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May 1, 2020
2020-1184

New York will charge some COVID-19 UI benefits to employer accounts

In employer FAQs issued by the New York Department of Labor about COVID-19 unemployment insurance (UI) benefits, the Department indicates that, at this time, employer accounts will be charged for regular state UI benefits paid as a result of COVID-19 unless the federal government reimburses the state for those benefits.

The following other COVID-UI benefits will not be charged to employers' accounts in compliance with the CARES Act:

  • Benefits paid during the one-week waiting period that was waived (for benefits paid between April and December 2020)
  • Benefits paid under an approved shared-work plan (April 5, 2020 to December 31, 2020)
  • Up to 50% of benefits paid by reimbursing employers (March 13, 2020 through December 31, 2020)
  • The additional $600-per-week benefit (through July 31, 2020)
  • The additional 13 weeks of benefits (through December 31, 2020)

Ernst & Young LLP insights

Most states have confirmed they will not charge employers for regular UI benefits paid in connection with COVID-19 because under a Trump administration emergency order, states are to be reimbursed for these benefits provided they enter an agreement with the U.S. Department of Labor. (U.S. Department of Labor Program Letter, No. 10-20.)

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (peter.berard@ey.com)

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