Do you pay into unemployment benefits through NYS Department of Labor payroll deductions?
I just started my first real job out of college and I'm looking at my pay stub. I see there's a deduction for something called 'SUI' which I think might be state unemployment insurance? Do employees actually pay into the unemployment system in New York? I always thought it was just employers who funded unemployment benefits through the NYS Department of Labor. Can someone explain how this works? I want to make sure my payroll department isn't making a mistake with my deductions.
10 comments
Join the conversation
TillyCombatwarrior
Actually, in New York employees do NOT pay into the unemployment insurance system. Only employers pay unemployment taxes to fund the UI program through NYS Department of Labor. If you're seeing 'SUI' deducted from your paycheck, that's likely State Disability Insurance, not unemployment insurance. SDI is the temporary disability program that employees do pay into. You should double-check with your HR department about what exactly that deduction is for.
0 coins
Dyllan Nantx
•Oh wow, that makes sense! I was so confused. So when I eventually file for unemployment if I lose my job, that's funded entirely by what my employer pays to NYS Department of Labor?
0 coins
Anna Xian
Yeah your employer pays quarterly unemployment taxes based on their payroll and experience rating. The more former employees who file UI claims, the higher their tax rate goes. That's why some employers fight unemployment claims so hard - it directly affects their costs.
0 coins
Jungleboo Soletrain
•Exactly! And that SUI deduction you're seeing is definitely for disability insurance, not unemployment. Two totally different programs.
0 coins
Rajan Walker
Wait I'm confused too now... I thought we paid into unemployment through FICA or something? My mom always told me that's why we 'earned' unemployment benefits when we get laid off.
0 coins
TillyCombatwarrior
•FICA is for Social Security and Medicare, not unemployment. Your mom might be thinking of how you have to have worked and earned wages to qualify for UI benefits, but employees don't directly pay unemployment taxes in NY.
0 coins
Nadia Zaldivar
I had the same confusion when I started working! The disability insurance deduction threw me off because I didn't know what it was for. If you ever need to contact NYS Department of Labor about unemployment eligibility or any questions, I found this service called Claimyr that helps you actually get through to their phone agents. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Super helpful when you can't get through the regular way.
0 coins
Dyllan Nantx
•Thanks! I'll bookmark that just in case. Hopefully I won't need unemployment anytime soon but good to know there are options if the phone lines are busy.
0 coins
Lukas Fitzgerald
just to confirm - NO employee payroll deductions for unemployment in NY. only employers pay those taxes. your paycheck should only have federal income tax, state income tax, social security, medicare, and disability insurance deducted.
0 coins
Jackie Martinez
•This is super helpful clarification! I was getting worried that my HR department messed something up. So just to be 100% clear - that SUI deduction is for disability insurance, and when it comes to unemployment benefits, those are entirely funded by employer contributions to NYS Department of Labor. Thanks everyone for clearing this up!
0 coins