Overview
Businesses across New York will no longer be receiving annual Interest Assessment Surcharge (IAS) bills from the New York State Department of Labor (NYSDOL) thanks to Governor Kathy Hochul’s FY26 State Budget. The historic agreement allocates funding to pay off the Federal Unemployment Insurance Trust Fund (UITF) debt and associated interest.
This will put money back in the pockets of business owners by:
- Eliminating the Interest Assessment Surcharge for 2025 and beyond
- Decreasing the Unemployment Insurance (UI) contribution rates in 2026
- Removing additional federal tax liability related to the loan