New York businesses are tasked with repaying federal loans
A report by Anne McCloy of ABC 13 WHAM found that New York businesses receive surtaxes from the New York State Department of Labor to pay off federal loans the state took out to cover unemployment benefits. he had to pay during the Covid-19 pandemic. .
The letter some companies have already received states that “Additional Assessment Interest (IAS), enacted by the New York State Legislature, assesses a temporary charge for businesses to ensure that the State has sufficient funds to pay the interest due.While the IAS rate will vary from year to year, the current rate is 0.23%.
McCloy’s report said more than 500,000 businesses in New York that pay unemployment insurance would receive a letter notifying them of the surtax. Companies must make payment by the end of September, although many have not even received the letter, which has come as a shock to those who have already received it.
The Department of Labor website says most companies will be charged $27.60 per employee. It also says New York has only repaid 11% of the $9.2 billion it borrowed to cover unemployment benefits during the pandemic and that businesses will be required to pay the surtax each year until the full loan is repaid.
Eileen LaCorte, president of LaCorte Companies Inc., said, “I was a bit shocked. Basically, we’re reimbursing the federal government for the state’s mismanagement of funds.”
LaCorte also said, “When I called, I said, ‘Well, that’s more money than expected,’ and she said, ‘Yeah, that’s basically an extra on your amount because that we borrowed from the federal government for unemployment benefits and we have to pay them back.”‘
CBS 6 reported that they reached out to Governor Kathy Hochul to find out why the state didn’t use federal relief money to cover some of the loan repayments and relieve businesses, but didn’t receive any. comment from his office.