New York Retires $2 Billion Federal Unemployment Insurance Loan

Date: December 01, 2015

New York small business owners received an early Christmas present.

In November, Gov. Andrew Cuomo announced that the state paid off $2 billion in debt to the federal government in unemployment insurance loans used to prop up the state fund during the recession.

“In 2013, we put into place sweeping reforms to fix New York’s broken Unemployment Insurance system in a way to help lower costs for employers, offer greater benefits for workers, and increase the integrity of the program,” Cuomo said in a statement. “Today’s lower assessment is a direct result of these badly needed changes and one more way we are helping to move New York forward,” he said.

The good news for small business owners is that the associated surcharge to help pay for this loan will be gone in 2016, saving employers about $1,200 a year, or $84 an employee.

The bad news, according to NFIB/New York State Director Mike Durant? It will be erased by Cuomo’s push for a statewide minimum wage increase to $15 an hour.

Related Content: Small Business News | New York

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