Is unemployment insurance mandatory for all NY workers? Confused about coverage requirements
I just started a new job at a small company in Brooklyn and I'm trying to understand if unemployment insurance is mandatory. My boss mentioned something about it being automatic but I want to make sure I understand what this means for me as an employee. Do I have to pay into it? Is it something that happens automatically through payroll? I've never really thought about this before but want to be prepared in case something happens to my job. Can someone explain how this works in New York?
12 comments
Join the conversation
Emily Sanjay
Yes, unemployment insurance is mandatory in New York for most employees. You don't pay into it directly - your employer pays unemployment insurance taxes to NYS Department of Labor on your behalf. As long as you're working for a covered employer (which includes most businesses), you're automatically building eligibility for unemployment benefits. You need to earn a certain amount in wages during your base period to qualify for benefits if you become unemployed.
0 coins
Sebastian Scott
•That's good to know! So I don't see any deductions from my paycheck for this? And what's a base period exactly?
0 coins
Jordan Walker
Your employer handles all the unemployment insurance contributions - you won't see it as a payroll deduction like you do with Social Security or Medicare. The base period is usually the first four of the last five completed calendar quarters before you file for unemployment. So if you file in 2025, they'd look at your wages from early 2024 through late 2024 to determine your benefit amount.
0 coins
Natalie Adams
•this is confusing af... so if I worked part time last year but full time this year, which wages count?
0 coins
Emily Sanjay
•They use whichever base period gives you the higher benefit amount, so both your part-time and full-time wages would be considered. NYS Department of Labor automatically calculates this when you apply.
0 coins
Elijah O'Reilly
Just went through this whole process last month when I got laid off. The system is pretty straightforward - as long as you've been working and your employer has been paying their unemployment taxes, you should be covered. I had trouble getting through to NYS Department of Labor on the phone to verify my eligibility though. Kept getting busy signals and getting hung up on after waiting forever.
0 coins
Amara Torres
•I had the same problem trying to reach them! If you need to talk to someone at NYS Department of Labor, I found this service called Claimyr (claimyr.com) that actually gets you through to a real person. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of calling and getting nowhere.
0 coins
Elijah O'Reilly
•Thanks for that tip! I'll check it out if I need to call them again about anything.
0 coins
Olivia Van-Cleve
The whole unemployment system feels like such a bureaucratic nightmare sometimes. Even though it's supposedly mandatory coverage, they make it SO HARD to actually get benefits when you need them. All these rules about job searches and weekly claims... but yeah, to answer your question - it's automatic as long as you're working for a legitimate employer.
0 coins
Mason Kaczka
•tell me about it!! filed 3 weeks ago and still waiting for my first payment
0 coins
Natalie Adams
wait so what if you work gig jobs or are self employed? still covered?
0 coins
Jordan Walker
Independent contractors and gig workers typically aren't covered under regular unemployment insurance. You'd need to look into other programs. Traditional employees at most companies are automatically covered though - that's the mandatory part the original poster was asking about.
0 coins