Do companies pay into unemployment - NYS Department of Labor employer contribution confusion
I'm trying to understand how unemployment benefits actually work in New York. Do companies pay into unemployment for their employees? My boss mentioned something about unemployment taxes but I'm confused about the whole system. If I get laid off, where does that money actually come from? Is it like social security where both me and my employer contribute, or is it different? I've been working for 2 years and want to understand my benefits better.
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Olivia Evans
Yes, employers in New York pay unemployment insurance taxes to fund the system. You don't pay anything directly - it's entirely funded by employer contributions to NYS Department of Labor. The rate employers pay depends on their experience rating and how many former employees have filed claims. It's calculated as a percentage of each employee's wages up to the taxable wage base.
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Daniel Price
•That's good to know! So when I file a claim it doesn't come out of my past paychecks at all?
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Sophia Bennett
employers definitely pay but i think there might be some employee contribution too? not sure tbh, never really looked into it that deep
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Aiden Chen
•No employee contribution in NY for regular unemployment insurance. You're probably thinking of disability insurance which does come out of paychecks as a small deduction.
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Zoey Bianchi
The whole system is basically employers paying insurance premiums to cover their workforce. Companies with higher turnover and more claims pay higher rates - it's designed to incentivize keeping employees. When you file with NYS Department of Labor, your former employer's account gets charged, which can increase their future rates.
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Christopher Morgan
•This is why some employers fight unemployment claims so hard! They don't want their rates going up.
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Aurora St.Pierre
I had such a nightmare trying to get through to NYS Department of Labor when I was laid off last year. Spent hours on hold just to ask basic questions about my claim status. Finally found this service called Claimyr that actually got me connected to a real person at the unemployment office. They have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me so much frustration when I needed to verify my employer information for my claim.
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Daniel Price
•That sounds helpful - did it actually work to get you through to someone?
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Aurora St.Pierre
•Yeah it did! Check out claimyr.com if you need to talk to NYS Department of Labor directly. Way better than trying to call on your own.
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Grace Johnson
just remember that even though your employer pays the taxes, they can still contest your claim if they think you weren't eligible. happened to me and had to go through a whole appeal process
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