NYS Department of Labor unemployment claims affecting my small business - how does this work?
I own a small restaurant in Albany and just had to lay off 8 employees due to slow winter business. They're all filing for unemployment with NYS Department of Labor and I'm getting notices about benefit charges. I'm confused about how unemployment affects businesses - do I pay for their benefits? Will this impact my unemployment insurance rates? I've never dealt with this before and the paperwork from NYS Department of Labor is overwhelming. Anyone know how this process works from the employer side?
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Mohamed Anderson
Yes, as an employer you pay into the unemployment insurance system through quarterly taxes. When your former employees collect benefits, those costs get charged back to your account which affects your future UI tax rate. The more claims filed against your business, the higher your rate becomes. NYS Department of Labor calculates this based on your 'experience rating' - basically your history of layoffs and benefit claims.
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Selena Bautista
•So if I have to do seasonal layoffs every winter, my rates will keep going up? That seems unfair for seasonal businesses.
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Ellie Perry
Your unemployment tax rate is based on several factors including your payroll size, industry type, and claim history. For restaurants, seasonal fluctuations are pretty common so NYS Department of Labor does factor that into the calculations somewhat. You should receive quarterly statements showing your account balance and any benefit charges. Make sure to respond to any separation notices they send you - if you don't contest invalid claims within 10 days, you're stuck paying for them.
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Landon Morgan
•This is why I always document everything when I have to let people go. Had an employee try to claim they were fired for no reason when they were actually terminated for attendance issues.
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Teresa Boyd
ugh the paperwork is the worst part! I run a landscaping company and deal with this every fall/spring. The notices come so fast and if you miss responding to one separation notice your rates go through the roof
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Lourdes Fox
•If you're having trouble keeping up with NYS Department of Labor employer notices and need to speak with someone about your account, I had good luck using a service called Claimyr (claimyr.com). They help you get through to actual agents instead of sitting on hold forever. There's a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Made dealing with my UI tax issues much easier.
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Bruno Simmons
Wait so if my employees collect unemployment that comes out of MY pocket essentially? I thought the government paid for that stuff. This is news to me and not good news
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Mohamed Anderson
•Not directly out of your pocket, but yes, employers fund the unemployment system through payroll taxes. It's like insurance - you pay premiums (UI taxes) and when claims are filed, your future premiums can increase based on your claim history.
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Landon Morgan
Just make sure you're classifying workers correctly. Had a friend who got hit with huge penalties because NYS Department of Labor reclassified some of his 1099 contractors as employees retroactively. That opened up a whole can of worms with back taxes and benefit eligibility.
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