If you are a New York business owner, you may have noticed a new charge on your unemployment insurance bill called the Interest Assessment Surcharge (IAS). The pandemic has caused a huge surge in unemployment claims in New York, draining the state’s trust fund balance and forcing it to borrow money from the federal government. To cover the interest payments, the state is imposing a temporary charge on businesses called the Interest Assessment Surcharge.

The IAS is calculated as a percentage of the taxable wages paid by employers. The rate may change from year to year depending on the state’s debt situation. For 2023, the IAS rate is 0.18%, which is lower than the 0.23% rate in 2022. The IAS will be collected until the state pays off its federal loan.

To learn more about the IAS, please click here.