Shared Work for Employers: Frequently Asked Questions
- Q: When will the Shared Work plan begin?
- Q: Once DOL has approved a Shared Work plan, can the employer change it?
- Q: Can an employer lay off some workers who were originally in the plan and still keep the remainder in the plan?
- Q: Once the Shared Work plan is in effect, can an employer hire a replacement for an employee who leaves to work for another employer?
- Q: If an employer chooses Shared Work, must it apply to the whole business or company?
- Q: Can a Shared Work plan include a unit that consists of one employee?
- Q: Can employees who normally work overtime receive Shared Work benefits for a reduction in their overtime hours?
- Q: What effect will Shared Work benefits have on an employer's unemployment insurance tax rate?
- Q: Does the employer need to specify which employees will take part in the Shared Work program?
- Q: Is an employer required to file reports while the Shared Work plan is in effect?
- Q: Can employees receive Shared Work benefits if their hours and wages are reduced less than 20% or more than 60%?
- Q: If the employer's Shared Work plan expires but the employees still work a reduced work schedule, can they still receive Shared Work benefits?
- Q: Are Shared Work benefits taxable?
- Q: Can people in the Shared Work program have income tax withheld from Shared Work benefits?
Q: When will the Shared Work plan begin?
A:
The plan begins on the later of:
- The date listed on the employer's application form
- The first Monday after we approve the plan
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Q: Once DOL has approved a Shared Work plan, can the employer change it?
A: Yes. An employer may:
- Change the percentage that the employees' hours are reduced
- Return the employees to full-time for a week or more
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Q: Can an employer lay off some workers who were originally in the plan and still keep the remainder in the plan?
A: Yes. Shared Work would still prevent the layoffs of the remaining employees, which is the program's intent, or you could reduce hours and wages of the employees further to avoid any layoffs.
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Q: Once the Shared Work plan is in effect, can an employer hire a replacement for an employee who leaves to work for another employer?
A:
Yes. The law only prohibits you from hiring more full-time or part-time employees to work in an affected unit. You can hire replacements for employees who leave the company while the plan is in effect.
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Q: If an employer chooses Shared Work, must it apply to the whole business or company?
A:
No, you can use Shared Work in one or more departments, shifts, or units. The plan gives you the flexibility to choose the areas involved. You must apply the reductions in hours and wages equally to all of the employees in the chosen unit or department. However, you may reduce the hours and wages of employees in different departments or units by different percentages, if specified in the plan.
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Q: Can a Shared Work plan include a unit that consists of one employee?
A:
Generally,to share the work the unit must have more than one person. The Shared Work Program is not intended to subsidize part-time employment. If you submit an application including a unit that consists of only one person, you must explain the circumstances. For example, explain whether the worker is affected because of reductions in another unit, or -- if there is only one person in the plan -- how they are sharing work.
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Q: Can employees who normally work overtime receive Shared Work benefits for a reduction in their overtime hours?
A:
No. Shared Work benefits are only for wages lost because of a reduction in the employee's normal, full-time regular hours. The Shared Work law defines full-time hours as at least 35 but not more than 40 hours per week.
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Q: What effect will Shared Work benefits have on an employer's unemployment insurance tax rate?
A:
Shared Work benefits will be charged against your UI experience rating account. Whether these are the same charges as those after a layoff will depend on each employer's situation. If you have a question about how Shared Work could affect your tax rate, call 518-457-5807.
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Q: Does the employer need to specify which employees will take part in the Shared Work program?
A: Yes. Your plan must include the following information for all participating employees:
- Names
- Social Security account numbers
- Normal full-time hours per week
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Q: Is an employer required to file reports while the Shared Work plan is in effect?
A:
Yes. You must complete part of each employee's bi-weekly Shared Work continued claim form. This is to make sure that each employee is paid the proper Shared Work benefit amount.
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Q: Can employees receive Shared Work benefits if their hours and wages are reduced less than 20% or more than 60%?
A:
No. However, those employees may be eligible to receive partial benefits under the regular unemployment insurance program.
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Q: If the employer's Shared Work plan expires but the employees still work a reduced work schedule, can they still receive Shared Work benefits?
A:
No. Shared Work benefits are only payable while the plan is in effect. You should make arrangements -- before the plan expiration date -- to apply for a new plan. This will prevent interruption of payments.
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Q: Are Shared Work benefits taxable?
A:
Yes. Any UI benefits, including Shared Work benefits, are subject to Federal, State, and Local income tax.
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Q: Can people in the Shared Work program have income tax withheld from Shared Work benefits?
A:
Yes. People in the Shared Work program can choose to have Federal and NYS withholding tax deducted from weekly Shared Work benefits.
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