NYS Department of Labor unemployment benefits - who actually pays if I file for unemployment?
I'm thinking about filing for unemployment after getting laid off from my warehouse job last week. My manager mentioned something about it affecting the company's rates but I'm confused about how this all works. Does the money come from NYS Department of Labor directly or does my old employer have to pay it? I don't want to cause problems for them since they were pretty decent to me, but I also need to pay my bills. Can someone explain who actually pays when you file for unemployment benefits?
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PaulineW
The unemployment benefits you receive come from the New York State unemployment insurance fund, which is funded by taxes that employers pay to NYS Department of Labor. Your employer doesn't directly pay your weekly benefits - they pay into the system through unemployment insurance taxes based on their experience rating. When you file a claim, NYS Department of Labor pays you from this fund.
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Maxwell St. Laurent
•So my employer won't get a bill for my specific claim amount? That's a relief, I was worried about causing them financial problems.
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Annabel Kimball
Your employer's unemployment tax rate can go up if they have a lot of claims filed against them over time, but it's not like they get charged for each individual claim. The NYS Department of Labor calculates their experience rating annually based on their claim history. One claim usually won't make a huge difference unless it's a really small company.
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Chris Elmeda
•exactly this! my boss was always worried about UI claims but honestly most established companies budget for this stuff anyway
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Jean Claude
Just to add some detail - employers pay both state and federal unemployment taxes. In New York, they pay the State Unemployment Tax (SUI) to NYS Department of Labor and Federal Unemployment Tax (FUTA) to the IRS. The money for your weekly benefits comes from the state fund. If you were laid off through no fault of your own, you have every right to file and shouldn't feel guilty about it. That's exactly what the system is designed for.
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Maxwell St. Laurent
•Thank you, that makes me feel better about filing. I was laid off due to budget cuts, so it definitely wasn't my fault. I'll start my application on the NYS Department of Labor website today.
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Charity Cohan
wait so the employer doesn't pay anything when I file??? then why was my old boss always telling people not to file for unemployment when they got fired?
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PaulineW
•Some employers try to discourage filing because too many claims can raise their tax rates over time. But legally, they can't prevent you from filing if you're eligible. If you were fired for misconduct, that's different - but if you were laid off or fired without cause, you should definitely file.
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Josef Tearle
I had trouble getting through to NYS Department of Labor when I needed to ask about this exact question last year. Kept getting busy signals and the online chat was always unavailable. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo showing how it works - https://youtu.be/qyftW-mnTNI. Made the whole process way less stressful than trying to call for hours.
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Maxwell St. Laurent
•That sounds helpful! I'll keep that in mind if I run into issues with my claim. Hopefully the online application goes smoothly though.
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Shelby Bauman
good for you for filing! too many people skip it because they feel bad for their employer but thats literally what unemployment insurance is FOR. your employer has been paying into this system specifically so you can get benefits if you lose your job
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CosmicCowboy
I went through this same situation a few months ago when I got laid off from my retail job. Like others said, the benefits come from the state fund that all employers pay into - your old company won't get a direct bill for your benefits. What really helped me was understanding that unemployment insurance is literally designed for situations like yours where you lose your job through no fault of your own. Don't feel guilty about using a system that you and your employer have been paying into! The application process with NYS Department of Labor was pretty straightforward once I got started. Good luck with everything!
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