1.      Upcoming and Important Tax Due Dates:

a.      8/1/22: Due date for the 2^nd Quarter filing of 2022 Payroll Tax Returns.

2.      Important message for employers who issue payroll:

a.      New York State and the Department of Labor are working to rapidly reduce its federal debt by reducing the principal balance both aggressively and intentionally. In fact, NYS DOL has paid back more than $1 billion, or 11%, of its $9.2 billion UI Trust Fund loan.

b.      While New York State prioritizes reducing its federal debt, State law requires contributing employers to pay an annual Interest Assessment Surcharge, or IAS, on the federal loan. Beginning in July 2022, employers who make unemployment insurance contributions will be notified of the 2022 IAS rate (.23%) along with information about how to pay this annual charge (about $27.60 per employee). Unless the Federal government chooses to abate all or part of the interest incurred or the principal balance amount is repaid with no more interest accrued, businesses will be required to make annual IAS payments until all interest has been fully paid off.

c.      NYS has already started sending out notices to many employers asking for the IAS, is not the tax preparer’s fault you are getting that notice, nor the third party payroll service provider but just the way NYS decided to impute the new tax upon us in the middle of a payroll filing period. If you did get a notice and payroll the 2^nd quarter of 2022 has already been filed with NYS, then you must pay the amount due on the notice via check. If your 2^nd quarter 2022 NYS-45 has not been filed as of 7/19/22, then your third party payroll provider or tax preparer can pay the IAS with the 2^nd quarter 2022 NYS-45.

d.      If you have paid the NYS IAS surcharge via check, please let your accountant know the amount paid, since it does affect your year-end 2022 filings.

Again, please do not be alarmed if you received a notice for the IAS surcharge, it is a new surcharge instilled by NYS.