Do I pay into unemployment benefits through NYS Department of Labor deductions?
I've been working in NY for about 8 months now and just noticed something called 'SUTA' being taken out of my paycheck. My coworker said this might be related to unemployment insurance but I'm really confused about how this all works. Do I actually pay into unemployment benefits myself, or is this something else? I want to make sure I understand what's being deducted and whether this means I'm building up some kind of unemployment account with NYS Department of Labor. Can someone explain how the payment system works for UI benefits?
8 comments
Join the conversation
Adriana Cohn
You're seeing SUTA (State Unemployment Tax Act) deductions because New York is one of the few states where employees contribute to unemployment insurance. Most states only require employer contributions, but NY requires both. You pay 0.5% of your wages up to the annual wage base (around $12,300 for 2025). This doesn't create a personal account - it goes into the state's unemployment insurance fund that pays all eligible claimants.
0 coins
Brandon Parker
•So it's not like a savings account where I get back exactly what I put in? That makes more sense, I was wondering why the amounts seemed so small compared to what people get on unemployment.
0 coins
Jace Caspullo
Yeah I was confused about this too when I started my job. The SUTA deduction stops once you hit the wage cap for the year, so if you make decent money you'll notice it disappears from your paystub partway through the year.
0 coins
Melody Miles
Your employer also pays unemployment taxes separately - they pay much more than you do. The employee contribution is relatively small but it helps fund the system. When you file for unemployment benefits through NYS Department of Labor, your benefit amount is based on your earnings history, not how much you personally contributed.
0 coins
Nathaniel Mikhaylov
•This is really helpful! I had no idea employers paid so much more. Makes me feel better about the deduction knowing it's a shared system.
0 coins
Eva St. Cyr
I've been dealing with NYS Department of Labor for months trying to get through to someone about my claim status, and honestly the phone system is impossible. If you ever need to actually talk to them about unemployment stuff, I found this service called Claimyr that helps you get through their phone lines. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of calling and getting disconnected.
0 coins
Kristian Bishop
•Never heard of that but sounds useful. The NYS Department of Labor phone system is definitely a nightmare when you actually need help.
0 coins
Kaitlyn Otto
just fyi the whole unemployment system in this state is a mess, they take your money all year then make it impossible to actually get benefits when you need them. don't expect much if you ever have to file a claim
0 coins