New York's employers continue to try to recover, it is essential that
New York moves to ensure businesses have the opportunity to thrive in
this challenging business climate. This will require lowering the cost
of doing business in the State, which can start with eliminating unnec-
essary taxes, fees and assessments on New York's businesses such as the
interest assessment surcharge.

The interest assessment surcharge was established to cover the costs of
interest due on advances from the federal unemployment account during
periods where interest accrues. However, this costly fee burdens New
York's employers and holds them responsible for the State's debt It is
simply unfair to think that, after all New Yorkers have already sacri-
ficed to reduce the spread of COVID-19, our businesses can cover the
interest on any loans the State takes to make these payments. The state
has not made any effort to allocate funds in the state budget such as
federal pandemic relief funds to pay off the outstanding UI debt so that
this onerous interest assessment surcharge can be ended.  Repealing the
interest assessment surcharge would provide a boost for local businesses
that need all the help they can get right now to stay open, and to help
our local economies bounce back. This legislation would repeal this

surcharge, and be a positive step in the State's economic recovery from
the devastating toll of the coronavirus pandemic.

 
LEGISLATIVE HISTORY:

S7999 - Referred to the Labor Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediate.