NYS Department of Labor unemployment compensation funded by taxpayers - need clarification on my benefits
I'm really confused about something my neighbor said yesterday. She told me that when unemployment compensation was paid by the taxpayer, people like me are basically taking money from hardworking families. This has me really worried about collecting my benefits. I lost my job at a warehouse in December and have been getting weekly payments from NYS Department of Labor since January. Are my unemployment benefits really coming directly from taxpayer money? I don't want to be a burden on other families but I also need these benefits to pay rent and buy groceries while I'm job searching. Can someone explain how this actually works? I've been doing my weekly claims and job search requirements like I'm supposed to but now I feel guilty about it.
9 comments
Join the conversation
Elliott luviBorBatman
Your neighbor doesn't understand how unemployment insurance works. NYS Department of Labor benefits come from unemployment insurance taxes that employers pay on behalf of their workers - not from general taxpayer funds. When you were working, your employer was paying into this system specifically to provide benefits if you became unemployed. You earned this coverage through your work history. Don't feel guilty about collecting benefits you're entitled to.
0 coins
Rosie Harper
•Thank you so much for explaining this! I had no idea that employers were paying into unemployment insurance. That makes me feel a lot better about continuing my weekly claims.
0 coins
Demi Hall
yeah my boss always complained about paying unemployment taxes for all of us employees. its not coming from regular taxes like income tax or property tax. its a separate insurance system that employers fund
0 coins
Mateusius Townsend
•Wait, so when I was working my employer was automatically paying for my potential unemployment benefits? I never knew that was happening behind the scenes.
0 coins
Kara Yoshida
The unemployment insurance system is actually quite well-designed. Employers pay quarterly unemployment insurance taxes to NYS Department of Labor based on their payroll and their experience rating (how many former employees have filed claims). The money goes into a trust fund that's specifically earmarked for unemployment benefits. It's completely separate from general tax revenue that funds things like schools or roads. When you file your weekly claim, you're drawing from this dedicated insurance fund that was built up specifically for this purpose.
0 coins
Philip Cowan
•I had such a hard time getting through to NYS Department of Labor to ask about this exact question last month. Spent hours on hold trying to understand how the funding works. Finally used a service called Claimyr (claimyr.com) that helped me get connected to an actual agent who explained the whole system. There's even a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process so much easier than trying to call directly.
0 coins
Caesar Grant
Your neighbor sounds like one of those people who complains about everything without understanding how it actually works. Don't let her make you feel bad about collecting benefits you earned!
0 coins
Lena Schultz
omg this reminds me of when my aunt tried to tell me the same thing! She was like 'you're taking money from hardworking people' and I was like no aunt susan thats not how this works lol. some people just dont understand the system
0 coins
Rosie Harper
•Exactly! I think a lot of people just don't realize that unemployment is actually an insurance program that we all pay into through our employers.
0 coins