Business

New York will continue to fully tax unemployment allowances, says Cuomo’s aide

New York will continue to fully tax unemployment benefits, despite a federal exemption for the first $ 10,200 received by some workers who lost their jobs last year due to a pandemic.

Governor Andrew M. Cuomo’s budget director, Robert Musica, said Wednesday that the state’s new spending plan for 2021-22 will not change the tax status of unemployment benefits, but the problem is budget negotiations. It emerged.

New York has been taxing unemployment checks for 50 years. The same is true for the federal government. However, in response to the massive COVID-related unemployment, Congress and President Joe Biden last month approved a $ 10,200 exemption for taxpayers with adjusted total income of less than $ 150,000 in 2020.

According to the Washington Tax Foundation think tank, 15 states and Washington, DC had similar exemptions as of March 29.

“There is no change in the taxation status of unemployment allowances,” Mujica said in a newsday question at a virtual press conference from Albany. “These benefits have been subject to state taxes for decades … that hasn’t changed,” he said.

Previously, legislatures and parliaments were introduced to establish a $ 10,200 exemption for unemployment allowances regardless of taxpayer income.

Babylon accountant Dan Martin said Wednesday that some customers wanted a state tax cut on unemployment benefits.

“It’s ironic that New York wants to fully tax money from legitimate citizens who had taxable wages, but wants to struggle to get unemployed,” Martin said. It was.

Still, Martin said that migrant workers living illegally here would soon get New York unemployment insurance without cash wages and tax withholding under a $ 2.1 billion program with a budget of 2021-22. We will collect it. ” He is a Republican running for Babylon Town overseer.

The state imposes a 5% tax on unemployment checks provided to migrant workers under the new Excluded Workers Fund. According to budgetary law, taxes can be $ 160 or $ 780, depending on the size of the one-time benefit.

Separately, the budget extends the Start-Up NY program’s “10-year tax-free” commitment to participants who have employees working from home to delay the spread of the coronavirus. They were responding to Cuomo’s orders.

Without budget changes, startup NY companies could be expelled from the program because employees would have to pay state income tax on 2020 wages and weren’t working in college campus offices or laboratories. There is sex.

Marc Alessi, CEO and co-founder of Synchro PET Inc, said: .. , A New York startup participant based at Stony Brook University.

Locally, 15 technology companies with about 40 workers are enrolled in the program. The program is run by Empire State Development, the state’s leading business support agency.

“We are happy to be able to provide a solution with a well-established budget,” said Eric Gartler, CEO of ESD.

Sign up for COVID-19 Text Alert newsday.com/text.

New York will continue to fully tax unemployment allowances, says Cuomo’s aide

Source link New York will continue to fully tax unemployment allowances, says Cuomo’s aide

Related Articles

Back to top button