NYS Department of Labor unemployment costs - how does unemployment work for the employer?
I'm a small business owner in NY and trying to understand how the unemployment system actually works from our side. When we have to lay someone off, what exactly happens with NYS Department of Labor? Do we pay into some fund continuously or only when claims are filed? One of my former employees just filed for UI and I got some paperwork asking about their separation. I'm confused about the whole process and what this means for my business costs going forward. Can someone explain how does unemployment work for the employer in New York?
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Isabella Santos
As an employer in NY, you pay unemployment insurance taxes quarterly to NYS Department of Labor based on your payroll. It's called State Unemployment Tax (SUT). The rate depends on your experience rating - basically how many claims have been filed against your account. New employers start at 4.1% on the first $12,300 of each employee's wages. When someone files for unemployment, NYS Department of Labor sends you a separation notice to verify the reason they left. Your response affects whether the claim gets approved and impacts your future tax rate.
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Malik Davis
•So we're already paying into this system even when no one files claims? I had no idea. What happens if I don't respond to that separation notice they sent?
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Ravi Gupta
You definitely want to respond to any NYS Department of Labor notices about unemployment claims. If you don't respond within the deadline (usually 10 days), they might approve the claim by default even if the person quit or was fired for misconduct. This could raise your unemployment tax rate for years. The system is designed so employers with fewer claims pay lower rates, so it's worth fighting invalid claims.
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GalacticGuru
•This happened to us last year - we missed the deadline on responding and ended up paying higher rates even though the employee was terminated for attendance issues. Cost us thousands.
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Freya Pedersen
yeah the employer side is rough... we had someone file after we let them go for stealing and NYS Department of Labor still approved it initially. Had to go through the whole appeal process to get it overturned. The paperwork is endless and they don't make it easy for small businesses
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Malik Davis
•That's exactly what I'm worried about. Did you have to provide evidence during the appeal? How long did that take?
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Omar Fawaz
If you're struggling to get through to NYS Department of Labor about employer issues, I had success using a service called Claimyr (claimyr.com) to actually reach someone. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. It's mainly for claimants but I used it when I couldn't get answers about a separation dispute and needed to speak with someone urgently. Way better than sitting on hold for hours.
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Isabella Santos
•Interesting - I didn't know they helped with employer calls too. The NYS Department of Labor phone system is definitely frustrating when you need quick answers about claim disputes.
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Chloe Anderson
The whole system seems designed to favor employees over employers tbh. We document everything now - attendance, performance issues, policy violations. Because when someone files for unemployment after you fire them, you better have good documentation or NYS Department of Labor will side with the employee every time. It's like guilty until proven innocent.
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Diego Vargas
•Documentation is key! We learned this the hard way. Now we require written warnings and keep detailed records of all disciplinary actions.
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