Do workers pay into unemployment insurance through payroll deductions in NY?
I just started a new job and noticed my paystub doesn't show any deduction for unemployment insurance. My coworker said workers don't pay into the unemployment system but I find that hard to believe. If we don't pay into it, how does NYS Department of Labor fund unemployment benefits? Can someone explain how this actually works in New York?
9 comments
Join the conversation
Diego Rojas
Your coworker is correct - employees in New York do NOT pay into unemployment insurance through payroll deductions. Only employers pay unemployment taxes to fund the system. In NY, employers pay both state unemployment insurance (SUI) and federal unemployment tax (FUTA). The money comes entirely from employer contributions, not employee wages.
0 coins
Chloe Martin
•That's surprising! So when I file for unemployment, I'm basically getting benefits funded entirely by my former employer's taxes?
0 coins
Anastasia Sokolov
wait really?? i always thought we paid into it like social security. thats actually pretty cool that its free for us
0 coins
StarSeeker
•It's not exactly 'free' - employers factor these costs into their overall labor expenses, which can affect wages and hiring decisions. But yes, there's no direct employee contribution.
0 coins
Sean O'Donnell
This is one of those things that confuses people constantly when dealing with NYS Department of Labor claims. I've seen people panic thinking they didn't pay enough into the system to qualify for benefits. The qualification is based on your work history and wages earned, not contributions you made.
0 coins
Zara Ahmed
•EXACTLY! I was so worried when I filed my claim that I hadn't 'paid in enough' but NYS Department of Labor just looks at your base period wages and work quarters.
0 coins
Luca Esposito
Had a nightmare trying to get through to NYS Department of Labor to ask this exact question last month. Kept getting disconnected after waiting on hold forever. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person who explained the whole funding system. They have a demo video too https://youtu.be/qyftW-mnTNI if you want to see how it works.
0 coins
Chloe Martin
•Interesting, I might check that out if I ever need to reach NYS Department of Labor directly. The phone system is definitely frustrating.
0 coins
Nia Thompson
my brother always complains about unemployment taxes as a small business owner. says its one of his biggest headaches with payroll. guess now i know why we dont see it on our checks!
0 coins