Today’s blog is about NYS and the notices employers are currently getting regarding unemployment expense surcharges and assessments.
Our unemployment system pays unemployed workers amounts that exceed the federal amounts paid.
There are in effect, NYS and federal unemployment monies transferred for one when collecting a check from NYS. NYS had to borrow money from the fed to afford the unemployment roles back in 2008.
Some time ago, NYS along with several other states, never paid the Fed back for money borrowed. From that year forward, all NYS businesses file the long form 940 instead of a 940EZ. Form 940EZ automatically gives you credit at 5.4% for unemployment taxes a business pays to NYS.
All states that don’t pay back the fed timely for borrowing money no longer get an automatic 5.4% credit. So businesses pay more unemployment taxes to the fed for their state not completing their financial obligations!
Today we find out NYS is short money again towards their own unemployment needs. So they are billing each business shy of $10 per employee to make up their short fall.
I hope you can all appreciate the NYS politicians we are electing. They borrow and don’t pay back monies promised, and they do not live up to the budgets they create: outcome – businesses pay for their shortfalls and shortsightedness.
Contact our office if we can be of assistance.
Harlan S. Kahn CPA
Paris Accounting Corp