Do employers pay unemployment insurance premiums to NYS Department of Labor?
I'm trying to understand how the unemployment system works in New York. When I file for benefits through NYS Department of Labor, where does that money actually come from? Do my previous employers have to pay some kind of unemployment insurance to cover these payments? My friend said something about employers paying into a fund but I'm not sure if that's accurate. Just curious about how this all works behind the scenes.
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Serene Snow
Yes, employers in New York are required to pay unemployment insurance taxes to NYS Department of Labor. It's called State Unemployment Tax (SUTA) and it funds the unemployment insurance program. Most employees don't pay into this - it comes entirely from employer contributions. The rate employers pay depends on their industry and their history of layoffs.
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Asher Levin
•That makes sense! So when I get my weekly unemployment payments, it's basically coming from taxes my employer already paid to the state?
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Issac Nightingale
yep employers def pay for unemployment insurance. thats why some companies fight unemployment claims so hard - it can raise their rates if too many people file claims
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Romeo Barrett
•Actually that's a common misconception. Individual claims don't directly raise rates immediately. NYS Department of Labor uses a complex formula based on the employer's total benefit charges over multiple years compared to their payroll. One or two claims usually won't impact rates significantly.
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Marina Hendrix
I had trouble getting information about this when I was dealing with a contested claim. Couldn't get through to anyone at NYS Department of Labor for weeks. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process way easier than sitting on hold for hours.
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Justin Trejo
•How does that work exactly? Do they just call for you or something?
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Marina Hendrix
•Yeah basically they handle the calling and waiting, then connect you when they get an agent on the line. Saved me tons of time when I needed to sort out my claim status.
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Alana Willis
The whole system is basically employers subsidizing their former workers. Which is fine in theory but the rates and regulations keep getting more complicated every year. Some small businesses struggle with the administrative burden of tracking all the NYS Department of Labor requirements.
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Tyler Murphy
thanks for explaining this! i always wondered where unemployment money came from but never thought to look it up
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