The state of New York has announced the assessment of an Interest Assessment Surcharge (IAS) for 2011. The surcharge will be used to pay approximately $95 million in interest on loans to the federal government by September 30, 2011.
New York Must Pay Interest on More Than $3 Billion in Loans
Since 2009, New York State has borrowed over $3 billion from the federal Unemployment Insurance Trust Fund. New York is going to charge employers the interest on these loans and if Congress later decides to forgive the interest, New York plans to credit the employer’s account or refund the money paid.
IAS is 0.25% for 2011
The IAS rate is 0.25% for 2011. Each employer’s surcharge amount is determined by multiplying the total taxable wages in the most recently completed payroll year (October 1, 2009 through September 30, 2010) by the IAS rate. Based on a taxable wage base of $8,500, the maximum surcharge per employee should be $21.25.
Contact Vision Payroll Today
New York clients who have further questions on the IAS should contact Vision Payroll.