Can an employer not pay unemployment benefits - confused about how this works
I'm really confused about something. My coworker told me that some employers don't have to pay unemployment benefits to their workers. Is this true? I thought all employers had to contribute to unemployment insurance. I've been working at a restaurant for 8 months and now I'm worried that if I get laid off, I might not be eligible for NYS Department of Labor benefits. Can someone explain how this actually works? I tried looking it up but the information is really confusing.
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Grace Johnson
Your coworker is partially correct but probably confused about the details. In New York, most employers ARE required to pay unemployment insurance taxes, but there are some exceptions. Generally, if you work for an employer who has paid wages of $300 or more in any calendar quarter, they must contribute to unemployment insurance. However, some very small employers, certain agricultural workers, and independent contractors might not be covered. The key thing is whether YOU are considered an employee under NYS Department of Labor guidelines.
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Aurora St.Pierre
•Thanks! So if I'm a regular employee at a restaurant that definitely makes more than $300 per quarter, then my employer should be paying into unemployment insurance, right?
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Jayden Reed
yeah most employers pay into it but some try to classify workers as independent contractors to avoid it. happens a lot in restaurants actually
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Aurora St.Pierre
•Oh no, how can I tell if I'm classified correctly? I get a regular paycheck with taxes taken out.
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Nora Brooks
If you're getting regular paychecks with taxes withheld, you're almost certainly an employee, not an independent contractor. Your employer should be paying unemployment insurance taxes. When you eventually file for unemployment, the NYS Department of Labor will verify your work history and wages through their system. If there's an issue with your employer's coverage, that's not your problem to solve - the state will handle it. I had a similar concern last year and it turned out fine.
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Eli Wang
•Wait, so what happens if your employer wasn't paying the unemployment taxes they were supposed to? Do you just not get benefits?
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Nora Brooks
•No, you can still get benefits. The state will go after the employer for the unpaid taxes, but they won't deny your claim if you were legitimately an employee. The NYS Department of Labor has processes to handle these situations.
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Cassandra Moon
I had a nightmare situation where my employer claimed I was a contractor but I was clearly an employee. Took months to sort out with the NYS Department of Labor and I couldn't get through on the phone to explain my situation. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person at the unemployment office. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Ended up getting my benefits retroactively once they determined my employer was wrong.
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Aurora St.Pierre
•That sounds really stressful! How long did the whole process take once you got through to someone?
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Cassandra Moon
•About 3 weeks after I finally talked to an adjudicator. The hardest part was just getting someone on the phone to review my case properly.
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Zane Hernandez
Most restaurant workers are definitely covered unless you're working under the table. The real issue isn't whether employers 'pay unemployment' - they pay unemployment TAXES, and those taxes fund the system that pays YOU benefits when you're unemployed. Big difference that a lot of people don't understand.
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Genevieve Cavalier
•exactly!! people always think the employer pays your unemployment directly but its actually from the state unemployment fund
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