Minimum Wage Increase, Unemployment Insurance Update
State Senator Malcolm A. Smith has announced that New York’s minimum wage rate will increase from the current rate of $6 to $6.75 per hour. This change will take effect on January 1, 2006, and will increase again on January 1, 2007 to $7.15 an hour.
“Over the course of the next two years, these increases will make a tremendous difference in the lives of thousands of workers throughout the state,” said Senator Smith.
Employees can find updated information concerning the wage rate on the New York State Department of Labor’s website at www.labor.state. ny.us.
The Senator also offered some updated information on Unemployment Insurance in New York State.
Employers in New York State are required to pay unemployment insurance taxes at the State and Federal levels. The tax rate for each employer is determined by a number of factors and varies for each employer.
As New York’s economic conditions improve, the Department of Labor anticipates that continued or greater reductions in employers’ Federal Unemployment Tax Act (FUTA) tax credit will not be necessary. It is estimated that next year, eligible employers should be able to receive their full 5.4% FUTA tax credit.
“After the terrorist attacks on September 11, 2001, the Federal government advanced money to the state of New York so that its employers could meet their unemployment benefit obligations. Since this money has not been repaid within the given time frame, the employer’s FUTA tax credit will be reduced,” stated Senator Smith.