Latest Updates: NY Interest Assessment Surcharge (IAS)

As a result of the mass unemployment that resulted from the COVID-19 pandemic, New York State borrowed funds from the federal government to maintain UI benefit payments to unemployed New Yorkers. While the state is working to pay down the amount that was borrowed, annual interest payments are assessed to all NY State employers who pay into the Unemployment Insurance Trust Fund. The amount assessed to employers varies by year based on the then current balance owed to the federal government for interest payments. Once NYS has fully paid off their balance the IAS will no longer be assessed to employers.

The New York State Department of Labor has started to send notices to all employers for the 2024 Interest Assessment Surcharge (IAS). These notices include the balance due which is calculated for 2024 as .12% of SUI subject wages for the period from the fourth quarter of 2022 through the third quarter of 2023. This year the rate was reduced from the 2023 IAS which was charged at .18%.

Because of the variability of the rate assessed each year, the potential for the federal government to waive these payments, and the eventual full repayment of the loan by NYS, these IAS charges are not included with normal payroll processing tax charges. 

GreenSlate will send clients invoices for the amount due to NYS for the 2024 IAS in the coming weeks. Should you receive a notice directly from NYS please let the GreenSlate team know by emailing a copy of the notice to operations@gslate.com. 

Last updated 6.20.24. This information in this communication is general in nature, and is not intended, nor should it be construed, as legal, accounting, tax or other professional advice rendered by GreenSlate, LLC. The reader should contact his or her attorney, CPA, or tax professional prior to taking any action based upon this information.