New York – New York has issued their Interest Assessment Surcharge(IAS) to all Employers in order to continue paying of the Title XII Federal Loans that were taken as a result of the COVID-19 Pandemic.
The amount of the surcharge will be 0.18% of each employers 4th Quarter 2021 thru 3rd Quarter 2022 Taxable Wages.
This calculates out to an estimated maximum cost of $21.60 per employee.
The state has a recommended payment date of July 19th 2023. However, there is no penalty or interest for submitting the IAS payment at a later date.
FUTA UPDATE – 2023*
California and New York currently have outstanding FUTA Title XII Loans for 2023. Should the states fail to pay back the loans by November of 2023, employers will have to pay an additional 0.60% on employees reported in these states retroactively to January 1, 2023.
1. Employers would have until January 31, 2024 to pay the additional 0.60% on employees in these four states.
2. The Additional 0.60% would result in an estimated increase of $42 per employee for 2023 (0.60% * $7,000 FUTA Wage Base).
Total FUTA Rate would be 1.20% in these states for 2023. Virgin Islands is 4.50%
*Connecticut and Illinois both were able to pay back their loans during the 2023 year.