How much does unemployment insurance cost in NY - confused about deductions
I just started a new job and I'm looking at my paystub trying to understand all the deductions. I see something for unemployment insurance but I'm confused about how much this actually costs me as an employee. My coworker said employees don't pay anything for UI in New York but I swear I see it on my paystub. Can someone explain how unemployment insurance cost works? Is this something that gets taken out of my paycheck or does my employer pay it all?
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Giovanni Martello
In New York, employees DO pay a small amount for unemployment insurance. It's 0.5% of your wages up to the first $10,900 you earn each year. So the maximum you'd pay is about $54.50 per year. Your employer pays a much larger share - they pay varying rates based on their experience rating, but it's significantly more than what employees contribute.
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Grant Vikers
•Thank you! That makes sense now. I was seeing like $12 taken out per paycheck so that adds up to around that amount for the year.
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Savannah Weiner
yeah i think i pay like 50 bucks a year or something, its not much compared to what comes out for taxes and health insurance
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Levi Parker
The employee contribution is minimal compared to what employers pay. Employers can pay anywhere from 2.1% to 9.9% of wages depending on their unemployment claims history. New employers start at around 4.1%. The NYS Department of Labor sets these rates annually based on the employer's experience rating - companies with more former employees who filed claims pay higher rates.
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Libby Hassan
•Wow I had no idea employers paid that much! No wonder some companies are so strict about firing people.
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Hunter Hampton
If you're having trouble getting answers about your specific situation or need to verify your unemployment insurance contributions with NYS Department of Labor, I had success using a service called Claimyr (claimyr.com). They help you get through to actual agents when the phone lines are busy. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped when I needed to check my benefit eligibility last year.
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Grant Vikers
•Thanks for the suggestion! Right now I just needed to understand the deduction but I'll keep that in mind if I ever need to file a claim.
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Sofia Peña
Just remember that even though you're paying into unemployment insurance, there's no guarantee you'll actually get benefits if you need them. The NYS Department of Labor can be really picky about eligibility requirements and they seem to find reasons to deny claims all the time.
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Giovanni Martello
•That's not entirely accurate. Most people who lose their job through no fault of their own do qualify for benefits. The key is understanding the requirements - you need sufficient work history and wages, and you can't be disqualified for misconduct or voluntary quit without good cause.
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