Empire State Today

New York's small businesses have faced significant challenges related to unemployment insurance (UI) debt accumulated during the pandemic. Businesses were forced into shutdowns and, even when they reopened, faced restrictions impacting their profitability. Consequently, New York borrowed nearly $13 billion from the federal government to meet UI claims.

Fast forward to 2025, the state owes over $6 billion but has not made efforts to repay this debt. As a result, New York's businesses are burdened with "the highest possible state UI taxes, special assessments, and higher federal UI taxes," and are paying "an extra $400 per employee per year," states Ashley Ranslow, New York State director at the National Federation of Independent Business (NFIB). She asserts that small businesses are bearing these costs because they adhered to state-imposed regulations.

The New York State Assembly is working towards addressing this issue. Their plan to repay the state's debt and restore the UI trust fund is projected to save small businesses thousands annually. Ranslow notes that the Assembly's approach is in line with over "35 other states that used federal pandemic funds to restore their UI systems."

The persistent UI debt issue, if unresolved, poses long-term challenges. Ranslow emphasizes that New York cannot continue delaying solutions, especially as the possibility of future economic downturns looms. "Small businesses cannot afford a decade or more of high UI taxes; it is unsustainable and will have an irreversible impact on Main Street."

Small businesses are crucial to New York's economy, contributing significantly to employment and community vitality. Ranslow stresses that high UI taxes hinder business creation and operation, a concern that needs to be addressed in state budget negotiations. The Assembly's proposal, according to Ranslow, is indispensable for "Main Street" and the broader economic stability of New York.

Ashley Ranslow is the New York State director of NFIB, an organization that represents over 11,000 small businesses across the state.