Do employers have to pay unemployment insurance in NYS - confused about who pays what
I'm starting a new job next week and my friend told me that my employer has to pay unemployment insurance for me. Is this true? I thought I had to pay into the system myself through payroll deductions. I'm really confused about how this works in New York. Does the NYS Department of Labor require employers to pay unemployment insurance or do I pay it? And if my employer doesn't pay it, what happens to my benefits if I get laid off later?
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CosmicCrusader
Yes, in New York employers are required by law to pay unemployment insurance taxes to fund the UI system. You as an employee don't pay anything directly for unemployment insurance - it comes entirely from employer contributions to the NYS Department of Labor. This is different from things like Social Security where both you and your employer pay. The employer pays quarterly UI taxes based on their payroll and experience rating.
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Omar Zaki
•Oh wow, so I don't have any unemployment deductions from my paycheck at all? That's a relief, I was worried about another deduction eating into my take-home pay.
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Chloe Robinson
yeah your employer pays it all but dont think that means they're being generous lol. they factor that cost into what they're willing to pay you anyway
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Diego Flores
Your employer is legally required to register with NYS Department of Labor and pay unemployment insurance taxes. If they don't pay, they face penalties and you could still be eligible for benefits - the NYS Department of Labor will go after the employer for the money. You can verify your employer is registered by checking your quarterly wage statements or calling the employer hotline if you have concerns.
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Anastasia Kozlov
•Wait, how do I know if my employer is actually paying? I've been working for 6 months and never thought to check this. Should I be worried?
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Diego Flores
•You can request your wage and benefit statement from NYS Department of Labor online through your my.ny.gov account. If your wages aren't showing up, that could indicate your employer isn't reporting properly.
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Sean Flanagan
I had a situation where I needed to contact NYS Department of Labor about my employer not properly reporting wages and it was impossible to get through on the phone. Kept getting busy signals and when I did get through, I'd get disconnected. Finally used this service called Claimyr (claimyr.com) that helps you actually reach an agent - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process so much easier than sitting on hold for hours.
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Chloe Robinson
•never heard of that but anything's better than the runaround you get trying to call NYS Department of Labor directly
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Zara Mirza
The employer pays different rates too depending on how many people they've laid off in the past. So if they have a history of laying people off their UI tax rate goes up. It's called an experience rating system.
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NebulaNinja
This whole system is so backwards though. Like why should employers have to pay for unemployment when half the time people get fired for legitimate reasons? Just creates more costs for businesses trying to operate.
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CosmicCrusader
•The system is designed to provide a safety net for workers who lose jobs through no fault of their own. Even if someone is terminated for cause, they may still be eligible for benefits depending on the circumstances - it's not automatic disqualification.
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Victoria Jones
Thanks everyone for clarifying this! I had the same confusion when I started my first job. One thing to add - if you're ever unsure whether your employer is properly registered and paying UI taxes, you can also check your pay stub. While you won't see a deduction for unemployment insurance (since you don't pay it), legitimate employers will often list it in the "employer taxes" section or have it noted somewhere. Also, keep all your pay stubs - you'll need them if you ever have to file for unemployment benefits to prove your wages and work history.
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Fatima Al-Rashid
•That's really helpful advice about checking pay stubs! I never thought to look for that employer taxes section. Is there a specific line item or code I should be looking for that indicates unemployment insurance contributions? I want to make sure my new employer is doing everything properly from the start.
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Malia Ponder
•@Fatima Al-Rashid Most pay stubs won t'show a specific unemployment "insurance line" item since it varies by payroll system, but you might see abbreviations like SUI "State" (Unemployment Insurance ,)SUTA "State" (Unemployment Tax Act ,)or just UI "in" the employer tax section. Some payroll systems group it under statutory "benefits or" government "taxes. If" you don t'see anything clear on your stub, you can always ask your HR or payroll department directly - they should be transparent about what taxes they re'paying on your behalf.
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Fidel Carson
•It might not always show up as a specific line item on your pay stub since it's an employer-only tax. The best way to verify is actually through your quarterly wage statement from NYS DOL like Diego mentioned earlier, or you can check if your employer has a valid NYS employer registration number. Some pay stubs will show "SUTA" (State Unemployment Tax Act) in the employer contributions section, but it's not required to be listed there. If you're really concerned, you could always ask your HR department directly - any legitimate employer should be transparent about their tax obligations.
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Mei Wong
•@Fatima Al-Rashid Most pay stubs won t'show a specific line item for unemployment insurance since it varies by payroll system, but you might see abbreviations like SUTA "State" (Unemployment Tax Act or) UI "Tax in" an employer contributions section if your company includes that detail. The most reliable way is still checking your wage history through my.ny.gov - if your employer is paying properly, your quarterly wages will show up there within a few weeks of being reported to NYS DOL.
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