A bill meant to reduce the burden of unemployment insurance costs on businesses in New York state was advanced by lawmakers as officials contend with the continued economic fallout from the COVID-19 pandemic.

The bill, backed by Long Island Sen. Anna Kaplan, would freeze increases in unemployment insurance taxes that businesses pay for the 2022 and 2023 fiscal years. The measure addresses a previously planned tax hike that would take effect and increases the maximum unemployment benefit for workers who have lost their jobs by up to 10.5%.

The measure is meant to address the soaring cost of unemployment insurance for businesses ahead of the tax increase and as the pandemic has led to continued uncertainty for businesses.

“So many of our State's small businesses barely survived the challenges of the pandemic, and if we allow them to be hit with massive increases in their payroll taxes, many will be forced to close their doors for good," Kaplan said. "Our long-term economic recovery depends on the success of our small businesses, so I introduced legislation to give them a break by cutting the unemployment tax rate that they pay for each employee, and I’m leading the charge to replenish the State’s unemployment insurance trust fund with a significant allocation in the state budget."

The move was praised by business organizations on Tuesday as a needed step, especially for small businesses that addresses more than $9 billion in debt.

"This sensible unemployment insurance reform will help employers across New York save money at a time when they’re seeing rising costs across the board," said Zach Sampson, a spokesman for the pro-business group Upstate United. "We urge the members of the Assembly to take immediate action on this measure."