Photo Courtesy of NYS Senate Media Services
“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,” Senate Majority Leader Stewart-Cousins said.
By Forum Staff
The State Senate Democratic Majority will advance legislation to freeze increases in unemployment insurance taxes for businesses across New York State for the 2022 and 2023 fiscal year, Democratic leaders announced Tuesday.
Additionally, the legislation will increase the maximum unemployment benefit for workers who have lost their jobs at no fault of their own. During the pandemic, unemployment claims have drastically increased as businesses struggled to keep their doors open.
“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 cannot 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.”
The bill is sponsored by State Sen. Anna Kaplan (D-Long Island), chairwoman of the Committee on Commerce, Economic Development and Small Business. It 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.
- 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 percent of the average weekly wage after enactment and to 42 percent of the average weekly wage in October 2022.
“As we continue to pull our way out of the pandemic this legislation will provide much needed relief to both employers as we enter tax season and workers collecting unemployment,” State Sen. James Sanders, Jr. (D-South Richmond Hill) said. “I am proud to be a co-sponsor of this bill and I am sure it will help many people in my district and across New York State.”
State Sen. John Liu (D-Bayside) added, “Increasing contribution rates on employers who are already struggling from the worst pandemic of our generation would inflict irreversible harm to the small businesses that are vital to New York’s economic recovery. By hitting the pause button on these potentially devastating increases, these businesses can focus on getting back on their feet, rather than being kicked while they’re down. Many thanks to Senator Kaplan and all co-sponsors of this legislation who are working to prioritize the survival of our business community.”
