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New York Unemployment Insurance Posters

August 25th, 2006 Posted by Emily

According to New York Unemployment Insurance posters, Unemployment Insurance is temporary income for eligible workers who become unemployed through no fault of their own and who are ready, willing, able to work and have sufficient work and wages in covered employment. In New York State, the money for unemployment insurance benefits comes from taxes paid by employers. No deductions are ever made from a worker’s paycheck for unemployment insurance and employees are made aware of this provision by reading New York Unemployment Insurance posters. It is the Department of Labor that determines whether an unemployed worker qualifies for unemployment.

Due to increased manipulation of the UI system by employers, the SUTA Dumping Prevention Act of 2004 was signed by President Bush in August of 2004. In order for New York to conform to the requirements of this act, legislation effective January 1, 2006, was recently enacted that prohibits the practice of SUTA dumping. Employers and financial advisors engage in SUTA dumping when they attempt to manipulate state experience rating systems in order to obtain a lower tax rate than their unemployment experience would otherwise allow.

SUTA dumping is present when a business attempts to transfer to another employer, where there is at least 10 percent common ownership, management, or control of the two employers, some or all of its workforce, payroll, or both, in order to reduce unemployment liabilities by obtaining a lower rate of contributions. SUTA dumping also occurs when a person who is not liable for contributions at the time he or she acquires a business of an employer is found to have acquired the business solely or primarily for the purpose of obtaining a lower rate.

A penalty is assessed if a violation of the statute is determined to have occurred. The penalty will be 10 percent of the employer’s taxable wages in the last completed payroll year, or $10,000, whichever is greater. An individual who knowingly advises another individual to violate or attempt to violate the statute is subject to a civil penalty of $10,000. In addition to these penalties, any violation of the statute constitutes a Class E felony punishable by imprisonment.

It is mandatory to post the labor information regarding unemployment insurance found on the New York Unemployment Insurance posters.