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Seraphina Delan

NYS Department of Labor unemployment claim costs - how much does an unemployment claim cost an employer

I'm trying to understand how much my former employer has to pay when I file for unemployment benefits. I just got laid off from my restaurant job and filed with NYS Department of Labor but I'm curious about the employer side. Do they pay a flat fee per claim or is it based on my benefit amount? My old manager mentioned something about their UI tax rate going up but I don't really understand how that works. Anyone know the actual costs employers face when someone files an unemployment claim?

Jabari-Jo

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Employers don't pay a direct fee per claim filed. Instead, they pay into the UI system through quarterly payroll taxes based on their experience rating. When you file and get approved, it affects their future tax rates. The more claims charged to their account, the higher their UI tax rate becomes for future years. In NY, the base rate is around 2.5% but can go up to 9.9% of taxable wages depending on their claims history.

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So they don't pay my benefits directly? It comes from the fund they already paid into? That makes more sense than what my manager was saying.

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Kristin Frank

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yeah its not like they write a check for your unemployment lol. but if they have too many people filing claims their rates do go up which costs them more money over time

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Micah Trail

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The NYS Department of Labor uses an experience rating system. Employers with more claims against their account pay higher UI tax rates in subsequent years. For a new employer, they might pay the standard new employer rate of 4.1%. But if they have a lot of successful claims, that rate can increase significantly. Some employers try to contest claims to keep their rates down, which is why you sometimes see employers fighting legitimate unemployment claims even when they know the employee qualifies.

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Nia Watson

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This is exactly why my last job tried to say I quit when I was actually laid off! They didn't want their UI taxes to go up. Ended up having to appeal through NYS Department of Labor but I won.

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Jabari-Jo

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That's unfortunately common. Employers sometimes provide inaccurate separation information hoping to avoid a charge to their account. The good news is NYS Department of Labor investigates these cases during adjudication.

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I had trouble reaching someone at NYS Department of Labor when my employer contested my claim. After days of busy signals and getting disconnected, I found this service called Claimyr (claimyr.com) that helps you get through to unemployment agents. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped me get my adjudication issue resolved quickly instead of waiting weeks for a callback.

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Interesting, never heard of that before. Did it actually work for getting through to a real person?

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Yeah, got connected to an agent within a couple hours instead of spending days calling myself. Worth it when you need answers about your claim status.

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Marcus Marsh

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just went through this whole thing with my employer saying i was fired for misconduct when i was clearly laid off due to slow business. took forever to get through to nys department of labor but eventually they ruled in my favor. employers will try anything to avoid paying higher ui taxes

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Jabari-Jo

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To directly answer your original question - there's no specific dollar amount per claim. It depends on the employer's payroll size, their claims history, and current UI tax rates. A restaurant with high turnover might already be paying close to the maximum rate of 9.9%, while a stable company with few claims might pay the minimum. Your individual claim gets added to their experience rating calculation for future years.

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Thanks for the detailed explanation! Makes me feel less guilty about filing since they're not paying my benefits directly out of pocket.

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