ny_sa_logo_290The New York Notice of Unemployment Tax Rates (Rate Notices) should be issued in late February or early March.   New York is by far the most difficult to evaluate and the best opportunity or group of opportunities to request.   New York provides employers with the option for a voluntary contribution, forming or adding to a joint account, a provision to write-off a portion of the negative reserve balance, a rate with allowing the improvement of the ratio by four brackets.  Some of these opportunities can be combined to maximize an employer’s savings.

The voluntary contribution and the joint account option are left up to the employer to determine the profitability.   Employers are allowed to buy down their rate (termed a voluntary contribution).  The opportunity is evaluated based on whether the savings exceeds the amount of the voluntary contribution.  The joint account option allows employers with multiple accounts to combine them for rating purposes.    An employer can have more than one joint account group in New York.   Each grouping should be reviewed separately to determine which joint account group, if any, is the most lucrative.  The voluntary contribution option can be evaluated for each joint account grouping.

To avoid a negative write off, an employer has the option to pay an amount requested by the state.  If the amount requested is not paid, the state will automatically write off a portion of the negative account balance. The employer will be assigned the maximum for three years.   In some cases, it is favorable to pay the amount being written off by the state to obtain a more favorable rate for the following year.   In other instances, the maximum rate for three years is more beneficial.

The final opportunity for an “Improved Rate” is driven by New York.  If an employer has a negative balance and their preceding payroll year wages are greater than or equal to 80% of the average taxable payroll, the state will issue a Rate Notice with a special paragraph stating that the reserve ratios have been improved by four percentage points.   The limitation on this by the state is that the employer’s normal rate cannot be less than 6.1%.

So how can an employer be sure they are taking the correct steps to obtain the most favorable opportunity for savings?   The Tax Analysts at Corporate Cost Control are ready to analyze all opportunities for savings.   In February, we will receive the transcripts for all New York employers who have our service.  The transcripts provide information that is not printed on the Rate Notice and a breakdown of the combined figures.  Each opportunity is evaluated separately and in conjunction with other opportunities.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

Featured Videos

View All Videos

Latest News

Close

Sales

Your Name:*

Title:

Company Name:*

Company Address:

Company City:

Company State:

Company Zip:

Number of Employees:

Your Email:*

Phone Number:*

Fax Number:

Check the boxes below if you wish to receive information on any of the following:

Unemployment Cost ControlTax Credits & Incentives (WOTC)Employment / Wage Verification

Your Message:

Employment & Income Verfication

Your Name:*

Title:

Company Name:*

Company Address:

Company City:

Company State:

Company Zip:

Number of Employees:

Your Email:*

Phone Number:*

Fax Number:

Your Message: