How much of unemployment does the employer pay in NYS Department of Labor system?
I'm trying to understand how the unemployment system works in New York. My boss mentioned something about employers paying into unemployment when I got laid off last month, but I'm confused about the details. Does my former employer actually pay part of my weekly benefits? Or do they just pay into the system in general? I'm getting $385 per week right now and wondering if this comes directly from my old company or from some state fund. Also does this affect whether they might contest my claim? Thanks for any info!
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Andre Dupont
Employers don't pay your individual benefits directly. They pay unemployment insurance taxes (called SUTA - State Unemployment Tax Act) to the NYS Department of Labor throughout the year based on their payroll. This money goes into the state unemployment insurance fund, which is what pays your weekly benefits. Your specific claim doesn't come out of your employer's pocket, but their overall tax rate can go up if they have lots of former employees filing claims.
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AstroAdventurer
•That makes sense! So when they contest claims, it's because it affects their future tax rates?
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Zoe Papanikolaou
Yeah your employer pays quarterly taxes to fund unemployment insurance. The rate varies depending on how many claims their former employees have filed. New businesses start at around 4.1% of wages up to the wage base, but it can go higher if they have a lot of turnover. That's why some employers try to fight legitimate claims - they're worried about their experience rating going up.
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Jamal Wilson
•Wow I never knew that's why employers sometimes contest claims even when the layoff was legit
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Mei Lin
wait so my old job is still paying for my unemployment even though I got fired?? that seems weird, why would they have to pay if they let me go
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Andre Dupont
•They're not paying for YOUR specific benefits. They pay into the general fund that covers all unemployment claims in NY. It's like insurance - everyone pays in, and benefits come out when needed.
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Liam Fitzgerald
I had issues reaching someone at NYS Department of Labor to get clarification on how my claim was affecting my employer's account. The phone lines are always busy and I kept getting disconnected. I ended up using a service called Claimyr (claimyr.com) that helped me get through to an actual person. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped me understand the employer side of things when I talked to the agent.
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GalacticGuru
•Never heard of that service but might be worth trying, I've been trying to reach someone for weeks about my adjudication
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Amara Nnamani
The whole system is set up to screw over workers. Employers pay these tiny amounts compared to what we actually need to live on, then they fight our claims to keep their rates low. Meanwhile we're struggling to survive on $385 a week in this economy. The NYS Department of Labor should be on our side but they make it impossible to even talk to someone!
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Zoe Papanikolaou
•I get the frustration but the employer taxes do add up. For a company with 50 employees making $50k each, they could be paying $100k+ per year in unemployment taxes depending on their experience rating.
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Jamal Wilson
thanks for explaining this, I always wondered why my last boss seemed so stressed when people got laid off
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