NYS Department of Labor unemployment insurance tax deducted from my paycheck - is this normal?
I just started a new job in Albany and noticed something called 'unemployment insurance tax' being taken out of my paycheck. It's only like $2.50 but I'm confused because I thought unemployment insurance tax was something employers paid, not employees? My HR department wasn't very helpful when I asked about it. Is NYS Department of Labor supposed to be deducting this from workers or is my company making a mistake? I've worked in other states before and never saw this on my paystub.
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Demi Hall
Yes, this is completely normal in New York! Unlike most other states, NY requires employees to contribute a small percentage to the unemployment insurance fund through payroll deductions. The current rate is 0.5% of your wages up to the wage base (which is $12,300 for 2025). So if you're making decent money, you'll see this deduction every pay period until you hit that annual cap.
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Elliott luviBorBatman
•Oh wow, I had no idea! So this actually helps fund unemployment benefits for people who lose their jobs? That makes sense I guess, just surprised me since my last job in Pennsylvania didn't have this.
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Mateusius Townsend
yeah its totally normal, been seeing it on my paychecks for years. kinda annoying but whatever, least we know if we get laid off we can file with NYS Department of Labor
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Kara Yoshida
The employee contribution to unemployment insurance is actually pretty unique to New York, New Jersey, and Pennsylvania (though PA stopped doing it). It's separate from what your employer pays into the system. Think of it as insurance - you pay a little now so you have coverage if you need to file for unemployment benefits later. Your employer is also paying their own UI taxes to NYS Department of Labor on top of what gets deducted from your check.
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Philip Cowan
•Wait, so if I get fired can I still collect unemployment even though I was paying into it? I always thought you had to work a certain amount of time first.
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Kara Yoshida
•You still need to meet the work requirements - typically you need to have worked and earned wages in at least two quarters during your base period. The employee contribution doesn't change the eligibility rules, it just helps fund the system along with employer contributions.
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Caesar Grant
I remember being so confused about this when I moved here from Texas! Nobody explained it during my orientation and I thought payroll made an error. Called them like three times before someone finally told me it was a NY thing. If you're having trouble reaching NYS Department of Labor with questions about UI taxes or anything else, I found this service called Claimyr (claimyr.com) that helps you actually get through to agents on the phone. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of busy signals when I had to sort out some issues with my claim last year.
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Lena Schultz
The system is honestly pretty fair when you think about it. Employees and employers both contribute, and then when people lose their jobs through no fault of their own, there's money available for benefits. Much better than some states where it's harder to qualify or the benefits run out faster.
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Gemma Andrews
omg THANK YOU for asking this!! I've been wondering the same thing but felt dumb asking. new to NY and this paycheck deduction confused me so much
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