Compliance updates, analysis, plus HR and payroll best practices from HR One
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| Sample rate notice |
Between January and March each year, employers receive their Unemployment Tax Rate Notice from the NYS Department of Labor. These letters outline your rate for 2025 based on various factors, including your overall number of claims the state ruled eligible and paid benefits from your account in the previous year, and how many weeks former employees collect benefits. These rates are retroactive back to January 1.
For HR One Clients Utilizing Our Unemployment Insurance Administration Service
HR One will review tax rates assigned by NYS Department of Labor to determine if a voluntary contribution is recommended to reduce tax rates for potential savings.
If there is a recommendation for a voluntary contribution clients will receive an email from our team.
For clients that do not receive an email it means HR One does not recommend a voluntary contribution for your organization. This could be that your tax rate is the lowest rate available (minimum rated) or that a voluntary contribution would not have monetary savings for your organization.
For HR One Payroll Clients
Our role as your payroll provider is to ensure that we have the proper amounts of tax to remit with your quarterly filing. If your rate decreased for the year, you would be owed a refund from us. If your rate increased, we would need to impound the difference in what was collected vs. what is owed so that we can properly file and pay your taxes. If there was no change to your rate, no adjustment will be needed.
As you receive these notices from the state, please forward them to Sara Huck in our office at shuck@peopletopayroll.com. We will complete these adjustments on or about March 27, and we will notify you of the amount to expect for refund/impound, depending on your specific situation.
If you have any questions, please contact our customer service team at (315) 252-9150.
Please keep in mind that these rate audits occur every year.
For All Employers
It’s essential to be familiar with your unemployment tax rate as it is a controllable business expense. Your rate increases or decreases based on the number of eligible/ineligible unemployment insurance claims that benefits were paid/not paid. You can reduce the number of eligible claims, AND the length of those eligible claims. You can reduce the number of eligible claims by implementing and following strong policies and procedures within your organization, particularly on corrective discipline and separation.
An employee who is terminated because they violated a policy or procedure is generally ineligible if you protest these claims and have appropriate documentation to demonstrate the employee was aware they could be terminated due to the final incident based on a prior warning.
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