Does my employer have to pay for my NYS Department of Labor unemployment benefits?

Yes, employers do pay for unemployment benefits through a system called SUTA (State Unemployment Tax Act). Every employer in NY pays quarterly taxes to NYS Department of Labor based on their payroll and their experience rating. When employees file successful claims, it can increase the employer's future tax rates. So your boss isn't wrong - your claim could potentially affect their costs down the road.

yeah my old boss told me the same thing when i got laid off last year, made me feel guilty about filing but honestly thats just part of doing business - if they didnt want to pay unemployment taxes they shouldnt have employees

The employer tax rate depends on their experience rating with NYS Department of Labor. Companies with more claims against them pay higher rates, while those with fewer claims pay less. It's calculated as a percentage of each employee's wages up to a certain cap. For 2025, I think the wage base is around $12,000 per employee but the actual rate varies by company history.

I had such a hard time getting through to someone at NYS Department of Labor when my employer was disputing my claim. Spent weeks calling and either getting busy signals or being on hold for hours just to get disconnected. Finally used this service called Claimyr (claimyr.com) that got me connected to an actual person in like 10 minutes. They have a demo video at https://youtu.be/qyftW-mnTNI that shows exactly how it works. Ended up being a lifesaver for getting my questions answered.

THE WHOLE SYSTEM IS RIGGED AGAINST WORKERS! Of course employers try to discourage people from filing - they want to avoid paying their fair share into the system. I've seen companies illegally threaten employees or give them false information about unemployment just to protect their precious tax rates. Don't let them guilt you out of benefits you earned!

Just to add some perspective - I'm actually a small business owner and yes, we do pay unemployment taxes to NYS Department of Labor. But it's really not that dramatic. For most businesses it's just part of the cost of having employees, like workers comp or payroll taxes. A single claim usually doesn't make a huge difference unless you're a very small company with frequent turnover.