What's happening
This bill updates employer unemployment insurance contribution rates and adds rules for when the fund index falls below 0.5 percent.
Why it matters
Directly adjusts employer unemployment insurance contribution rates. by introducing new, lower contribution rate brackets for employers with positive account percentages above 10.5%. This could reduce payroll costs for employers in these categories during periods when the unemployment trust fund is relatively healthy.
Implements a dynamic response to fund solvency. by specifying that if the fund index drops below 0.5 percent, the system will revert to the older, potentially higher rates from the 2013 law for the following year. This introduces a safeguard to help replenish the fund quickly in times of financial stress.
Creates incentives for employers. to maintain positive account percentages, as the amended rate table provides increasingly lower rates for higher positive percentages—potentially rewarding employers with stable employment records and fewer layoffs.
May impact the stability and sufficiency of the unemployment insurance trust fund. by allowing for lower employer contributions under certain conditions, which could benefit businesses but require careful monitoring to ensure adequate funding for unemployment benefits during downturns.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Adjust Unemployment Tax Rates
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Returned to senate
- Died in assembly
- Referred to labor
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.2193
- Referred to rules
Full text
6 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6777
2017-2018 Regular Sessions
IN SENATE
June 16, 2017
Introduced by Sen. AMEDORE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the labor law, in relation to certain employers unemployment insurance account contributions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2 of section 581 of the labor law, as amended by section 7 of part O of chapter 57 of the laws of 2013, is amended and a new paragraph (e) is added to read as follows:
(a) Each qualified employer's rate of contribution shall be the percentage shown in the column headed by the size of the fund index as of the computation date and on the same line with his or her negative or positive employer's account percentage, except that if within the three payroll years preceding the computation date any part of a negative balance has been transferred from any employer's account as a charge to the general account pursuant to the provisions of paragraph (e) of subdivision one of this section such employer's rate of contribution shall be the maximum contribution rate as shown in the column headed by the size of fund index;
Size of Fund Index Employer's Account Percentage Less 0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
Than but but but but but but but but but but or
0% less less less less less less less less less less more
than than than than than than than than than than
0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%
Negative
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11849-02-7
S. 6777 2
21.0% or more 8.90 8.70 8.50 8.30 8.10 7.30 6.90 6.50 6.20 6.10 6.00 5.90 20.5% or more but less than 21.0% 8.80 8.60 8.40 8.20 8.00 7.20 6.80 6.40 6.10 6.00 5.90 5.80 20.0% or more but less than 20.5% 8.70 8.50 8.30 8.10 7.90 7.10 6.70 6.30 6.00 5.90 5.80 5.70 19.5% or more but less than 20.0% 8.60 8.40 8.20 8.00 7.80 7.00 6.60 6.20 5.90 5.80 5.70 5.60 19.0% or more but less than 19.5% 8.50 8.30 8.10 7.90 7.70 6.90 6.50 6.10 5.80 5.70 5.60 5.50 18.5% or more but less than 19.0% 8.40 8.20 8.00 7.80 7.60 6.80 6.40 6.00 5.70 5.60 5.50 5.40 18.0% or more but less than 18.5% 8.30 8.10 7.90 7.70 7.50 6.70 6.30 5.90 5.60 5.50 5.40 5.30 17.5% or more but less than 18.0% 8.20 8.00 7.80 7.60 7.40 6.60 6.20 5.80 5.50 5.40 5.30 5.20 17.0% or more but less than 17.5% 8.10 7.90 7.70 7.50 7.30 6.50 6.10 5.70 5.40 5.30 5.20 5.10 16.5% or more but less than 17.0% 8.00 7.80 7.60 7.40 7.20 6.40 6.00 5.60 5.30 5.20 5.10 5.00 16.0% or more but less than 16.5% 7.90 7.70 7.50 7.30 7.10 6.30 5.90 5.50 5.20 5.10 5.00 4.90 15.5% or more but less than 16.0% 7.80 7.60 7.40 7.20 7.00 6.20 5.80 5.40 5.10 5.00 4.90 4.80 15.0% or more but less than 15.5% 7.70 7.50 7.30 7.10 6.90 6.10 5.70 5.30 5.00 4.90 4.80 4.70 14.5% or more but less than 15.0% 7.60 7.40 7.20 7.00 6.80 6.00 5.60 5.20 4.90 4.80 4.70 4.60 14.0% or more
