NYS Department of Labor FUTA tax questions - employer responsibilities and unemployment benefits
I'm trying to understand how federal unemployment tax (FUTA) affects my situation with NYS Department of Labor benefits. My former employer is claiming they don't owe FUTA taxes on my wages, but I'm wondering if this impacts my eligibility for unemployment insurance. Does anyone know which statements about FUTA are actually true? I filed my claim three weeks ago and it's still pending, and now I'm worried there might be an issue with my employer's tax payments that could affect my benefits.
8 comments


Isaac Wright
FUTA is paid by employers, not employees, and it funds the federal portion of unemployment insurance programs. Your employer is required to pay FUTA tax on the first $7,000 of each employee's wages annually. This shouldn't directly affect your individual claim with NYS Department of Labor, but employers who don't pay their required taxes can face penalties.
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Yara Campbell
•So even if my employer messed up their FUTA payments, I should still be eligible for benefits through NYS Department of Labor? That's a relief.
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Maya Diaz
had the same worry when my claim was delayed last year. turns out the employer tax stuff is separate from whether you qualify for benefits. NYS Department of Labor will still pay you if you meet the other requirements
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Tami Morgan
•That's correct. The state unemployment insurance system operates independently of individual employer FUTA compliance issues. Your benefits are based on your work history and separation circumstances, not your employer's current tax status.
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Rami Samuels
Wait, I thought FUTA was something we paid as employees? I've been so confused about all these unemployment taxes. My adjudication has been going on for a month and nobody at NYS Department of Labor will explain anything to me!
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Haley Bennett
•I had trouble reaching NYS Department of Labor too until I found claimyr.com - they help you actually get through to an agent by phone. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me weeks of trying to call myself.
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Douglas Foster
The whole unemployment tax system is such a mess. Employers are supposed to pay FUTA but half of them don't even understand their obligations. Then when workers need benefits, we're the ones who suffer from their incompetence.
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Nina Chan
•agreed, went through this nightmare last year with my former company
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