BCW among business groups pushing for passage of the Unemployment Trust Fund Accountability Act – Business Council of Westchester

The Westchester Business Council was one of 15 New York and California business organizations requesting support for HR3745 The Unemployment Trust Fund Accountability Act, introduced by New York Congressman Brandon Williams and California Congressman Darrell Issa. This federal legislation would make New York and California liable for their large outstanding balances to the Unemployment Trust Fund, the burden of which is borne by every company in those states.

The letter, which was sent to House Ways and Means Committee Chairman Jason Smith and House Ways and Means Committee Ranking Member Richard Neal, noted that companies have been forced to pay for New York’s large outstanding balances over the past two years. and California.

When a state takes an advance from the trust fund, it is responsible for paying it back. Employers in states with an outstanding balance of advances beginning January 1 of two or more consecutive years are subject to a 0.3%, or $21, increase in their Federal Unemployment Taxes Act (FUTA) taxes if all advances are not have been refunded before November 10 of the tax year, read the letter.

According to the letter, companies face a $21 tax increase per employee each year until advances are paid back. Both New York and California have already seen a $21 increase for the 2022 calendar year, and without action from the states, they will likely see another $21 increase for the 2023 calendar year.

The Unemployment Trust Fund Accountability Act requires any state with an outstanding balance of Unemployment Trust Fund advances in excess of $1 billion to submit a plan to the Department of Labor explaining how they plan to repay the advances.

The letter noted that New York and California currently have outstanding balances in excess of $1 billion. New York is $8.1 billion. California is $17.2 billion. So far New York and California have shown no inclination to address these balances. Congressmen Williams and Issas’ bill would provide much-needed accountability.

Signatories to the letter in addition to the BCW were: National Federation of Independent Business, California Business & Industrial Alliance, American Council of Engineering Companies of New York, Buffalo Niagara Partnership, Capital Region Chamber, Corning Area Chamber of Commerce, Cortland Area Chamber of Commerce, Food Industry Alliance of New York, Greater Binghamton Chamber of Commerce, Greater Utica Chamber of Commerce. New York Farm Bureau, Rome Chamber of Commerce and Wyoming County Chamber of Commerce.