How much do companies pay for unemployment insurance in NY - does this affect my claim?
My employer just told me they're laying me off next month due to budget cuts, but they mentioned something about their unemployment insurance rates going up because of the layoffs. I'm trying to understand how this whole system works - do companies actually pay different amounts based on how many people they lay off? And more importantly, does this affect my ability to get benefits or how much I'll receive? I've never been on unemployment before and want to make sure I understand what to expect when I file with NYS Department of Labor.
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Austin Leonard
Yes, employers in NY pay unemployment insurance taxes and their rates can increase based on their layoff history. It's called an 'experience rating' system. However, this doesn't affect your eligibility or benefit amount at all. Your weekly benefit is calculated based on your earnings history, not what your employer pays. You'll get roughly half your average weekly wage up to the state maximum. The employer's rate is between them and NYS Department of Labor.
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Sophie Duck
•That's a relief! I was worried they might try to challenge my claim to keep their rates down. Good to know it won't affect my benefits.
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Anita George
Companies definitely pay more when they have more layoffs but like the previous poster said it wont effect you. my old company laid off like 30 people last year and their HR person was complaining about the increased costs but we all still got our unemployment just fine
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Abigail Spencer
If you're having trouble getting through to NYS Department of Labor to file your claim or check on anything, I had good luck with a service called Claimyr (claimyr.com). They help you get through to an actual agent when the phone lines are swamped. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me when I couldn't get through during peak filing times.
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Logan Chiang
•How does that work exactly? Do they just keep calling for you or something?
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Abigail Spencer
•They basically handle the calling and waiting part, then connect you when they get an agent on the line. Saved me hours of busy signals and holds.
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Isla Fischer
The unemployment tax system is such a scam anyway!!! Companies pay pennies compared to what they save by laying people off instead of keeping them employed. Meanwhile we're all scrambling to survive on half our wages. The whole system is designed to benefit employers not workers
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Miles Hammonds
•I get the frustration but at least the system exists. Without employer contributions there wouldn't be any unemployment benefits at all.
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Austin Leonard
Just to add some specifics - in NY the employer tax rate ranges from about 0.6% to 9.9% of their payroll depending on their experience rating. New employers start at around 3.4%. But again, this is totally separate from your claim process. Focus on gathering your employment documentation and be ready to file as soon as your last day of work happens.
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