N.Y. Faces Tax Hike Over $9 Billion Debt for Jobless Checks (1)

Sept. 9, 2021, 5:19 PM

Federal unemployment taxes on New York businesses are poised to increase to repay $9 billion borrowed from the U.S. government to cover a historic surge in jobless claims during the Covid-19 pandemic, state Comptroller Thomas DiNapoli said.

New York’s unemployment insurance trust fund was quickly depleted last year by a record wave of claims from laid-off workers in restaurants, hotels, retail shops and small businesses. That triggered a surge in payments, with the volume of regular state unemployment benefits rising to $6.5 billion at the end of the second quarter in 2020 from $530 million at the end of 2019. ...

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