How much does a company have to pay for unemployment - NYS Department of Labor rates?
I'm trying to understand what my employer pays into the unemployment system. My boss keeps complaining about how much it costs when people file for UI benefits and I'm curious about the actual numbers. Does anyone know what companies pay to NYS Department of Labor for unemployment insurance? Is it a percentage of payroll or a flat rate? I've been working at this small business for 2 years and wondering if that affects what they pay.
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Ev Luca
Employers pay unemployment insurance taxes to both federal and state levels. For NYS Department of Labor, the state unemployment insurance (SUI) rate varies based on the employer's experience rating. New employers typically start around 4.1% of taxable wages, but established employers can pay anywhere from 0.6% to 9.9% depending on their claim history. The taxable wage base for 2025 is $12,300 per employee.
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Lukas Fitzgerald
•So if someone makes $50k but only the first $12,300 is taxable for unemployment, that's what the percentage is calculated on?
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Avery Davis
yeah my old boss used to gripe about this all the time too. basically if your company has had a lot of people file for unemployment benefits the rate goes up. its called an experience rating or something like that
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Collins Angel
The experience rating system is designed to make employers with higher turnover pay more. If your boss is complaining about costs, it might mean your company has had several unemployment claims recently. Companies that rarely have claims can get rates as low as 0.6%, while those with frequent claims can pay up to 9.9%. There's also a federal unemployment tax (FUTA) of 6% but most employers get a credit bringing it down to 0.6%.
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Marcelle Drum
•This explains why my manager always acts weird when people quit or get laid off! I never realized it directly affects what the company pays to NYS Department of Labor.
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Tate Jensen
If you need specific information about your employer's unemployment tax rate, you'd have to contact NYS Department of Labor directly. Getting through to them can be frustrating with their phone system though. I actually used a service called Claimyr (claimyr.com) to reach an agent when I needed employment verification for my own claim. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out if you need to speak with someone at NYS Department of Labor about employer tax rates.
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Lukas Fitzgerald
•Thanks for the suggestion! I might not need to call since this is more curiosity than urgent need, but good to know there are options if NYS Department of Labor phone lines are busy.
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Adaline Wong
Your boss probably pays more than they realize because unemployment isn't the only payroll tax. There's also workers comp, disability insurance, and other stuff. The whole system is designed to make employers think twice before laying people off unnecessarily.
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Madeline Blaze
This is really helpful context! I had no idea the rates could vary so much based on claims history. It makes sense why some employers get nervous about layoffs - not just the immediate impact but the long-term cost implications. Do you know if there's a way for employees to find out what rate bracket their employer falls into, or is that considered private business information? I'm curious if my company's rate is on the higher end given how my boss reacts to these situations.
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Yara Khoury
•I don't think employer tax rates are public information - that would be confidential business data that NYS Department of Labor keeps private. Your best bet might be to ask your HR department directly, though they may not want to share those details. Some companies are more transparent about their operating costs than others. If your boss is really vocal about unemployment costs, they're probably paying on the higher end of that 0.6% to 9.9% range, which suggests your company has had multiple claims in recent years.
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