How does an employee collecting unemployment affect the employer - NYS Department of Labor questions
I'm a small business owner and had to lay off two employees last month due to slow business. They both filed for unemployment benefits through NYS Department of Labor and I'm wondering what this means for me as the employer? Will my unemployment insurance rates go up? Do I have to pay anything directly or does it all come from the state fund? I got some paperwork from NYS Department of Labor asking about their separation but I'm not sure what happens next. Anyone know how this process works from the employer side?
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Keith Davidson
Your unemployment insurance rates are based on your experience rating with NYS Department of Labor. Each claim against your account can potentially affect your rate for future years, but it depends on your overall claims history and industry. You don't pay the benefits directly - they come from the state unemployment fund that you've been paying into through your quarterly UI taxes.
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Taylor Chen
•Thanks! So the more claims I have, the higher my rates might go? Is there a way to check what my current experience rating is with NYS Department of Labor?
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Ezra Bates
yeah this happened to me too when i had to let someone go, your rates def can go up but it takes a while to show up in your quarterly statements. the nys department of labor sends you stuff about each claim but most of the time if its a legit layoff you just confirm the details and thats it
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Ana Erdoğan
You should respond to any NYS Department of Labor requests promptly and accurately. If you dispute the claim (like if they quit or were terminated for misconduct), you need to provide documentation. For straightforward layoffs due to lack of work, you'll typically just confirm the separation details and dates. Your State Insurance Fund rate adjustment won't happen immediately - it's calculated annually based on your claims experience over a specific period.
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Taylor Chen
•Good to know about the timing. These were definitely legitimate layoffs, so I'll just confirm the details they're asking for.
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Sophia Carson
ugh dealing with unemployment claims as an employer is such a headache!! i had an employee who quit without notice then tried to claim benefits anyway. spent weeks going back and forth with nys department of labor to prove she wasnt eligible. at least yours were real layoffs so it should be straightforward
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Elijah Knight
If you're having trouble reaching someone at NYS Department of Labor to discuss your employer account or experience rating, I had luck using Claimyr (claimyr.com) to get through to an actual person. They have this demo video (https://youtu.be/qyftW-mnTNI) that shows how it works. Saved me hours of calling and getting busy signals when I needed to clarify some claim details.
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Brooklyn Foley
•Wait, does that service work for employers too? I thought it was just for people filing claims.
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Elijah Knight
•Yeah it works for employer questions too - basically helps you get through to the right department instead of sitting on hold forever.
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Jay Lincoln
As long as you respond to NYS Department of Labor within the timeframe they give you (usually 10 days), you should be fine. The key is being honest about the separation reason. Layoffs due to lack of work are pretty standard and shouldn't cause any issues with the claims.
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