New York Comptroller Reports on Unemployment Insurance Tax Increases

The New York state comptroller published a report finding that because “unprecedented numbers of workers” have lost their jobs since March 2020 because of COVID-19’s economic effects, the state’s unemployment trust fund account has been depleted from its January 1, 2020, balance of $2.65 billion; consequently, as of September 2, 2021, the state owes the federal government $9 billion, which has lead to unemployment insurance (UI) tax increases on employers to current rates between 2.1 percent and 9.9 percent of taxable payroll.

The report warns that without legislative action, federal UI rates will increase from 0.6 percent to 0.9 percent in 2022.

The comptroller also issued a press release summarizing the major findings of the report.