Benefit reimbursement option

Rather than paying the quarterly contributions on their payrolls, nonprofit organizations organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes [those exempt under IRC § 501(c)(3)], governmental entities, and Indian tribes have the option of reimbursing benefits paid to their former employees and charged to their accounts.

A request to elect the benefit reimbursement option must be submitted in writing to the Department of Labor before the beginning of the calendar year in which it is to apply or within 30 days after the calendar quarter in which the nonprofit organization, governmental entity, or Indian tribe became liable under the UI Law. The request must be in writing and sent to the Department of Labor, Liability and Determination Section (see Unemployment insurance issues – Where can I find the answers? ). Indian tribes requesting the benefit reimbursement option will be required to post a surety bond if their request is approved. Failure to submit a timely request can only be excused if an employer can show good cause for the delay.

Following the end of each calendar quarter, a nonprofit organization, governmental entity, or Indian tribe that has elected this benefit reimbursement option is billed for the total benefits charged. They are also required to complete Form NYS‑45 to include: number of employees; total remuneration (Part A line 1); Parts B and C; and signature.

Employers electing the benefit reimbursement option are not required to contribute to the re‑employment service fund.

For more details about the benefit reimbursement option, see pamphlet IA 318.13, Benefit Reimbursement, or if an Indian tribe, see pamphlet IA 318 IT, Unemployment Insurance Coverage for Indian Tribes .