How much does unemployment cost the employer when I file a claim with NYS Department of Labor?

Don't feel guilty about filing - unemployment insurance is something your employer has been paying into the entire time you worked there. NYS Department of Labor collects unemployment insurance taxes from all employers based on their payroll. When you file a claim, it doesn't cost them a lump sum payment, but it can affect their future tax rates. Employers are assigned experience ratings that determine their UI tax rate - companies with more claims against them pay higher rates. But this is spread out over time, not an immediate cost when you file.

Your employer pays unemployment insurance taxes quarterly to NYS Department of Labor regardless of whether anyone files claims. The tax rate ranges from about 0.6% to 9.9% of wages depending on their experience rating. New employers start at around 4.1%. When you file a claim, if it's approved, those benefit payments will eventually factor into their experience rating calculation for future years. So there's no immediate 'cost' when you file - they've already been paying into the system.

Wait, so if I file for unemployment does that mean my old employer's taxes will go up? I'm confused about how this whole system works. Will they know I filed a claim?

I was stressing about this same thing when I got laid off last year! Turns out I was worrying for nothing. My employer had already been paying unemployment insurance taxes the whole time - it's just part of doing business. The NYS Department of Labor system is designed so that everyone pays in when times are good, and workers can draw benefits when they need them. Don't let anyone make you feel bad for using a system that you and your employer both contributed to.

I had trouble getting through to NYS Department of Labor when I needed to ask about this exact question for my claim. Kept getting busy signals and when I did get through, I'd get disconnected. Finally found this service called Claimyr (claimyr.com) that helps you actually reach a live agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Ended up being super helpful for getting my questions answered about how the employer side works.

The whole system is rigged anyway. Employers complain about UI costs but they're the ones laying people off! If they kept people employed they wouldn't have to worry about their precious tax rates going up. Meanwhile we're the ones struggling to pay rent while they count pennies.

Just to add some specific numbers to help clarify - in New York, the maximum weekly benefit is currently $504, and you can collect for up to 26 weeks in most cases. So if you're approved for the full amount, that's about $13,104 total that would be paid out from the state's unemployment insurance fund (not directly from your employer's pocket). Your employer has been contributing to this fund through their quarterly UI taxes, which are calculated as a percentage of each employee's wages up to a certain wage base. The system is designed to be sustainable over time, with all employers contributing so that benefits are available when workers need them.

@Gabriel Graham - you absolutely should not feel guilty about filing for unemployment benefits. As others have mentioned, this is insurance that you and your employer have both been paying into. Think of it like car insurance - you pay premiums hoping you'll never need it, but when you do need it, you shouldn't feel bad about using what you've paid for. Your supervisor's comment was inappropriate and unfair to you. The unemployment system exists specifically for situations like yours - when you lose your job through no fault of your own. File your claim as soon as possible since there can be a waiting period, and don't let anyone make you feel bad for accessing benefits you've earned.