Confused about which agency I pay unemployment taxes to - NYS Department of Labor or IRS?
I'm trying to figure out my tax situation and I'm completely lost about unemployment taxes. Do I pay unemployment taxes to NYS Department of Labor directly or does it go through the IRS? I received unemployment benefits for about 6 months last year and I know there are taxes involved but I can't find clear information about who actually collects them. My HR department at my new job mentioned something about state unemployment taxes but I'm not sure if that's different from what I owe on the benefits I received. Can someone explain this to me like I'm five?
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Nia Wilson
There are actually two different types of unemployment taxes you might be thinking about. As an employee, you don't directly pay unemployment taxes to NYS Department of Labor - your employer pays those on your behalf. However, if you received unemployment benefits, those are considered taxable income and you'll report them on your federal and state tax returns. You should have received a 1099-G form from NYS Department of Labor showing how much you received in benefits.
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Luca Russo
•Oh that makes more sense! So the unemployment taxes my employer pays are separate from me owing taxes on the benefits I received?
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Mateo Sanchez
Yeah your employer pays SUTA (State Unemployment Tax Act) taxes to NYS Department of Labor for all employees. You as the employee don't pay into that system directly. But if you collected unemployment benefits, that money counts as income for tax purposes so you'll owe regular income tax on it when you file your 2024 return.
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Aisha Mahmood
•Exactly this. I made the mistake of not setting aside money for taxes on my unemployment benefits and got hit with a big bill.
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Ethan Clark
I was so confused about this too! I kept trying to call NYS Department of Labor to ask about paying taxes but could never get through. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual agent who explained it all. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent clarified that NYS Department of Labor doesn't collect income taxes from claimants - that's all handled through your regular tax filing.
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Luca Russo
•That's really helpful! I'll check that out because I definitely need to talk to someone who can explain this properly.
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AstroAce
Just to be clear - you file your unemployment income on your regular tax return using the 1099-G form. You don't send money directly to NYS Department of Labor for taxes. The only time you'd send money directly to NYS Department of Labor is if you had an overpayment that you needed to repay.
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Yuki Kobayashi
this whole system is so confusing why cant they just make it simple
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Carmen Vega
•I know right? I spent hours trying to figure this out last year
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