Does my former employer pay for my NYS Department of Labor unemployment benefits?
I just got laid off from my warehouse job last month and started collecting unemployment through NYS Department of Labor. My friend told me that my old employer has to pay for my benefits directly but that doesn't sound right to me? I thought this came from some kind of government fund. Can anyone explain how this actually works? I'm worried my former boss might try to challenge my claim if he's the one paying for it.
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Rosie Harper
Your former employer doesn't pay your benefits directly. What happens is that all employers in New York pay unemployment insurance taxes (called SUTA - State Unemployment Tax Act) to NYS Department of Labor throughout the year. These taxes go into a fund that pays everyone's unemployment benefits. However, when you file a claim, it does get charged back to your former employer's account, which can affect their tax rate in future years. So while they're not cutting you a check each week, your claim does impact their costs.
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Darren Brooks
•Oh that makes more sense! So they already paid into the system but my claim affects their future rates? That explains why some employers fight claims I guess.
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Elliott luviBorBatman
wait so if my employer fights my claim does that mean they don't want to pay?? I'm so confused about this whole process and my claim has been pending for weeks
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Demi Hall
•Employers sometimes contest claims to keep their unemployment tax rates lower, not because they pay your weekly benefits directly. If you're having trouble getting through to NYS Department of Labor about your pending claim, you might want to check out claimyr.com - they help people get connected to actual agents without waiting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works.
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Mateusius Townsend
I had the same confusion when I first filed! Your employer pays unemployment taxes whether anyone files claims or not. Think of it like insurance premiums - they pay in advance, then if claims happen, those get charged to their 'account' with NYS Department of Labor. The more claims they have, the higher their future tax rate goes. That's why some employers try to challenge claims even for legitimate layoffs.
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Kara Yoshida
•Exactly! And if you were laid off legitimately you shouldn't worry about them challenging it. NYS Department of Labor investigates these things pretty thoroughly.
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Philip Cowan
THE WHOLE SYSTEM IS RIGGED!!! Employers can fight your claim just to save money on their taxes while you're struggling to pay rent. I had to appeal my disqualification twice because my old boss lied about why I was terminated. These companies don't care about workers at all.
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Caesar Grant
•that sucks but at least the appeals process exists right? how long did it take to get resolved?
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