Do businesses pay for unemployment benefits in NY - confused about how this works
I just got laid off from my warehouse job and filed for unemployment with NYS Department of Labor. My former supervisor mentioned something about how they have to pay for my benefits now? I'm really confused about this whole system. Does my old company actually pay the money that goes into my weekly unemployment check? I thought this was government money. Can someone explain how this works because I'm worried my old boss might try to challenge my claim if it costs them money directly.
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Chloe Harris
Yes, employers do pay into the unemployment insurance system through payroll taxes. Every business in NY pays quarterly unemployment insurance taxes to NYS Department of Labor based on their payroll and their experience rating. When you collect benefits, it can affect their future tax rates. However, this doesn't mean they pay your benefits directly - it comes from the state unemployment insurance fund that all employers contribute to.
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CosmicCadet
•So they don't write me a check directly but their taxes might go up? That makes more sense. Should I be worried about them disputing my claim then?
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Diego Mendoza
yeah my old job tried to fight my unemployment claim because they didn't want their rates to go up... took forever to get resolved and I had to do a phone hearing with NYS Department of Labor
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Anastasia Popova
•If you have trouble reaching NYS Department of Labor for hearings or claim issues, I used this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really saved me when I couldn't get through on my own.
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Sean Flanagan
The unemployment system is funded by employer taxes, not employee deductions from your paycheck. Companies pay both federal (FUTA) and state unemployment taxes. In NY, the rate varies based on how many former employees have filed claims - it's called an experience rating. New businesses start at a standard rate but it adjusts over time based on their claim history.
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Zara Shah
•Wait so if a company lays off a lot of people their unemployment tax rate goes up? That seems backwards - shouldn't they pay more when they're doing well not when they're struggling?
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Sean Flanagan
•It's designed to encourage stable employment. Companies that rarely lay people off get lower rates as a reward for maintaining steady jobs.
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NebulaNomad
this whole system is RIGGED against workers! Of course employers fight claims because it costs them money. Meanwhile we're the ones who need to eat and pay rent but they make us jump through hoops with NYS Department of Labor just to save a few bucks on their taxes
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Diego Mendoza
•exactly! and then when you try to call NYS Department of Labor to ask questions you sit on hold for hours or get disconnected
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Luca Ferrari
Just went through this myself. Your employer can contest your claim within 10 days if they think you weren't eligible (like if they claim you quit instead of being laid off). But if you were legitimately laid off due to lack of work, you should be fine. Keep any documentation about your layoff just in case.
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