The New York State Senate passed legislation that adjusts the unemployment insurance tax rate schedule for the 2022 and 2023 fiscal years to reduce an employer's tax obligation and to increase the weekly maximum unemployment benefit for workers in 2022 and 2023.
“Since the start of this pandemic, the Senate Majority has taken action to help our business community survive and recover from this pandemic. Today we are taking urgent action to delay an increase in unemployment insurance taxes because we know businesses can not take on this burden as they struggle just to keep their doors open,” Senate Majority Leader Andrea Stewart-Cousins said. “This pandemic has created many unforeseen fiscal challenges, but this legislation takes action to give businesses across New York State time to get back on their feet, as well as still support workers across New York State who lost their jobs. I want to thank Senator Anna Kaplan for carrying this bill to the floor and taking another step to help our businesses recover and assist New York’s workforce.”
Chair of the Committee on Commerce, Economic Development and Small Business and bill sponsor, Senator Anna Kaplan said, “So many of our State's small businesses barely survived the challenges of the pandemic, and if we allow them to be hit with massive increases in their payroll taxes, many will be forced to close their doors for good. Our long-term economic recovery depends on the success of our small businesses, so I introduced legislation to give them a break by cutting the unemployment tax rate that they pay for each employee, and I’m leading the charge to replenish the State’s unemployment insurance trust fund with a significant allocation in the State budget. At the same time, we can’t forget about workers who lost their jobs due to the pandemic and who rely on unemployment insurance benefits to make ends meet, so I’m proud that my legislation will deliver a meaningful increase in weekly benefits to help them during these challenging times. I’m grateful for Majority Leader Andrea-Stewart Cousins for bringing this legislation to the floor for a vote, and for her leadership to ensure that the Senate is always responsive to the needs of New York’s small business community.”
- 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 negative or positive account percentage.
- For the 2023 fiscal year, the statutory employer contribution rate would be determined by size of the index column headed at 2 percent but less than 2.5 percent and the employer's respective negative or positive account percentage.
- The weekly maximum unemployment benefit rises to 40% of the average weekly wage after enactment and to 42% of the average weekly wage in October 2022.