How do unemployment claims affect an employer - NYS Department of Labor questions
I'm a small business owner and just had my first employee file for unemployment after we had to let them go due to slow business. I'm getting notices from NYS Department of Labor and honestly have no idea what this means for my company. Will my taxes go up? Do I have to respond to anything? The employee was with us for about 8 months and we definitely paid into the unemployment system. Just trying to understand how unemployment claims affect an employer and what I should expect from NYS Department of Labor going forward.
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Amelia Cartwright
Yes, unemployment claims do affect employers in NY. Your unemployment insurance tax rate can increase based on your claims history - it's called an 'experience rating.' When employees file successful claims against your account, it goes into the calculation for future tax rates. You should respond to any NYS Department of Labor requests for information about the separation to ensure accurate determination.
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Royal_GM_Mark
•Thanks for explaining that. So even though the layoff was legitimate, it still counts against my tax rate? That seems unfair for situations beyond our control.
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Chris King
You'll get a form from NYS Department of Labor asking about the reason for separation - make sure you fill it out completely and return it on time. If you don't respond, they'll likely approve the claim by default. For layoffs due to lack of work, the claim will usually be approved and will affect your experience rating.
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Royal_GM_Mark
•I did get that form! I was wondering if I had to send it back. Good to know it's important to respond even for legitimate layoffs.
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Rachel Clark
Been running my business for 15 years and dealt with this many times. The good news is one claim probably won't dramatically change your rate, especially if it's your first. NYS Department of Labor looks at your overall claims history over time. Keep good documentation of why employees leave - it matters if you ever need to contest a claim.
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Zachary Hughes
Wait, so employers can contest unemployment claims? I thought once someone files they automatically get benefits?
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Amelia Cartwright
•No, employers can definitely contest claims if they believe the separation doesn't qualify for benefits - like if someone was fired for misconduct or quit without good cause. NYS Department of Labor investigates and makes a determination.
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Mia Alvarez
If you're having trouble getting through to NYS Department of Labor to ask questions about your employer responsibilities, I used a service called Claimyr that helped me reach an actual person. They have a demo at https://youtu.be/qyftW-mnTNI and their site is claimyr.com. Made it way easier than sitting on hold for hours trying to get answers about my claim status.
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Royal_GM_Mark
•Interesting, I didn't know there were services to help with NYS Department of Labor contact issues. Might be worth looking into if I have more questions.
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Carter Holmes
One thing to remember is that unemployment insurance is meant to be insurance - you pay premiums (taxes) and sometimes you have claims against the policy. It's the cost of doing business with employees. Focus on good hiring practices and clear documentation rather than worrying too much about one legitimate claim.
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Natasha Orlova
As someone who's been through this recently, I can confirm what others are saying about responding to NYS Department of Labor forms promptly. Even though it feels intimidating as a first-time employer dealing with this, the process is pretty straightforward. Just be honest about the circumstances - if it was truly a layoff due to business conditions, that's exactly what unemployment insurance is designed to cover. Your tax rate might increase slightly over time, but it's gradual and based on your overall experience rating, not just one claim. The key is staying on top of any correspondence from NYS Department of Labor and keeping good records of employment decisions going forward.
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