As a result of state reforms, employers across
\nNew York will realize an average savings of $1,200
\non their unemployment insurance costs this year,
\naccording to the governor’s office.<\/p>\n
State officials said the combination of an
\nimproved statewide economy and unemployment
\ninsurance reform measures signed by
\nGov. Andrew Cuomo in 2013 enabled the loan
\nto be repaid early, saving New York employers
\nan estimated $200 million in interest costs. The
\naverage employer will see an estimated reduction
\nof nearly $1,200, or $84 per employee.<\/p>\n
“In 2013, we put into place sweeping reforms
\nto fix New York’s broken unemployment insurance
\nsystem in a way to help lower costs for
\nemployers, offer greater benefits for workers,
\nand increase the integrity of the program,”
\nCuomo said in November. A lower assessment
\n“is a direct result of these badly needed changes
\nand one more way we are helping to move New
\nYork forward.”<\/p>\n
For years, Cuomo said, New York state’s unemployment
\ninsurance system was broken and
\ncould not withstand fluctuations in the economy
\nwithout borrowing from the federal government,
\nexposing employers to significant and unpredictable
\nliabilities. The system has been either
\ninsolvent or on the brink of insolvency for more
\nthan a decade.
\nHe said during the recession, the state’s
\nunemployment insurance trust fund did not
\nhave enough funds to pay for claims filed by
\nunemployed workers. New York, along with many
\nother states, was forced to borrow funds from the
\nfederal unemployment insurance trust fund to
\ncover the difference, and employers had to pay
\nback a $3.5 billion debt plus interest.<\/p>\n
In 2013, Cuomo signed major reforms into law.
\nThe law included a mechanism to pay back the
\nfederal loan three years ahead of schedule, resulting
\nin the announced lower costs. In addition, the
\nrisk of borrowing from the federal government
\nis now lower and payments for employers will be
\nmore predictable than the old system of yearly
\nsurcharges.<\/p>\n
Reform has also brought new fraud detection
\nand prevention measures to ensure that employers
\nare not charged for a former employee’s claim
\nwhen the loss of employment was the employee’s
\nfault.<\/p>\n
Cuomo said the other factor contributing to
\npaying off the federal loan early is the improved
\neconomic conditions of the past several years.
\nIn 2011, the state unemployment rate was 8.3
\npercent. In September, the unemployment rate
\nwas reported at 5.1 percent.<\/p>\n
According to the governor’s office, New York’s
\neconomy has added 711,400 private sector jobs
\nand experienced employment growth in 49 of
\nthe past 57 months.<\/p>\n
At the height of the recession in 2009, the state
\npaid out of the trust fund $5.1 billion in unemployment
\ninsurance benefits, Cuomo said. Benefit
\npayments in 2015 are estimated to be $2.4 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
As a result of state reforms, employers across New York will realize an average savings of $1,200 on their unemployment insurance costs this year, according to the governor’s office. State officials said the combination of an improved statewide economy…<\/p>\n","protected":false},"author":86,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[66],"class_list":["post-18442","post","type-post","status-publish","format-standard","hentry","category-business-news","tag-business-news"],"yoast_head":"\r\n