NYS Department of Labor benefits affected by federal unemployment tax act changes?
I'm trying to understand how the federal unemployment tax act impacts my NYS Department of Labor claim. My employer mentioned something about FUTA when I got laid off last month, and now I'm wondering if this affects my weekly benefits or eligibility somehow. I've been getting my regular UI payments but I'm confused about whether there are federal taxes being taken out or if this is something separate entirely. Does anyone know how the federal unemployment tax act relates to what we receive from NYS Department of Labor? I don't want to mess up my taxes next year by not understanding this properly.
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Diego Rojas
The federal unemployment tax act (FUTA) is what your employer pays into the system, not something that directly affects your weekly claim amount. NYS Department of Labor benefits are funded through a combination of federal and state employer taxes. FUTA is the federal portion that employers pay - it's 6% on the first $7,000 of wages but most employers get credits that reduce it to 0.6%. This helps fund the unemployment insurance system but doesn't impact your individual payments.
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Chloe Martin
•So this is just background funding stuff and doesn't change what I receive each week? That makes sense, I was worried there was some complication with my claim.
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Anastasia Sokolov
wait i thought FUTA was something we had to pay back?? my cousin said something about federal unemployment taxes when she filed her taxes last year after being on unemployment
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Diego Rojas
•No, FUTA is paid by employers, not claimants. Your cousin might have been talking about income taxes on unemployment benefits. NYS Department of Labor benefits are taxable income, so you can choose to have federal taxes withheld from your weekly payments or pay them when you file your tax return.
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StarSeeker
I had the same confusion when I first filed! The federal unemployment tax act is essentially the federal government's way of helping states maintain their unemployment systems. New York gets federal funding that helps supplement what the state collects from employers. As a claimant, you don't need to worry about FUTA itself - just focus on whether you want taxes withheld from your weekly payments. You can change this setting in your my.ny.gov account under payment preferences.
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Sean O'Donnell
•This is super helpful! I've been trying to reach NYS Department of Labor to ask about tax withholding but their phone lines are always busy. Have you had any luck getting through to them recently?
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Zara Ahmed
•I actually used a service called Claimyr (claimyr.com) to get through to a NYS Department of Labor agent about my tax withholding questions. They have this system that waits on hold for you and connects you when an agent is available. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of trying to call myself and actually got my withholding set up properly.
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Luca Esposito
honestly the whole tax situation with unemployment is confusing as hell. between FUTA and state taxes and federal taxes on benefits its like they want us to mess it up
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Diego Rojas
•I get the frustration, but once you understand the basics it's not too bad. FUTA = employer pays it, not your problem. Income taxes on benefits = your choice to withhold or pay later. That's really all you need to know as a claimant.
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