NYS Department of Labor employer tax rate increases - how can employers keep their unemployment tax rate low?
My small business just got notice that our NYS Department of Labor unemployment tax rate is going up next year and I'm trying to understand what we can do to keep costs down. We've had a few employees file for unemployment over the past two years and I'm wondering if there are specific things employers can do to maintain lower rates with NYS Department of Labor. Are there best practices for managing unemployment claims or ways to challenge questionable claims? Any advice from other business owners dealing with this?
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Cameron Black
The NYS Department of Labor uses an experience rating system, so your tax rate is directly tied to the number and amount of unemployment claims filed by your former employees. Key strategies: 1) Document performance issues thoroughly before terminating for cause, 2) Contest any fraudulent or questionable claims promptly, 3) Maintain detailed records of voluntary quits vs involuntary separations, and 4) Consider offering severance packages that include agreements about unemployment filing timing.
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Jessica Nguyen
•This is really helpful! How do you actually contest a claim with NYS Department of Labor? We had someone quit but then file for unemployment anyway.
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Isaiah Thompson
honestly the system is rigged against small businesses. i've contested obvious fraud cases and NYS Department of Labor still approved the claims. they don't care about employers at all, just want to pay out benefits and stick us with the bill.
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Cameron Black
•I understand the frustration, but contesting does work if you have proper documentation. You need to respond within 10 days of the initial notice and provide specific evidence about the separation reason.
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Ruby Garcia
We use a third party administrator to help manage our unemployment claims and it's been worth every penny. They handle all the paperwork and know exactly what documentation NYS Department of Labor needs to contest questionable claims. Our rate has actually gone down over the past three years.
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Victoria Jones
•That sounds expensive though? What kind of costs are we talking about for a company with maybe 15-20 employees?
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Alexander Evans
Make sure you're classifying separations correctly! If someone is fired for misconduct, you need to document it properly or NYS Department of Labor will treat it as a layoff. Also, voluntary quits don't count against your rate unless the person can prove they quit for good cause.
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Evelyn Martinez
One thing that really helped us was implementing better hiring practices. Checking references more thoroughly and having a longer probationary period reduced our turnover, which obviously helps with the unemployment claims.
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Isaiah Thompson
•yeah but then you still get stuck when the economy tanks and you have to lay people off through no fault of your own
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Jessica Nguyen
If you're having trouble reaching NYS Department of Labor to get information about contesting claims or understanding your tax rate calculation, I found this service called Claimyr (claimyr.com) that helps get through to actual agents. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of being on hold when I needed to contest a questionable claim last year.
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Victoria Jones
•Thanks! The phone system for employers is just as bad as it is for claimants apparently.
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