Unemployment insurance reforms started in 2013 have resulted in additional savings for New York state employers in terms of their contributions, according to Gov. Andrew Cuomo.
Employers have already saved an estimated $200 million through the early repayment of federal debt with each saving, on average, an estimated total of $1,200 or $84 per employee, according to Cuomo. As a result, the unemployment insurance contribution rate schedules have been adjusted downward, further reducing costs and saving employers up to an additional $42.80 per employee.
Additionally, the state Unemployment Insurance Trust Fund, which pays out benefits to claimants and is funded by employer contributions, ended the year with a positive balance for the first time in six years.
“Our commitment to reducing the cost of doing business in New York is paying dividends in growing our economy,” said Cuomo. “The unemployment insurance reforms we put in place in 2013, coupled with record jobs growth and controlled government spending have resulted in year-over-year savings to businesses. Now, New York businesses can reinvest these savings into their operations and employees, further strengthening our economy.”
Unemployment Insurance contribution rates paid by employers are determined by their individual experience in the system and by the level of reserves in the Unemployment Insurance Trust Fund. Over the past five years, employers paid higher contribution rates because the Unemployment Insurance Trust Fund’s deficit and the Great Recession’s high unemployment rates, state officials said.
Now that reforms have made the fund more sustainable, employers whose use of the system has been consistent in recent years will be assigned a lower rate.
