Do employees pay into unemployment insurance in New York - confused about NYS Department of Labor deductions
I just started a new job and noticed there's no line item on my paystub for unemployment insurance. My coworker said employees don't pay into UI in most states but I'm seeing conflicting info online. Does anyone know if we pay into unemployment insurance as employees in New York? I want to make sure my employer is handling this correctly and that I'll be covered if something happens.
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Avery Davis
In New York, employees do NOT pay into unemployment insurance. Only employers pay UI taxes to fund the system. You won't see any deduction on your paystub for unemployment insurance. The NYS Department of Labor unemployment system is entirely funded by employer contributions based on their payroll and experience rating.
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Ev Luca
•Thank you! That's exactly what I needed to know. So I don't need to worry about any missing deductions then.
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Collins Angel
wait i thought we paid into it? im confused now because my friend in another state said she pays unemployment tax
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Marcelle Drum
•There are only 3 states where employees pay into unemployment insurance - Alaska, New Jersey, and Pennsylvania. In the other 47 states including New York, it's employer-funded only. Your friend might be in one of those three states or thinking of something else like disability insurance.
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Tate Jensen
This is correct - no employee contributions in NY. But make sure your employer is actually paying their UI taxes! I had an issue years ago where my employer wasn't current on their NYS Department of Labor payments and it caused problems when I tried to file a claim. The system is designed so that as long as you worked for a covered employer who paid their taxes, you're eligible.
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Ev Luca
•How would I even check if my employer is paying their taxes? Is that something I can verify?
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Avery Davis
•You wouldn't normally be able to check that directly, but if you ever need to file for unemployment and there are issues with your work history showing up in the NYS Department of Labor system, that could be a sign. Most legitimate employers handle this properly though.
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Adaline Wong
Just to add - even though you don't pay into it directly, you do 'earn' unemployment benefits by working and having your employer pay those taxes on your behalf. So you're still building up eligibility even without direct contributions from your paycheck.
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Gabriel Ruiz
•That's a good point. I always wondered how the system worked since we don't pay in directly but still earn benefits.
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Miguel Alvarez
This thread is really helpful! I'm new to NY from California and was worried I was missing something when I didn't see UI deductions. It's actually kind of nice that we don't have that extra deduction from our paychecks here. Does anyone know roughly what percentage employers pay? Just curious how the funding works on their end.
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