S. 6777 3
but less than 14.5% 7.50 7.30 7.10 6.90 6.70 5.90 5.50 5.10 4.80 4.70 4.60 4.50 13.5% or more but less than 14.0% 7.40 7.20 7.00 6.80 6.60 5.80 5.40 5.00 4.70 4.60 4.50 4.40 13.0% or more but less than 13.5% 7.30 7.10 6.90 6.70 6.50 5.70 5.30 4.90 4.60 4.50 4.40 4.30 12.5% or more but less than 13.0% 7.20 7.00 6.80 6.60 6.40 5.60 5.20 4.80 4.50 4.40 4.30 4.20 12.0% or more but less than 12.5% 7.10 6.90 6.70 6.50 6.30 5.50 5.10 4.70 4.40 4.30 4.20 4.10 11.5% or more but less than 12.0% 7.00 6.80 6.60 6.40 6.20 5.40 5.00 4.60 4.30 4.20 4.10 4.00 11.0% or more but less than 11.5% 6.90 6.70 6.50 6.30 6.10 5.30 4.90 4.50 4.20 4.10 4.00 3.90 10.5% or more but less than 11.0% 6.80 6.60 6.40 6.20 6.00 5.20 4.80 4.40 4.10 4.00 3.90 3.80 10.0% or more but less than 10.5% 6.70 6.50 6.30 6.10 5.90 5.10 4.70 4.30 4.00 3.90 3.80 3.70 9.5% or more but less than 10.0% 6.60 6.40 6.20 6.00 5.80 5.00 4.60 4.20 3.90 3.80 3.70 3.60 9.0% or more but less than 9.5% 6.50 6.30 6.10 5.90 5.70 4.90 4.50 4.10 3.80 3.70 3.60 3.50 8.5% or more but less than 9.0% 6.40 6.20 6.00 5.80 5.60 4.80 4.40 4.00 3.70 3.60 3.50 3.40 8.0% or more but less than 8.5% 6.30 6.10 5.90 5.70 5.50 4.70 4.30 3.90 3.60 3.50 3.40 3.30 7.0% or more but less than 8.0% 6.20 6.00 5.80 5.60 5.40 4.60 4.20 3.80 3.50 3.40 3.30 3.20 6.0% or more
S. 6777 4
but less than 7.0% 6.10 5.90 5.70 5.50 5.30 4.50 4.10 3.70 3.40 3.30 3.20 3.10 5.0% or more but less than 6.0% 6.00 5.80 5.60 5.40 5.20 4.40 4.00 3.60 3.30 3.20 3.10 3.00 4.0% or more but less than 5.0% 5.90 5.70 5.50 5.30 5.10 4.30 3.90 3.50 3.20 3.10 3.00 2.90 3.0% or more but less than 4.0% 5.60 5.40 5.20 5.00 4.80 4.20 3.80 3.40 3.10 3.00 2.90 2.80 2.0% or more but less than 3.0% 5.50 5.30 5.10 4.90 4.70 4.10 3.70 3.30 3.00 2.90 2.80 2.70 1.0% or more but less than 2.0% 5.40 5.20 5.00 4.80 4.60 4.00 3.60 3.20 2.90 2.80 2.70 2.60 Less than 1.0% 5.20 5.00 4.80 4.60 4.40 3.80 3.40 3.00 2.70 2.60 2.50 2.40
Positive
Less than 1.0% 4.10 3.90 3.70 3.50 3.30 2.90 2.50 2.10 1.90 1.80 1.70 1.60 1.0% or more but less than 2.0% 4.00 3.80 3.60 3.40 3.20 2.80 2.40 2.00 1.80 1.70 1.60 1.50 2.0% or more but less than 3.0% 3.90 3.70 3.50 3.30 3.10 2.70 2.30 1.90 1.70 1.60 1.50 1.40 3.0% or more but less than 4.0% 3.80 3.60 3.40 3.20 3.00 2.60 2.20 1.80 1.60 1.50 1.40 1.30 4.0% or more but less than 5.0% 3.70 3.50 3.30 3.10 2.90 2.50 2.10 1.70 1.50 1.40 1.30 1.20 5.0% or more but less than 5.5% 3.60 3.40 3.20 3.00 2.80 2.40 2.00 1.60 1.40 1.30 1.20 1.10 5.5% or more but less than 5.75% 3.50 3.30 3.10 2.90 2.70 2.30 1.90 1.50 1.30 1.20 1.10 1.00 5.75% or more but less
S. 6777 5
than 6.0% 3.40 3.20 3.00 2.80 2.60 2.20 1.80 1.40 1.20 1.10 1.00 0.90 6.0% or more but less than 6.25% 3.30 3.10 2.90 2.70 2.50 2.10 1.70 1.30 1.10 1.00 0.90 0.80 6.25% or more but less than 6.5% 3.20 3.00 2.80 2.60 2.40 2.00 1.60 1.20 1.00 0.90 0.80 0.70 6.5% or more but less than 6.75% 3.10 2.90 2.70 2.50 2.30 1.90 1.50 1.10 0.90 0.80 0.70 0.60 6.75% or more but less than 7.0% 3.00 2.80 2.60 2.40 2.20 1.80 1.40 1.00 0.80 0.70 0.60 0.50 7.0% or more but less than 7.25% 2.90 2.70 2.50 2.30 2.10 1.70 1.30 0.90 0.70 0.60 0.50 0.40 7.25% or more but less than 7.5% 2.80 2.60 2.40 2.20 2.00 1.60 1.20 0.80 0.60 0.50 0.40 0.30 7.5% or more but less than 7.75% 2.70 2.50 2.30 2.10 1.90 1.50 1.10 0.70 0.50 0.40 0.30 0.20 7.75% or more but less than 8.0% 2.60 2.40 2.20 2.00 1.80 1.40 1.00 0.60 0.40 0.30 0.20 0.10 8.0% or more but less than 8.25% 2.50 2.30 2.10 1.90 1.70 1.30 0.90 0.50 0.30 0.20 0.10 0.00 8.25% or more but less than 8.5% 2.40 2.20 2.00 1.80 1.60 1.20 0.80 0.40 0.20 0.10 0.00 0.00 8.5% or more but less than 8.75% 2.30 2.10 1.90 1.70 1.50 1.10 0.70 0.30 0.10 0.00 0.00 0.00 8.75% or more but less than 9.0% 2.20 2.00 1.80 1.60 1.40 1.00 0.60 0.20 0.00 0.00 0.00 0.00 9.0% or more but less than 9.25% 2.10 1.90 1.70 1.50 1.30 0.90 0.50 0.10 0.00 0.00 0.00 0.00 9.25% or more but less
