Form Nys-50 - Employer'S Guide To Unemployment Insurance, Wage Reporting, And Withholding Tax Page 14
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52Page 14 of 52 NYS-50 (10/11)
Refunds and credits
rating. Once a warrant is filed, the Department may proceed with active
collection. Active collection may involve: seizure of the employer’s bank
If an employer reports wages and pays unemployment insurance tax to a
accounts, property, inventory, accounts receivable, and/or any other
state other than New York and later finds that the tax should have been
asset. The Department may also refer the employer’s account to the
paid to New York, correcting adjustments may be made. Conversely,
NYS Tax Department for seizure of any tax refunds or contract payments
similar adjustments may be made when taxes are reported to New York
due the employer. Employers may also lose certain tax credits and
in error. An employer should contact the Department of Labor, Liability
licenses for failure to comply with the law.
and Determination Section to request corrections (see Unemployment
insurance issues — Where can I find the answers? on page 46).
Indian tribes who fail to make all required payments lose the right to
elect the benefit reimbursement option (below) and become liable under
Refund or credit for overpayment of unemployment insurance tax or
the Federal Unemployment Tax Act (FUTA). Failure to pay required
for interest or penalty erroneously paid may be obtained on application
contributions could result in termination of coverage and the employees
if made on or before the later of the following dates: one year after the
of the tribe not being covered for unemployment insurance.
payment was made, or three years and one month after the calendar
quarter during which remuneration was paid that formed the basis for the
Additional assessment for fraud
tax, interest, or penalty assessment erroneously made.
If an employer’s failure to comply with unemployment insurance
Benefit reimbursement option
reporting requirements is determined to be due to fraud with the intent
to avoid payment, a penalty of 50% of the total amount of the deficiency
Rather than paying the quarterly tax on their payrolls, nonprofit
may be assessed and collected in the same manner as if it were
organizations organized and operated exclusively for religious,
additional tax due. Criminal penalties may also be imposed.
charitable, scientific, literary, or educational purposes (those exempt
under section 501(c)(3) of the IRC), governmental entities, and Indian
Re-employment service fund
tribes have the option of reimbursing benefits paid to their former
employees and charged to their accounts.
In accordance with the unemployment insurance law, a special
re-employment service fund has been established to assist
A request to elect the reimbursement option must be submitted in writing
unemployment insurance claimants in finding work. The fund is used
to the Department of Labor before the beginning of the calendar year in
to provide unemployed workers with such services as job placement,
which it is to apply or within 30 days after the calendar quarter in which
resume preparation, and workshops to match job seekers with jobs.
the nonprofit organization, governmental entity, or Indian tribe became
Liable employers, excluding nonprofit, governmental, and Indian
liable under the unemployment insurance law. The request must be in
tribe employers who have elected the benefit reimbursement option
writing and sent to the Department of Labor, Liability and Determination
(see Benefit reimbursement option below), are required to pay a
Section (see Unemployment insurance issues — Where can I find the
re-employment tax of 0.075% (.00075) on their taxable payroll in addition
answers? on page 46). Indian tribes requesting the reimbursement option
to regular unemployment insurance taxes. This tax is reportable and
will be required to post a surety bond if their request is approved. Failure
payable on Form NYS-45. Re-employment service fund contributions
to submit a timely request can only be excused if an employer can show
cannot be used as a credit against taxes due under the Federal
good cause for the delay.
Unemployment Tax Act (FUTA), nor will they be used in the computation
of the employer’s tax rate.
Following the end of each calendar quarter, a nonprofit organization,
governmental entity, or Indian tribe that has elected this benefit
Interest assessment surcharge
reimbursement option is billed for the total benefits charged. They are
also required to complete Form NYS-45 and Form NYS-45-ATT, if
Under slow economic conditions, New York, as well as many other
applicable, to include: number of employees; total remuneration (Part A
states, may borrow money from the federal government in order to
line 1); Parts B and C; and signature.
meet unemployment insurance (UI) benefit obligations. At times, the
revenues from the quarterly UI taxes paid by employers to New York
Employers electing the benefit reimbursement option are not required to
State are insufficient to repay the federal loan in time to avoid interest
contribute to the re-employment service fund.
charges (interest due to the federal government is due annually by
For more details about the benefit reimbursement option, see pamphlet
September 30). To address this situation and to protect employers and
I
A 318.13, Benefit Reimbursement, or if an Indian tribe, see pamphlet
New York State’s UI program from possible negative consequences,
I
A 318 IT, Unemployment Insurance Coverage for Indian Tribes.
legislation has been enacted to provide sufficient funds to pay interest to
the federal government when it is owed.
The relationship of New York State and federal
The Commissioner of Labor is required to levy an interest assessment
unemployment insurance reporting
surcharge on unemployment insurance taxable wages at an annual rate
The annual total taxable New York State wages reportable for Federal
sufficient to produce revenues needed to pay interest due on federal
Unemployment Tax Act (FUTA) purposes on Form 940 should be
loans. This rate, to be computed annually, is to be applied to taxable
reconciled to the taxable wages reported to the Unemployment
wages paid in the most recently completed payroll year (October -
Insurance Division for the year on Form NYS-45 (the total of wages
September) as of the computation date (December 31). When it is
reported each quarter on line 3 of Form NYS-45). Employers should
determined that interest will not be due and the assessment is no
take time to review these figures and resolve any discrepancies before
longer necessary, any amounts remaining will be credited to employer’s
submitting the federal reports that are due January 31 each year. This
accounts on a proportional basis for experience rating purposes.
will help ensure that proper credit is applied to the FUTA tax due and
Annual notices are sent informing employers of their interest assessment
may prevent future questions resulting from any apparent discrepancy
surcharge amount due. If you have any questions regarding this
between the amount of taxable wages reported to each agency for the
surcharge, please call 1 888 899-8810.
year.
An employer subject to FUTA will obtain a 5.4% credit against the federal
Deductions from an employee’s pay
tax if the state tax is paid in full by January 31 following the close of the
The law expressly prohibits an employer from making a deduction from
tax year. If the state tax is paid after January 31, the credit is limited to
the earnings of an employee to pay any portion of the unemployment
90% of the amount which would have been allowable as a credit had the
insurance tax. An employer violating this prohibition is guilty of a
state tax been paid on time. Moreover, unless the state tax is paid, no
misdemeanor.
credit may be taken against the federal tax.
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