Does the employer have to pay unemployment benefits in NYS Department of Labor claims?
I just got laid off from my job at a small manufacturing company and I'm wondering how the unemployment system actually works. Does my former employer have to directly pay my unemployment benefits, or does NYS Department of Labor handle that? My boss seemed really upset about the layoffs and made some comments about how much it's going to cost the company. I'm confused about whether filing for unemployment will hurt them financially or if it comes from some other fund. Can someone explain how this works?
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Mei Wong
Your employer doesn't pay your benefits directly. NYS Department of Labor collects unemployment insurance taxes from all employers throughout the year to fund the unemployment insurance program. When you file a claim, the money comes from this insurance fund, not directly from your former employer's bank account. However, your claim can affect their future tax rates.
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GalaxyGlider
•That makes sense! So they already paid into the system before I even got laid off. Thanks for clarifying that.
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Liam Sullivan
The way it works is employers pay quarterly unemployment insurance taxes to NYS Department of Labor based on their payroll. The tax rate varies depending on how many former employees have filed successful claims against them. So while they don't pay your benefits directly, multiple claims can increase their future tax burden. That's probably why your boss was concerned about the cost.
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Amara Okafor
•exactly this is why some employers try to fight unemployment claims even when they're clearly valid
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Giovanni Colombo
I had a similar situation last year when our whole department got eliminated. My manager actually told us not to worry about filing because it wouldn't directly impact the company's cash flow. The unemployment benefits come from the state insurance fund that employers have been paying into. Just make sure you file your weekly claims on time!
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GalaxyGlider
•Good to know! I was worried about making things worse for them since they seemed genuinely sorry about the layoffs.
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Fatima Al-Qasimi
If you're having trouble getting through to NYS Department of Labor to ask questions about your claim, I used a service called Claimyr (claimyr.com) that helped me reach an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped when I needed to verify my claim status and couldn't get through the regular phone lines.
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StarStrider
•Never heard of that but might be worth trying if the phone system is still as bad as it was during the pandemic
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Dylan Campbell
yeah employers hate unemployment claims because it raises their rates but thats not your problem you paid into the system too through your work so dont feel guilty about using it
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