Skip to Content
Author: The BCW

Leave a Comment

BCW Among Business Groups Urging Passage of Unemployment Trust Fund Accountability Act

The Business Council of Westchester was among 15 business organizations in New York and California requesting support of H.R.3745 — The Unemployment Trust Fund Accountability Act introduced by Congressman Brandon Williams of New York and Congressman Darrell Issa of California. This federal legislation would hold New York and California accountable for their large outstanding balances to the Unemployment Trust Fund, the burden of which is being shouldered by every business 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 for the last two years businesses have been forced to pay for New York and California’s large outstanding balances.

“When a state takes an advance from the Trust Fund, they are responsible for paying that back. Employers in states with an outstanding balance of advances at the beginning of 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 repaid before November 10 of the taxable year,” read the letter.

According to the letter, businesses face a tax increase of $21 per employee, every year until the advances are repaid. Both New York and California have already seen a $21 increase for Calendar Year 2022 and without action by the states, are likely to see another $21 increase on top of that for Calendar Year 2023.

The Unemployment Trust Fund Accountability Act requires any state with an outstanding balance of advances from the Unemployment Trust Fund 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 of more than $1 billion. New York’s is $8.1 billion. California’s is $17.2 billion. “So far New York and California have shown no inclination to address these balances. Congressmen Williams and Issa’s bill would provide much-needed accountability.”

Signing 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.

Similar News Items

It’s a whole new ballgame for BCW Member MGM Resorts International & Empire City Casino which this week announced a new partnership designating MGM Resorts as a “Proud Partner of the New York Yankees.” The two organizations will collaborate to deliver exclusive VIP experiences to MGM Rewards members and baseball fans, including the opportunity to […]

Read Article

Officials from the City of Yonkers, New York State, Westchester County, U.S. Department of Housing and Urban Development and the NYS Homes and Community Renewal joined this week with the Mulford Corporation on July 9 to celebrate the grand opening of La Mora Senior Housing, one of the few affordable housing projects in the nation […]

Read Article

The Business Council of Westchester’s Westchester Innovation Network (WIN) has facilitated an exciting new partnership between Laronix and the prestigious Burke Neurological Institute, based in White Plains. Laronix, a MedTech company with operations in Australia and Westchester, is collaborating with Burke Neurological Institute on a year-long study of its breakthrough Bionic Voice technology designed to […]

Read Article

Become A Member

Join the county’s largest and most influential business organization today.

JOIN NOW!
The Business Council of Westchester is committed to helping businesses market, learn, advocate, and grow. Over 80 events and programs are offered every year, giving our members ample opportunity to connect and meet with businesses representatives in the Westchester community and beyond.
Back to top