S. 6777 6
than 9.5% 2.00 1.80 1.60 1.40 1.20 0.80 0.40 0.00 0.00 0.00 0.00 0.00 9.5% or more but less than 9.75% 1.90 1.70 1.50 1.30 1.10 0.70 0.30 0.00 0.00 0.00 0.00 0.00 9.75% or more but less than 10.0% 1.80 1.60 1.40 1.20 1.00 0.60 0.20 0.00 0.00 0.00 0.00 0.00 10.0% or more but less than 10.25% 1.70 1.50 1.30 1.10 0.90 0.50 0.10 0.00 0.00 0.00 0.00 0.00 10.25% or more but less than 10.5% 1.60 1.40 1.20 1.00 0.80 0.40 0.00 0.00 0.00 0.00 0.00 0.00 10.5% or more but less than 10.75% 1.50 1.30 1.10 0.90 0.70 0.30 0.00 0.00 0.00 0.00 0.00 0.00 10.75% or more but less than 11.0% 1.40 1.20 1.00 0.80 0.60 0.20 0.00 0.00 0.00 0.00 0.00 0.00 11.0% or more but less than 11.25% 1.30 1.10 0.90 0.70 0.50 0.10 0.00 0.00 0.00 0.00 0.00 0.00 11.25% or more but less than 11.5% 1.20 1.00 0.80 0.60 0.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.5% or more but less than 11.75% 1.10 0.90 0.70 0.50 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.75% or more but less than 12.0% 1.00 0.80 0.60 0.40 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.0% or more 0.90 0.70 0.50 0.30 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(e) When an employer's fund index remains above 0.5 percent the provisions of paragraph (a) of this subdivision, as amended by the chapter of the laws of 2017 which added this paragraph, shall apply. When an employer's fund index falls below 0.5 percent the provisions of paragraph (a) of this subdivision, as amended by section 7 of part O of chapter 57 of the laws of 2013, shall apply for the duration of the following year.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to certain employers unemployment insurance account contributions
Purpose
This bill reduces or eliminates the mandatory contributions employers must make to their UI employer account relative to those employers who have both the greatest employee retention rates and UI account surpluses in excess of 10.75%.
Summary of provisions
Section 1 of the bill amends the table in paragraph (a) of subdivision (2) in Section 581 of the labor law by adding columns to be used to calculate the contribution required of employers who have the greatest experience rating (lowest employee turnover).
Section 2 provides this act shall take effect immediately.
Justification
Employers maintain UI by making contributions into individual accounts specific to the employer. The amount of contribution is determined by using the table found in subdivision (a) in section 581. Rates are calculated through a product of an employers' "experience", which is measured by annual employee retention, and the overall size of the UI fund. Because a , claimants benefit is paid from an employers UI account, employers who have the highest rate of employee turnover (seasonal, for example) will have to contribute more to their particular UI account and thus pay higher rates.
This legislation would serve to reduce or eliminate the rates paid by employers with the lowest rate of turnover and a UI account balance surplus in excess of 10.75% above the amount required. Being that such employers rarely pay UI benefits, there is little sense in requiring their UI account balances to continue to grow. Further, the addition of these columns to the table in subdivision (a) will not impact any other employers UI rates.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.