Important information for all NY employers and producers: The state of New York has released changes to the State Unemployment Insurance rates for New York employers in 2021.
These updates include an increase to the standard rate for new employers and raise the maximum rate for existing employers. The increased rates are retroactive to January 1st, 2021.
For new employers: The standard rate is now 4.1%. This is composed of the normal contribution rate of 3.4%, a subsidiary rate of 0.625%, and a Re-employment Services Fund rate of 0.075%.
For existing employers: Existing employers are charged an experience rate, which is determined annually based on their prior employment and unemployment experience. These rates range from 2.1% to 9.9% with the subsidiary rate of 0.625%, and a Re-employment Services Fund rate of 0.075% included. This is a significant increase from the 2020 highest rate of 7.9%.
This increase is based on the Size of Fund Index, which considers the conditions of the NY state Unemployment Insurance fund and applies the rate table to be used for the year. When there is less money in the fund, a higher rate table is used until the fund balance increases.
Since these rates are retroactive to January 1, 2021, this unexpected increase will need to be incorporated by projects already in production. NY producers should prepare for increased costs for shows already in production and make sure to increase their budgeted SUI rates for upcoming projects.
Additional Information and Resources:
Last updated 3.24.21. 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.