New York State Unemployment Insurance Legislative Update
As Industrial U.I. had previously advised our clients, in March of 2021 President Biden signed into law The American Rescue Plan Act, which included extending unemployment insurance relief at the federal level. The Federal Government extended its UI relief package to include relieving 75% of UI benefits charged to not-for-profit reimbursable employers through 9/6/21. NY State Commissioner of Labor Roberta Reardon issued an order in January 2021 advising employers that all UI benefits charged to for-profit employers will not impact future tax rate. The order also indicated that the remaining balance of benefits paid to employees of not-for-profit reimbursable employers that were not covered by federal relief programs, would be removed and instead charged to the general fund. At the time, this relief was scheduled to continue through 9/6/21 or the end of the pandemic, whichever was earlier.
New York State has now enacted legislative changes to Section 581-A(3) of the unemployment insurance law, and has extended relief of UI benefits for all employers through 12/31/21. This means that any benefits not covered by federal relief programs will be 100% covered by NYS. Benefits paid to individuals in New York beginning March 9, 2020 will not impact future tax rates of experience rated employers, and no UI reimbursable bills will be sent to not-for-profit benefit reimbursement employers as no monies will be due until next year.
Because claims are valid for one year from the date of filing, employers should remain aware that unchallenged claims filed over the next several months may result in benefits charged to their accounts next year, and should remain vigilant in order to avoid unwarranted charges to their accounts once the relief ends.