Do employers pay for unemployment benefits in NY - confused about how NYS Department of Labor funding works
I got laid off from my retail job last month and have been collecting unemployment. My former manager called me yesterday asking about my claim and mentioned something about it affecting their 'experience rating' or whatever. I'm really confused - do employers actually pay for my unemployment benefits? I thought this came from taxes everyone pays. Can someone explain how this works with NYS Department of Labor? I don't want my old boss thinking I'm costing them money if that's not how it works.
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Mateo Perez
Yes, employers do pay for unemployment insurance through the State Unemployment Tax (SUTA). Every employer in NY pays into the unemployment insurance fund based on their payroll and their 'experience rating' - basically how many former employees have filed claims. Your benefits don't come directly from your specific employer, but their tax rate can go up if they have lots of claims. It's part of the cost of doing business though, so don't feel guilty about filing.
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Nia Davis
•Oh wow, I had no idea! So that's why my manager seemed weird about it. Does this mean they can fight my claim or something?
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Aisha Rahman
Your former boss is probably worried about their unemployment insurance premiums going up. Employers pay quarterly taxes to NYS Department of Labor based on their claims history. More claims = higher rates. But here's the thing - if you were legitimately laid off, there's nothing they can do about it. You earned those benefits by working. Don't let them guilt trip you into not claiming what you're entitled to.
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CosmicCrusader
•This is exactly right. I've seen employers try to discourage people from filing just to keep their rates down. It's basically insurance fraud if they pressure you not to file when you're eligible.
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Ethan Brown
wait so if I file for unemployment my old job has to pay more taxes?? no wonder my last boss was such a jerk when I got fired
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Yuki Yamamoto
The funding mechanism is actually pretty complex. Employers pay both federal (FUTA) and state (SUTA) unemployment taxes. In New York, the SUTA rate varies from 0.6% to 9.9% of the first $12,300 of each employee's wages, depending on the employer's experience rating. New employers start at 4.1%. The more former employees who collect benefits, the higher their rate goes. It's designed to incentivize employers to avoid layoffs when possible.
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Nia Davis
•Thanks for explaining this! I feel a bit bad now knowing it costs them more, but I really need these benefits to pay rent.
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Mateo Perez
•Don't feel bad! This is exactly what the system is designed for. Employers know these costs when they hire people - it's part of their business expenses.
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Carmen Ortiz
I've been dealing with NYS Department of Labor for months trying to get through to someone about my claim status. The phone system is impossible! I finally found this service called Claimyr that actually got me connected to a real person at the unemployment office. You can check it out at claimyr.com - they even have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Way better than spending hours on hold.
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Nia Davis
•Oh interesting! I might need that if I have issues with my weekly claims. How does it work exactly?
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Carmen Ortiz
•It basically handles the calling and waiting for you, then connects you when they get a human on the line. Saved me so much time and frustration.
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Andre Rousseau
Yeah my cousin works in HR and she says they hate unemployment claims because it jacks up their insurance rates. But like everyone else said, that's their problem not yours. You worked, you paid into the system through your job, you deserve the benefits when you need them.
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