NYS Department of Labor unemployment insurance - who pays unemployment insurance and how does it work?
I'm confused about who actually pays for unemployment benefits in New York. My coworker said employers pay into the system but I thought it came from taxes? I'm about to file my first claim after getting laid off from my retail job and want to understand where the money comes from. Does this affect my eligibility somehow? Also wondering if there's a limit to how much the system pays out total.
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Daniel White
Your employer pays unemployment insurance taxes to NYS Department of Labor, not you. It's called SUTA (State Unemployment Tax Act) and employers pay based on their payroll and experience rating. You as an employee don't pay into the UI system directly - it's funded entirely by employer contributions. This doesn't affect your eligibility at all, you earned these benefits through your work history.
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Abigail Patel
•That makes sense! So when I worked there for 2 years, my employer was paying into the system the whole time on my behalf?
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Nolan Carter
wait i thought we paid unemployment taxes too? my paystub shows all these deductions
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Daniel White
•You're probably seeing FICA taxes (Social Security and Medicare) on your paystub, not unemployment insurance. UI is paid only by employers in New York.
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Natalia Stone
The system works pretty well actually. Employers with higher turnover rates pay higher unemployment insurance rates, so there's an incentive to keep workers employed. NYS Department of Labor adjusts the rates annually based on the trust fund balance and economic conditions. The fund is designed to be self-sustaining through these employer contributions.
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Tasia Synder
•Makes sense why some employers fight unemployment claims so hard then - it affects their rates!
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Selena Bautista
If you're having trouble reaching NYS Department of Labor to get more details about your claim, I had good luck with a service called Claimyr (claimyr.com). They help you get through to actual agents when the phone lines are swamped. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me understand my claim status better.
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Abigail Patel
•Thanks, I'll check that out if I run into problems filing my claim!
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Mohamed Anderson
Been paying into this system for 15 years as a small business owner and the rates keep going up. At least now I understand why - supporting people like you when they need it most. Good luck with your claim!
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