Do companies have to pay unemployment insurance - confused about NYS Department of Labor requirements
I'm starting a small business in NY and trying to understand if I'm required to pay into the unemployment insurance system. Do all companies have to pay unemployment insurance to NYS Department of Labor? I've heard different things from other business owners and want to make sure I'm compliant. What are the actual requirements for employers regarding UI contributions?
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Leeann Blackstein
Yes, most employers in New York are required to pay unemployment insurance taxes to NYS Department of Labor. If you have employees and meet certain criteria (like paying wages over $300 in a calendar quarter), you'll need to register and pay UI taxes. The rate varies based on your experience rating and industry.
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Liv Park
•Thank you! What's an experience rating? Is that based on how many former employees file claims?
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Ryder Greene
yeah all my previous employers paid into it thats how i was able to get benefits when i got laid off
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Carmella Fromis
There are specific thresholds you need to meet. Generally if you pay $300 or more in wages in any calendar quarter, or have one or more employees for some portion of a day in each of 20 different weeks in a year, you're subject to NYS Department of Labor unemployment insurance requirements. You'll need to register with the state and get an employer registration number.
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Liv Park
•That's really helpful - so it's not just about having employees, there are wage thresholds too. Where do I register?
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Carmella Fromis
•You can register online through the NYS Department of Labor employer services website. They'll assign you a rate and send quarterly reports you need to file.
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Theodore Nelson
Had issues reaching NYS Department of Labor when I needed to update my business info last year. Kept getting busy signals and their online chat was useless. Finally used claimyr.com to get through to an actual person - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole process so much easier than trying to call directly.
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Liv Park
•Good to know there are options if I can't get through the normal way. Thanks for sharing that!
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AaliyahAli
Wait I thought only big companies had to pay this?? I work for a tiny restaurant and I'm pretty sure they don't pay unemployment insurance because when I asked about it my manager said they were too small
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Leeann Blackstein
•Size doesn't matter as much as the wage thresholds mentioned above. Your restaurant probably does have to pay if they meet the criteria, but some small businesses don't realize their obligations.
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Ellie Simpson
The system is set up so employers fund the benefits that unemployed workers receive. Your UI tax rate will start at the new employer rate and then adjust based on your claims experience over time. Lower turnover = lower rates eventually.
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