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What You Need to Know about New York SUI Tax Rates for 2023 - 2024

Employers in New York are responsible for understanding the state unemployment insurance (SUI) rates for New York. Here is everything that employers need to know.

The New York State Department of Labor has set 2024 Unemployment Contributions Rates. Below are answers to some of the most common questions about 2024 unemployment contribution rates in New York, links to additional information, as well as what a New York payroll provider may need from you.

New York 2024 SUI Tax Rates

In 2024, the New York SUTA Wage Base is $12,500, up from $12,300 in 2023.

Regarding the New York SUI Contribution Rates for 2024, the lowest rate is 2.025%, the new employer rate is 4.025%, and the highest rate is 9.825%.

For 2024, the employer normal contribution rate is 3.4%.

New York SUI Tax Rates - Common Questions

The following questions are those that New York payroll companies commonly receive regarding unemployment tax contributions. 

What are unemployment contributions?

Contributions are paid by employers to the state Department of Labor and are used to fund unemployment claims made by employees. These contributions are automatically calculated with each payroll.

How EBC Helps Clients

For businesses that are on our New York payroll tax service, they are collected as part of your payroll debit, and then paid into the state each quarter with your NYS-45 tax return. They appear in payroll reports as “NY-SUI” and “NY Re-employment.”

How much are businesses required to contribute?

The amount employers contribute is determined by two factors: the assigned contribution rate, and the wage base, which is the portion of employee earnings subject to contributions.

2024 New York State SUI Tax Rate

For 2024, the New York wage base is $12,500, meaning contributions are due on the first $12,500 paid to each employee. If assigned a rate of 2.025%, then you would owe up to ~$253.13 (0.02025 x 12,500) per employee for the year.

2023 New York State SUI Tax Rate

In 2023, the New York wage base was $12,300, meaning contributions were due on the first $12,300 paid to each employee. If assigned a rate of 2.025%, then you would have owed up to ~$249 (2.025% x $12,300) per employee for the year.

Re-Employment Services Fund Assessment

In addition, all companies are subject to a Re-employment Services Fund assessment of 0.075% on the wage base, for up to an additional $9 per employee.

Reimburser Status

Certain companies such as religious organizations, educational institutions, and other non-profits may apply for “Reimburser” status, meaning they pay no contributions up front and instead must reimburse the state after the fact for any unemployment claims made against them.

How is my contribution rate determined?

Contribution rates are determined by several factors, including the overall balance of the unemployment system as a whole, and the number of unemployment claims filed by your employees in the prior calendar year.

If unemployment claims were made against you, you may see your rate increase in the following year. Employers can find contribution rate information on the New York DOL website.

Since 2014, the lowest rate that may be assigned is 2.025%, and the highest is 9.825%. New companies are automatically assigned a rate of 4.025%.

Questions on Rate Determination?

EBC does not have access to any unemployment claim information, so if you have questions about how your rate was calculated, you will need to contact the NY Department of Labor directly at 888-899-8810.

Does a high number of unemployment claims filed against my company in 2020 and 2021 (due to COVID-19) affect my rate?

No.

Per the Department of Labor, “No charges for benefit weeks after March 9, 2020, were used to calculate your 2021 unemployment contribution rate, nor are charges for benefit weeks payable in 2021 being used to calculate your rate for 2022.”

I’ve already run payrolls in the new year using my previous rate. What if my rate for the new year is different?

Once your new rate is entered into the payroll system, your prior processed payrolls for the new year will be re-calculated to determine your correct contributions due.

How EBC Helps Clients

If your rate decreases, then EBC will refund the excess amount that was collected with your payrolls directly to your bank account.

If your rate increases, there will be additional funds due which EBC will collect before filing your first quarter tax return. 

What if I have employees in other states?

Each state sets its own timeline for publishing rate notices. Many states sent out notices of their new rates in December.

Other states use a different calculation period; for example, New Jersey sets new rates effective July 1.

Each state also sets its own wage base. Details can be found in each state’s Department of Labor.

Do I need to do anything as an EBC HCM Client?

No.

You may send us a copy of your rate notice so that your account can be updated as early as possible, but EBC verifies unemployment rates for all our clients directly with each state’s Department of Labor before the first quarter tax filing. So all your rates will be automatically updated even if you don’t send us your notice.

If you have any questions or would like to send us your rate notice, please email 2022SUIRATENOTICE@ebchcm.com.

Where can I find more information?

To see your company’s unemployment account information and rate history, visit https://apps.labor.ny.gov/UIEHP/, and log in using your Federal Employer Identification Number (FEIN) and NY Employer Registration Number.

You may receive an error message during periods of high traffic, in which case you may have to try again later.

Get Help from EBC HCM

For more help with SUI Tax rates for New York, try contacting a New York payroll and HR provider

 

New York HR Services Comparison Chart

For more detailed information about unemployment contributions and how rates are calculated, visit https://dol.ny.gov/unemployment/employer-unemployment-insurance-information.