NYS Department of Labor unemployment tax rate calculation - confused about my paystub deductions
I'm looking at my paystub and trying to understand the unemployment tax rate being deducted. My employer shows different amounts each week and I can't figure out how NYS Department of Labor calculates this. Is there a set percentage or does it change based on your salary? I make about $52,000 annually and some weeks they take out $12, other weeks it's $8. My HR department couldn't give me a clear answer when I asked them about it last week.
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Alexis Robinson
The unemployment tax (SUI/SDI) for employees in New York is 0.5% of your gross wages up to the wage base limit, which is $13,000 for 2025. So once you hit that $13,000 threshold during the year, you stop paying unemployment tax for the rest of the year. That's why your deductions vary - it depends on how much you've already contributed year-to-date.
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Ashley Adams
•Oh that makes total sense! So I probably hit the $13,000 limit already since we're halfway through the year. Thanks for explaining the wage base - I had no idea there was a cap.
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Aaron Lee
yeah i noticed this too on my pay stub but didnt think much about it. good to know theres actually a reason behind the different amounts each week
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Chloe Mitchell
Just to clarify, employees pay the State Unemployment Insurance (SUI) portion, but employers pay a separate unemployment tax rate to NYS Department of Labor that varies based on their experience rating. Your rate as an employee is fixed at 0.5%, but your employer's rate can range from 2.1% to 9.9% depending on their layoff history and other factors.
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Michael Adams
•Wait, so employers pay WAY more than we do? That seems backwards since we're the ones who would potentially collect unemployment benefits.
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Chloe Mitchell
•Yes, employers fund most of the unemployment system. The employee contribution is relatively small compared to what employers pay into the NYS Department of Labor trust fund.
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Natalie Wang
I've been dealing with payroll issues lately and had to call NYS Department of Labor multiple times about tax questions. Getting through to an actual person was impossible until I found this service called Claimyr at claimyr.com. They have this demo video (https://youtu.be/qyftW-mnTNI) that shows exactly how they help you reach NYS Department of Labor agents by phone. Saved me hours of calling and getting disconnected. Really helped me get clarity on our company's unemployment tax obligations.
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Noah Torres
The whole unemployment tax system is confusing honestly. Between state and federal rates and all these different wage bases, no wonder HR departments can't explain it properly. At least now I know why the deduction stops partway through the year.
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Mohammad Khaled
This is really helpful information! I've been wondering about the same thing with my paystub. One thing I'd add is that you can usually find your year-to-date unemployment tax contributions on your paystub too, which helps you track how close you are to that $13,000 wage base limit. Once you hit it, you'll see the deduction disappear completely for the rest of the year. It's actually kind of nice to get that little "raise" when you stop paying into it!
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Chloe Davis
•That's a great point about checking the year-to-date totals! I never thought to look at that section of my paystub before. It would definitely help me keep track of when I'll hit that cap. Do you happen to know if the $13,000 wage base changes every year or has it been the same for a while?
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