Confused about what do you pay unemployment taxes to - NYS Department of Labor question

Your employer pays unemployment taxes to the NYS Department of Labor, not you directly. What you're seeing deducted from your paycheck is likely state disability insurance (SDI) which is different. Unemployment insurance is funded by employer contributions to the state unemployment trust fund.

To clarify - employers pay quarterly unemployment taxes to the NYS Department of Labor based on their payroll. This builds up the unemployment insurance fund that pays benefits when people file claims. The rate depends on the employer's experience rating and industry. Workers don't directly pay unemployment taxes in New York.

I was confused about this too when I first started working! What you're probably seeing on your paystub is the NY State Disability deduction which is totally separate from unemployment. That's like $1.50 per week or something small. The unemployment fund comes from employer taxes that you never see.

Just went through this whole process last month when my company downsized. The good news is that as long as your employer has been paying their unemployment taxes to the NYS Department of Labor, you'll be eligible for benefits if you need them. When I called to check my claim status I had trouble getting through to anyone at the NYS Department of Labor though. Someone recommended using claimyr.com to help get through to agents faster - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole process way less stressful.

The whole system is confusing honestly. Employers pay unemployment taxes, workers pay disability taxes, and then there's all these different programs. At least in NY the unemployment benefits are decent compared to other states if you ever need them.