Interest assessment surcharge

Official source

When a national recession occurs, states may have to borrow money from the federal government to meet UI benefit obligations. When regular employer UI contributions are insufficient to repay the federal loan in time, the law requires the Commissioner of Labor to levy an interest assessment surcharge (IAS) at a rate sufficient to pay interest due. This situation occurred as a result of the COVID-19 pandemic, with an IAS required beginning in 2022. Unless the federal government chooses to abate all or part of the interest incurred, businesses will be required to make IAS payments each year until all interest has been fully paid.

loading…

Interest assessment surcharge

Official source

When a national recession occurs, states may have to borrow money from the federal government to meet UI benefit obligations. When regular employer UI contributions are insufficient to repay the federal loan in time, the law requires the Commissioner of Labor to levy an interest assessment surcharge (IAS) at a rate sufficient to pay interest due. This situation occurred as a result of the COVID-19 pandemic, with an IAS required beginning in 2022. Unless the federal government chooses to abate all or part of the interest incurred, businesses will be required to make IAS payments each year until all interest has been fully paid.