How much do employers have to pay for unemployment insurance in NYS - confused about the rates
I'm trying to understand how much my employer actually pays into the unemployment system for each employee. I know it comes out of their pocket, not mine, but I'm curious about the actual dollar amounts. Is it a percentage of my salary? A flat fee? Does it change based on how many people they've had to lay off? My boss mentioned something about their 'experience rating' affecting costs but I don't really get how that works with NYS Department of Labor calculations.
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Mateo Gonzalez
Employers in NY pay unemployment insurance tax based on several factors. The base rate ranges from 0.6% to 9.9% of each employee's wages, but it's only applied to the first $12,300 of annual wages per employee in 2025. So maximum contribution per employee would be around $1,237 annually. The actual rate depends on their experience rating - companies that lay off more workers pay higher rates.
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MoonlightSonata
•Wait so if I make $50k a year, they only pay unemployment tax on the first $12,300 of that? That seems like a pretty small amount compared to what they're paying me total.
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Nia Williams
Your employer's experience rating is key here. New businesses start at 3.4% but it adjusts every year based on their history. Companies that rarely have unemployment claims can get down to 0.6%, while those with lots of layoffs can hit the maximum 9.9%. NYS Department of Labor reviews this annually and sends new rate notices.
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Luca Ricci
•makes sense why my old company was so reluctant to let people go even when business was slow - those higher rates really add up over time
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Aisha Mohammed
I work in HR and deal with this constantly. The wage base increases slightly each year - it was $11,800 in 2024 and went up to $12,300 for 2025. Plus there's a small additional fee for disability insurance. When you factor in everything, most stable employers end up paying around $300-600 per employee per year for unemployment coverage.
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MoonlightSonata
•That's actually way less than I thought it would be! Thanks for breaking down the real numbers.
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Ethan Campbell
Just dealt with this when I was trying to get through to NYS Department of Labor about my claim status. Kept getting disconnected after waiting on hold forever. Finally used this service called Claimyr (claimyr.com) that got me connected to an actual person in like 10 minutes. They have a video demo showing how it works: https://youtu.be/qyftW-mnTNI. Saved me hours of frustration.
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Yuki Watanabe
•Never heard of that but anything's better than sitting on hold for 3 hours just to get hung up on
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Carmen Sanchez
The whole system is set up to discourage layoffs which is smart policy. Higher experience ratings for companies that use the system more often means there's actually an incentive to keep people employed. Wish more states had rates that varied this much based on actual usage patterns.
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Malik Jackson
•Exactly! It's like a built-in incentive system. Companies that invest in keeping their workforce stable get rewarded with lower rates, while those that constantly hire and fire end up paying more. Makes the whole unemployment system more sustainable too since frequent users are contributing more to the fund they're drawing from.
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Mateo Rodriguez
This is really helpful information! I had no idea the rates could vary so much based on experience rating. One thing I'm still wondering about - does the size of the company affect these rates at all? Like would a small business with 5 employees pay the same percentage as a large corporation, assuming they have similar layoff histories? Also, is there any way for employees to actually see what rate their employer is paying, or is that confidential business information?
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Zainab Ismail
•Great questions! From what I understand, company size doesn't directly affect the percentage rate - it's really all about that experience rating based on layoff history. A small business and large corporation with identical unemployment claim patterns would pay the same rate. However, larger companies obviously pay more in total dollars since they have more employees. As for seeing your employer's rate, that's typically confidential between the employer and NYS DOL, though some companies might share it internally. You could always ask your HR department - they might be willing to give you a general idea of where your company stands.
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Nia Davis
One thing that might help clarify this for everyone - the NYS DOL actually publishes an annual rate schedule that breaks down how the experience rating system works. New employers start at that 3.4% rate mentioned earlier, but after they've been in business for a few years and have enough data, their rate gets recalculated based on their "reserve ratio" - basically comparing how much they've paid in versus how much their former employees have claimed. Companies with positive reserve ratios (paid in more than was claimed) get lower rates, while those with negative ratios pay higher rates. It's actually a pretty fair system when you think about it, since it makes the costs directly tied to actual usage.
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Giovanni Colombo
•This reserve ratio system is fascinating - it's basically like insurance where your premiums are based on your claim history! I'm curious though, for newer businesses that don't have much history yet, how long does it typically take before they move off that starting 3.4% rate? And do seasonal businesses or industries with naturally higher turnover (like hospitality or construction) face any special considerations, or do they just end up paying higher rates due to their business model?
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