Does a company pay for unemployment benefits when you get laid off?
I'm getting laid off next month from my manufacturing job and I'm wondering - does my company actually pay for my unemployment benefits or does that come from somewhere else? I've been working there for 6 years and paying into 'some kind of fund' according to my pay stubs but I'm not sure how it all works. Do I need to worry about my company trying to fight my claim because they don't want to pay? This is my first time dealing with unemployment and I want to know what to expect when I file with NYS Department of Labor.
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Shelby Bauman
Your employer doesn't directly pay your weekly unemployment benefits. They pay unemployment insurance taxes throughout the year to fund the system. When you file a claim, NYS Department of Labor pays you from this insurance fund. However, your company's unemployment tax rate can go up if they have a lot of former employees collecting benefits, so some employers do contest claims to keep their rates lower.
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Josef Tearle
•That makes sense! So they might still fight it even though they're not paying me directly. Good to know going in.
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Quinn Herbert
yeah companies pay unemployment taxes but not your actual benefits. its like insurance - they pay premiums and the insurance company pays claims. but definitely expect them to contest if they can find any reason
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Salim Nasir
The system works through employer contributions to the unemployment insurance fund. Your weekly benefit amount is calculated based on your earnings history, and payments come from this state-managed fund. Since you're being laid off (not fired for misconduct), you should have a straightforward claim process. Make sure to file your claim the week you become unemployed and keep documentation of your layoff notice.
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Hazel Garcia
•This is exactly right. I was laid off last year and my employer didn't contest anything since it was clearly a layoff situation. NYS Department of Labor processed my claim pretty quickly.
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Laila Fury
If you're having trouble reaching NYS Department of Labor by phone to ask questions about your claim, I'd recommend checking out claimyr.com - they have a service that helps you get through to an actual agent. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. I used it when I needed to verify my benefit amount and it saved me hours of calling.
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Josef Tearle
•Thanks for the tip! I'll keep that in mind if I run into issues getting through to them.
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Geoff Richards
Wait so if companies pay these taxes anyway why do they care about fighting claims? Seems like they're paying either way??
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Shelby Bauman
•Their tax rate is partially based on their 'experience rating' - how many successful claims their former employees have filed. More claims = higher taxes in future years.
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Simon White
The whole system is set up to screw workers honestly. Companies pay the bare minimum in taxes then fight every claim to keep their rates low. Meanwhile we're stuck jumping through hoops just to get benefits we've earned!
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Hazel Garcia
Just wanted to add that for a straightforward layoff like yours, most employers won't contest. It's usually only when there's misconduct or voluntary quit situations that they fight it. You should be fine!
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Mikayla Davison
As someone who went through this process recently, I can confirm what others have said - your employer pays unemployment insurance taxes quarterly, but your actual weekly benefits come from the state fund. The key thing to remember is to file your claim immediately when your layoff becomes effective, don't wait! Also, keep your layoff notice/paperwork because NYS DOL will likely ask for it. Since you're being laid off (not terminated for cause), your claim should be approved without issues. The whole process took about 2-3 weeks for me to start receiving benefits after filing online.
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