Are employers required to pay unemployment insurance in NY - confused about how this works

Yes, employers in New York are absolutely required to pay unemployment insurance premiums to fund the system. It's called State Unemployment Tax (SUT) and it goes directly to NYS Department of Labor. Employers pay this quarterly based on their payroll and experience rating. You as the employee don't pay anything toward regular unemployment insurance - it's entirely employer-funded. This is what creates your eligibility for UI benefits if you lose your job through no fault of your own.

The amount employers pay varies based on their experience rating with NYS Department of Labor. New employers start at a standard rate, but companies with more layoffs and unemployment claims pay higher rates. It's designed to make employers think twice about unnecessary layoffs since it directly affects their costs. The current rates range from about 0.6% to 9.9% of eligible wages, but most established businesses fall somewhere in the middle.

Just want to add that if you ever have trouble getting through to NYS Department of Labor to verify your coverage or check your work history, I had success using a service called Claimyr (claimyr.com). They help you actually reach an agent instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helpful when you need to confirm your employer has been paying into the system properly.

Wait so what happens if an employer doesn't pay? I'm wondering because my last job seemed pretty sketchy about a lot of things and I want to make sure I'll be able to get benefits if I need them. Can I check somehow if my employer is actually paying what they're supposed to?

THE WHOLE SYSTEM IS SET UP TO PROTECT WORKERS from employers who try to dodge their responsibilities. If companies could just opt out of paying unemployment insurance, nobody would ever qualify for benefits! NYS Department of Labor takes this stuff seriously and audits employers regularly. Don't let any employer tell you they 'don't participate' in unemployment - that's not how it works.

One thing to keep in mind is that even part-time and temporary workers are usually covered under New York's unemployment insurance system, as long as they meet the minimum earnings requirements. So if you're working multiple jobs or just started somewhere new, you're likely building up eligibility. The system tracks your earnings from all covered employers over the past 18 months when you file a claim. It's actually pretty comprehensive coverage compared to some other states.