The New York Department of Labor (Agency) will continue to impose the Interest Assessment Surcharge (IAS) as a way to address the remaining unemployment insurance trust fund deficit resulting from the pandemic. The surcharge is being collected so that the state can pay the interest on a loan that was taken from the federal government during the pandemic to fund the unemployment insurance fund. Due to the high number of unemployment insurance claims submitted, the state did not have sufficient funds to cover the costs.
Starting mid-June, the agency will be sending IAS notices using the employer address they have on record. The current rate is .18% of your taxable wages paid between 10/1/21 and 9/30/22, but the rate could vary from year to year. Please note this is not your SUI rate notice. This is a temporary annual assessment notice.
What do you need to do now?
ADP understands this is a new notice type for many clients. ADP is more than happy to help if you have any questions. If you have received the New York IAS notice here is what you need to do:
- If you would like ADP to pay this on your behalf, please forward the IAS notice to your Client Account Manager no later than 7/6/2023. Your Client Account Manager will upload this notice to Smart Compliance and ADP will submit the payment.
- If you do not forward the IAS notice to your Client Account Manager by 7/6/2023, ADP will not remit payment on your behalf, and you will be responsible for remitting this payment on your own.
- If you plan on paying the IAS on your own, please do not forward this notice to your Client Account Manager.
IAS notices are not typical, and like in this case, can have very short processing windows. It’s critical that if you want us to process this payment on your behalf, you must upload your notice timely and ensure you have the funds available to cover the payment.
Please note: ADP will not be responsible for any penalties, interest, rate increases, or any other consequences resulting from any deviations from the process and timing noted above.
Employer Next Steps
We have summarized key steps employers should take to comply with this notice.
- Determine if you want ADP to pay this on your behalf or if you plan on paying the IAS on your own
- If you have any questions regarding this e-Alert, please email us
This content is provided with the understanding that the Hilb Group is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice.