Do I have to pay unemployment insurance - confused about NYS Department of Labor deductions
I just started a new job last month and I'm seeing deductions on my paystub that I don't understand. There's something labeled 'UI' and I think it might be unemployment insurance? Do I have to pay unemployment insurance as an employee in New York? I thought this was something employers handled. My HR department is pretty useless and I can't get a straight answer from them. Can someone explain what these deductions are for and if I'm required to pay them?
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StarSurfer
Yes, you do have to pay into unemployment insurance in New York. The 'UI' on your paystub stands for unemployment insurance and it's automatically deducted from your paycheck. For 2025, employees pay 0.5% of their wages up to the wage base limit. This contribution goes into the unemployment insurance fund that pays benefits when people lose their jobs. Both you and your employer contribute - you pay the employee portion and your employer pays a separate employer portion to NYS Department of Labor.
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Dmitry Petrov
•Thanks for explaining! So this money I'm paying now could potentially help me get unemployment benefits if I lose my job later?
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StarSurfer
•Exactly! Your contributions help fund the unemployment insurance system. To qualify for benefits later, you'll need to meet NYS Department of Labor requirements like having enough work history and losing your job through no fault of your own.
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Ava Martinez
yeah its mandatory, been paying it for years. the amount is pretty small compared to other deductions like taxes
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Miguel Castro
The unemployment insurance deduction is required by law in New York. You can find the exact rate and wage base on the NYS Department of Labor website under their employer information section. If you're having trouble getting information from your HR department, you might want to check your employee handbook or ask for a breakdown of all payroll deductions. Some people get confused because they think unemployment is only paid by employers, but employees contribute too.
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Zainab Abdulrahman
•Wait, I've been working for 6 months and never noticed this deduction before. Should I be worried that my previous employer wasn't taking it out?
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Miguel Castro
•You should definitely check your old paystubs. If your previous employer wasn't deducting unemployment insurance, that could be a problem. Contact NYS Department of Labor if you think there was an issue with your contributions not being properly reported.
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Connor Byrne
I had issues with my employer not properly reporting my UI contributions last year and it caused problems when I filed for unemployment. Couldn't get through to anyone at NYS Department of Labor for weeks to sort it out. Finally found this service called Claimyr that helped me get connected to an actual person at the unemployment office. They have a website at claimyr.com and there's a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process way less frustrating than trying to call myself.
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Dmitry Petrov
•Good to know there are options if I run into problems later. Hopefully my new employer is handling everything correctly.
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Yara Elias
The whole system is just another way for them to take money out of our paychecks. I've been paying into unemployment for 15 years and never used it once, but god forbid I miss a payment...
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QuantumQuasar
•I get the frustration but it's insurance - you hope you never need it but you're glad it's there if you do. Better to have it and not need it than need it and not have it.
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