NOTE: The Unemployment Insurance Newsletter will be moving to Wednesdays starting next week.
SHIELD RELEASE – Minor Enhancements
A new version of SHIELD has been released and while this release does not include any new functionality, we have made some adjustments to existing functionality based on user feedback.
- We received a number of requests to increase the font size in SHIELD to make the system easier to read. If you want or need to change the sizing in SHIELD, you can control the size of the screens to make them larger or smaller by zooming in or out using your browser settings.
- For our Tax Gateway users, we have added some informational notes to the screens for clarifications. For example, the voluntary contributions are now color-coded (green for profitable, red for unprofitable) to make the opportunities for tax saving stand out.
CONNECTICUT – Second Quarter Tax Filing Deadline Extended
Connecticut Department of Labor has announced that the second quarter 2022 tax and wage report filing deadline has been extended to August 31, 2022. This deadline has been extended to give employers and their tax filing vendors additional time to establish new ReEmployCT accounts and upload the documents and reports into the new ReEmployCT system. Late fees and interest will not be assessed until September 1, 2022, and penalties will not be assessed until October 1, 2022. For more information about the extension, please visit https://portal.ct.gov/DOLUI/ReEmployctemployerinfo.
TENNESSEE – Rate Schedule for Second Half of 2022 Has Been Set
The balance of the TN Unemployment Trust Fund on June 30 and December 31 determines which of the six rate charts will be used to determine the employer tax rates for the following 6 months. TN announced that they will continue to use Table 6 which offers the lowest rate ranges of all the tables. We expect to receive the 2022/2023 rate notices shortly and expect the rates to range between 0.01% to 2.3% for employers with a positive reserve balance and 5% to 10% for employers with a negative reserve balance.
NEW YORK – Interest Assessment Surcharge due by August 15th
New York recently issued an Interest Assessment Surcharge of $27.14 per employee to cover the repayment of interest on loans borrowed to keep their state unemployment Trust Fund solvent. The employer assessment is due by August 15, 2022, and these notices have been sent to the appropriate tax contacts for your organization. If you have any questions or need any assistance, please reach out to your Thomas & Company Tax Analyst. We also suggest sending a copy of the assessment to your tax filing service.
Background: To date, the state of New York has been forced to borrow over $8 billion from the federal government to cover unemployment benefits. Interest began accruing on these funds in September of 2021 and must be repaid to the federal government. As of today, Congress has deferred three-fourths of the interest due for FY2021, but New York is still required to pay one-third of the remaining interest on or before September 30th for each of the three succeeding calendar years.
New York Unemployment Insurance Law provides for an Interest Assessment Surcharge to be paid by covered employers any time the state has to pay interest on its federal loans. Section 581-d of the New York Unemployment Insurance Code states that:
Each employer that is liable for contributions under this article shall pay an assessment to the commissioner at a rate established annually by the commissioner sufficient to pay interest due on advances from the federal unemployment account under Title XII of the Social Security Act (42 U.S. Sections 1321 to 1324) during any period that such interest will accrue.
For 2022, the Interest Assessment Surcharge (IAS) is set at 0.23% of each employer’s taxable wages for the one-year period ending September 30, 2021. Therefore, the maximum Assessment per employee will be $27.14. Unless Congress suspends interest payments on these loans, it is likely that the IAS will be in effect for the next several years until New York’s UI Trust Fund becomes solvent.