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Drake

NYS Department of Labor unemployment taxes - employer withholding confusion about federal requirements

I'm trying to understand something about unemployment taxes that's been bugging me. I always thought most employers are required to withhold federal unemployment taxes from employee earnings, but my paycheck stubs from my last job never showed FUTA deductions. Now that I'm filing for unemployment with NYS Department of Labor, I'm worried this might affect my claim. Should I be concerned that my employer wasn't taking these taxes out of my pay? Will this impact my UI benefits?

Sarah Jones

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Actually, you've got this backwards. Employers pay FUTA (Federal Unemployment Tax Act) taxes TO the government, not FROM your paycheck. You shouldn't see FUTA deductions on your pay stub because it's an employer-paid tax, not an employee-paid tax. This won't affect your NYS Department of Labor claim at all - your eligibility is based on your work history and wages earned, not on what taxes were withheld.

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Drake

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Oh wow, I had no idea! So the employer pays unemployment taxes on my behalf, but it doesn't come out of my actual wages? That makes so much more sense now.

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yeah this is super confusing stuff. i thought the same thing when i first filed UI. your employer pays state and federal unemployment taxes but you dont see it on your paystub because its not your money being taken out

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Emily Sanjay

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To clarify further - FUTA is paid entirely by employers at 6% on the first $7,000 of each employee's wages (though most get credits that reduce this to 0.6%). NYS Department of Labor also requires employers to pay state unemployment insurance taxes. These fund the unemployment insurance system, but they're business expenses, not payroll deductions. Your weekly claim certification process with NYS Department of Labor will ask about wages earned, not taxes paid.

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Jordan Walker

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This is really helpful! I was worried about the same thing when I started my claim process. It's reassuring to know this doesn't affect our benefits.

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Natalie Adams

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I had similar confusion when dealing with NYS Department of Labor representatives about my claim status. If you need to speak with someone directly about your specific situation, I found a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really saved me hours of trying to call the regular NYS Department of Labor number.

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Drake

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Thanks for the suggestion! I might need that if I run into issues with my weekly claims.

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THE WHOLE TAX SYSTEM IS SO CONFUSING!!! Why don't they teach this stuff in school? I've been working for 10 years and still learning new things about how unemployment works. At least now I know my employer was doing things correctly.

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