New York: Changes to New York State Unemployment Insurance Law affects NY employers
A change in the Unemployment Insurance law that became effective on October 1, 2013, addresses employer response time to formal inquiries from the New York State Department of Labor. Failure to respond and provide supporting documentation within 10 calendar days to a notice of potential charges could result in charges to the employer’s account for overpayments which the employer will not be relieved of. The failure to respond truthfully could also result in additional penalties.
On January 1, 2014 additional changes took effect.
- The six lowest contribution rates for employers have been eliminated (employers who fall within these brackets must contact New York Department of Labor to obtain their new rate).
- Employer contributions are now due on the first $10,300 pf wages per employee, up from $8,500, in return increasing the tax contribution owed for employees whose annual earnings exceed $8,500. (increases will continue to occur each January 1st starting in 2015)
- Claimants have to earn 10 times their benefit rate to re-qualify for benefits after exhausting benefits or being disqualified for resigning without good cause, declining a job offer or misconduct
- Severance pay may affect benefit eligibility.
- If the claimant is collecting pension from an employer and the employer contributed to the pension, the claimant may have his or her weekly unemployment benefits reduced based on receipt of the pension benefits.
NYDOL is also rolling out SIDES (The State Information Data Exchange System), SIDES is a web based system that allows electronic transmission of information requests from UI agencies to employers and/or Third Party Administrators (TPAs), as well as transmission of replies containing the requested information back to the UI agencies in order to relieve some of the burden on employers. .