Deferral of Unemployment Insurance Contributions

Learn about which unemployment contributions may be deferred and find out which employers may be eligible for a deferral.

Which employers are eligible for a deferral?

Deferrals apply only to private Contributory employers and must be elected by employers. Third-Party Administrators (TPAs) using bulk payments cannot make the election on behalf of employers.

To qualify for a deferral, the employer must:

• Be up to date with all wage filings and have no outstanding contributions due.
• File the current quarter employment and wage detail report by the due date.
• Pay the contributions due for the current quarter by the due date (excludes the deferred amount).

 

Additional Resources

Learn about employer contributions to DUA

Which contributions may be deferred?

Eligible employers may defer 34% of regular unemployment insurance (UI) contributions owed in Quarter 1 and Quarter 2. The option to defer is available when the Quarter 1 and Quarter 2 filing periods are open, starting on January 1 and April 1, respectively.  All deferred amounts must be paid due by the Quarter 3 due date (October 31).

Deferrals do not apply to the following contributions:

• Workforce Training Fund (WTF)
• Employer Medical Assistance Contribution (EMAC)/Unemployment Health Insurance (UHI)
• COVID-19 Recovery Assessment Contributions

In order to activate the deferral, employers must pay 100% of WTF, COVID-19 Recovery Assessment Contributions, EMAC/UHI, and 66 % of regular UI Contributions by the current quarter due date.

What are the deferral periods?

• In the first quarter, employers may defer 34% of the UI contribution due.
• In the second quarter, employers may defer 34% of both the UI contribution due plus the previous deferral quarter amount.
• In the third quarter, employers cannot defer and must pay the total amount due, including previously deferred amounts. Interest will be charged from the original due date on any unpaid amount until paid in full.
• In the fourth quarter, employers cannot defer.

 

How to elect the deferral option

The option to request a payment deferral is only displayed if an employer has a current balance, the employer is contributory, and the date is prior to the Quarter 2 due date (July 31). After July 31, the option to request a deferral will no longer be available.

To request a deferral:

1. Log into Unemployment Services for Employers, then on the Account panel, click the Request a Payment Deferral. Note: If Request a Payment Deferral is not displayed, the employer is not eligible for a deferral.
2. Review the required deferral information, and then click Next. Note: If the employer is ineligible for one of the following reasons, a message is displayed indicating this, and the employer cannot proceed.
   • The employer is inactive.
   • The employer has overdue or assessed wage reports.
   • The employer has not yet reported wages for the quarter they are requesting the deferral.
   • The deferral is not requested by the quarter due date (April 31 for Quarter 1 and July 31 for Quarter 2).
   • The employer has outstanding debt from a prior quarter (e.g., The employer has not yet paid debt from Quarter 4 of the previous year, but they want to defer Quarter 1 of the current year).
   • An existing deferral has been requested but has not yet been processed.
3. Review the quarter balance, deferral quarters, and the amounts eligible to be deferred.
4. Click Next.
5. Review the summary, and then click Next.
6. Indicate whether the user wants to make a payment by bank account, credit card, or by mailing a paper check. For more information on how to make a payment review: Pay Unemployment Insurance Contributions to DUA  
7. After selecting the appropriate payment information, click Next.
8. Complete the payment fields, and then confirm the submission.