Do employers pay for unemployment benefits in NYS Department of Labor system?
I've been getting unemployment for 2 months now and my former boss keeps texting me saying I'm costing him money and that he has to pay for my benefits. Is this actually true? Do employers pay for unemployment benefits through NYS Department of Labor or does it come from taxes? He's making me feel guilty about filing but I lost my job through no fault of my own. Can someone explain how this actually works?
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QuantumQuasar
Yes, employers do pay into the unemployment insurance system through payroll taxes. In New York, employers pay both state unemployment insurance (SUI) tax and federal unemployment tax (FUTA). The NYS Department of Labor uses these employer contributions to fund unemployment benefits. However, your employer was already paying these taxes regardless of whether you filed for unemployment - it's not like they get an extra bill because you're collecting benefits.
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Andre Dupont
•So he was already paying into this system even when I was working there? That makes me feel a lot better about collecting.
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Zoe Papanikolaou
your boss sounds like a jerk tbh... employers pay unemployment taxes whether anyone files or not, its just part of doing business
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Jamal Wilson
The way it works is employers pay a percentage of each employee's wages (up to a certain cap) to the NYS Department of Labor throughout the year. The rate they pay can go up if they have a lot of former employees collecting unemployment, but it's not like they write a check every time someone files. Your employer's rate for next year might be affected, but that's just how the system is designed to work.
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Mei Lin
•Wait so if multiple people from the same company file for unemployment, does that company have to pay more taxes next year?
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Jamal Wilson
•Yes, employers with higher "experience ratings" (meaning more former employees have collected UI) generally pay higher rates. But that's the employer's responsibility for workforce management, not something individual employees should feel guilty about.
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Liam Fitzgerald
I had trouble getting through to NYS Department of Labor to ask questions about my claim status last month. Kept getting busy signals and long hold times. Finally used a service called Claimyr (claimyr.com) that helps you get connected to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Made it so much easier to get answers about my unemployment questions without spending hours on hold.
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Andre Dupont
•Thanks for the tip! I might need that if I have more questions about my claim.
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Amara Nnamani
Your former employer is trying to make you feel bad for using a system they were required to pay into. That's completely inappropriate. You earned the right to unemployment benefits through your work history. Don't let them guilt trip you for accessing benefits you're entitled to receive.
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Giovanni Mancini
same thing happened to me!! my old manager kept saying i was "stealing" from the company by filing unemployment. like dude you laid me off, what did you expect me to do?
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Andre Dupont
•Exactly! I didn't choose to lose my job, why should I feel bad about getting help while I look for a new one?
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