Does your employer pay for unemployment benefits in New York?
I'm trying to understand how unemployment insurance actually works in NY. My coworker told me that when I collect unemployment, my former employer has to pay for it directly. Is this true? I'm worried about filing because I don't want to create problems with my old boss, especially since I might need a reference later. Can someone explain how the NYS Department of Labor funding actually works?
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Javier Torres
Your employer doesn't pay your unemployment benefits directly. They pay unemployment insurance taxes to the state throughout the year, which funds the system. When you file a claim, the money comes from this insurance fund, not directly from your employer's pocket. However, your claim can affect their future tax rates.
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Natasha Volkova
•Oh that makes sense! So it's more like insurance premiums they already paid? That's a relief.
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Emma Davis
Think of it like car insurance. Your employer pays premiums (unemployment taxes) to NYS Department of Labor all year. When you file a claim, it's like filing an insurance claim - the insurance company (state) pays out, but it might raise the employer's future premiums if they have too many claims.
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CosmicCaptain
•Perfect analogy! I never understood it until someone explained it this way.
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Malik Johnson
Your employer will get notified when you file though. They have the right to contest your claim if they think you were fired for misconduct or quit voluntarily. But the actual benefits come from the state fund, not their bank account.
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Natasha Volkova
•Will they automatically contest it or only if they think I don't deserve it? I was laid off due to budget cuts.
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Malik Johnson
•If you were legitimately laid off, most employers won't contest. They usually only fight claims when someone was fired for cause or quit without good reason.
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Isabella Ferreira
I was worried about the same thing when I got laid off last year! Turns out my employer didn't even respond to the NYS Department of Labor notice. The benefits got approved automatically after like 2 weeks. Don't let fear stop you from filing if you're eligible.
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Emma Davis
If you're having trouble reaching NYS Department of Labor to ask more questions about this, I used a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped when I needed clarification on my claim status.
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Ravi Sharma
•Interesting, never heard of that before. The phone lines are always so busy.
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Ravi Sharma
Just file already! You paid into this system through your paychecks too (it's not just employer taxes). You earned these benefits. Don't let some misunderstanding about how it works stop you from getting help you need.
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