N.Y. Companies Hit with Charge for Fed Jobless Loans

July 25, 2011

New York businesses are being told they have to help pick up the tab for interest the state owes on federal unemployment insurance loans.

The state Department of Labor says the maximum payment will be $21.25 per employee, due by August 15.

The recession led New York and other states to borrow interest-free from the federal Unemployment Trust Fund to float their jobless programs. The labor department says New York borrowed $3 billion in 2009 and 2010 and $95 million in interest is due because Congress didn’t not extend the interest-free provision.

It says businesses will get a credit or refund of the “Interest Assessment Surcharge” if that provision is restored.

The surcharge is based on a percentage of total taxable wages paid between October 2009 and September 2010.

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