How do employers pay for unemployment benefits - confused about my claim status
I got laid off from my job at a manufacturing plant two weeks ago and filed for unemployment right away. My claim is approved but I'm only getting $387 per week when I was making $950 weekly before. My friend told me that employers have to pay into some kind of fund for unemployment but I'm confused about how this actually works. Does my old employer pay for my benefits directly or is it coming from somewhere else? Also wondering if the amount I get is related to how much my employer contributed? I've been searching online but can't find a clear answer about how employers pay for unemployment in NY.
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Connor O'Neill
Employers don't pay your benefits directly. They pay unemployment insurance taxes to NYS Department of Labor throughout the year based on their payroll. This money goes into the state unemployment insurance fund, which is what pays your weekly benefits. Your benefit amount is calculated from your earnings history in the base period, not from what your specific employer contributed.
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Zainab Ismail
•That makes sense! So it's like a big pool of money that all employers pay into? I was worried my old boss might get mad about paying my benefits.
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QuantumQuester
yeah employers pay quarterly taxes to fund unemployment. the rate they pay depends on how many former employees file claims against them. companies with lots of layoffs pay higher rates
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Yara Nassar
Your employer pays unemployment insurance premiums based on their experience rating - basically how many former employees have collected UI benefits. New businesses pay a standard rate until they build up a history. The rate can range from less than 1% to over 8% of wages depending on their claims experience. When you collect benefits, it does affect their future tax rate, but they're not writing you a check directly.
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Keisha Williams
•Wait so if I file for unemployment it makes my employer's taxes go up?? I feel bad now, they were actually pretty decent to work for before the layoffs.
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Yara Nassar
•Don't feel guilty about it! Unemployment insurance is exactly what it's designed for - protecting workers when they lose their jobs through no fault of their own. Employers know this is part of doing business.
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Paolo Ricci
I had trouble getting through to NYS Department of Labor when I had questions about this same thing last year. The phone lines are always busy and you get disconnected half the time. I ended up using this service called Claimyr (claimyr.com) that helped me actually reach a real agent to explain how the funding works. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped me understand the whole system better.
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Zainab Ismail
•Thanks! I might check that out if I have more questions. The NYS Department of Labor website is confusing and I can never get through on the phone.
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Amina Toure
The whole system is basically employers paying insurance premiums to cover potential unemployment claims. Think of it like car insurance - you pay premiums and hope you never need to use it, but it's there when you do. NYS Department of Labor collects these taxes from all covered employers and uses that fund to pay benefits to eligible claimants.
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