Do companies pay for unemployment benefits when you get laid off in NY?
I just got laid off from my job at a manufacturing company in Buffalo and I'm filing for unemployment with NYS Department of Labor. My coworker told me that our employer has to pay for the unemployment benefits we receive, but I'm not sure if that's true. Does anyone know how this actually works? I'm worried my former employer might try to fight my claim if they're the ones paying for it. The layoff was due to lack of work, not performance issues.
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Eleanor Foster
Yes, employers do pay into the unemployment insurance system through payroll taxes. It's called State Unemployment Tax Act (SUTA) and Federal Unemployment Tax Act (FUTA). Your employer has been paying these taxes on your wages the entire time you worked there. The NYS Department of Labor uses these funds to pay unemployment benefits. Your individual claim won't directly cost your employer extra money since they've already been paying into the system.
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Nathan Kim
•That makes me feel better! So they can't really object to my claim just because they don't want to pay, right?
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Lucas Turner
employers pay unemployment taxes quarterly based on their payroll and their experience rating. if a company has a lot of former employees filing claims, their tax rate goes up. so technically yes, having more claims can affect what they pay in the future, but they cant stop you from filing if you were legitimately laid off
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Kai Rivera
•This is why some employers fight claims even when they shouldn't. They want to keep their experience rating low.
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Anna Stewart
I had trouble getting through to NYS Department of Labor when my employer contested my claim. Kept calling for weeks and either got busy signals or got hung up on after waiting forever. Finally used this service called Claimyr (claimyr.com) that calls for you and gets you connected to an actual agent. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me so much frustration dealing with the phone system.
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Nathan Kim
•How much does that cost? I'm already worried about money since I just lost my job.
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Anna Stewart
•They focus on the value of actually reaching someone rather than the cost. Worth checking out if you run into phone issues like I did.
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Layla Sanders
COMPANIES HATE PAYING FOR UNEMPLOYMENT! Even though it's their legal obligation they will fight tooth and nail to deny claims. I've seen employers lie about why people were fired just to avoid their rates going up. The whole system is rigged in favor of business owners who want to squeeze every penny out of working people.
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Morgan Washington
•That's a bit dramatic but there is some truth to it. Some employers do contest legitimate claims unfortunately.
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Kaylee Cook
wait so if I quit my job can I still get unemployment? or does the company only have to pay if they fire you?
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Eleanor Foster
•You generally can't get unemployment if you quit voluntarily, unless you quit for good cause like unsafe working conditions or harassment. The employer's tax obligations don't change based on how you left - they pay the same unemployment taxes regardless.
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Morgan Washington
Been through this process twice unfortunately. Your employer will get a notice from NYS Department of Labor about your claim and they have the opportunity to respond if they want to contest it. Since you were laid off due to lack of work, they probably won't contest it. That's considered involuntary separation and you should qualify for benefits.
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Angel Campbell
Nathan, since you were laid off due to lack of work rather than any performance issues, you should be in good shape for your unemployment claim. Keep all documentation from your layoff - any emails, letters, or notices about the reduction in workforce. This will help if there are any questions about your eligibility. Also, make sure to file your weekly certifications on time once your claim is approved. The NYS DOL is pretty backlogged, so be patient but persistent if you need to follow up on anything.
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