NYS Department of Labor unemployment wages - who pays unemployment wages and how does it work?
I'm getting ready to file for unemployment for the first time and I'm confused about who actually pays unemployment wages. Is it my former employer who pays me directly, or does NYS Department of Labor send the money? My friend said something about employers paying into a fund but I don't really understand how the whole system works. Also wondering if there's a difference between who pays regular UI versus things like standby status. Can someone explain this to me?
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Lucas Bey
NYS Department of Labor pays your unemployment benefits directly, not your former employer. Your employer contributes to the unemployment insurance fund through payroll taxes, but they don't pay you individually. When you file your weekly claims, the money comes from the state unemployment trust fund that's funded by employer contributions. The amount you receive is based on your previous wages but it's calculated and distributed by NYS Department of Labor.
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Charlotte Jones
•Oh that makes sense! So my old boss doesn't have to write me checks or anything. Thanks for clearing that up.
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Harper Thompson
yeah its the state that pays you but ur employer had to pay into the system the whole time you worked there
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Caleb Stark
To add some detail - employers pay unemployment insurance taxes (called SUTA in NY) based on their payroll and experience rating. The rate they pay depends on how many former employees have filed claims. So while NYS Department of Labor sends you the actual unemployment wages, your employer has been contributing to fund the system. It's similar to how Social Security works - employers pay in, government pays out.
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Jade O'Malley
•Wait so does that mean if I file for unemployment it affects my employer's tax rate? I don't want to cause problems for them.
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Caleb Stark
•It can affect their experience rating over time, but you shouldn't let that stop you from filing if you're eligible. You paid into this system through your work too.
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Hunter Edmunds
I had such a hard time getting through to NYS Department of Labor when I needed to ask about my benefit calculation. Spent weeks calling and either getting busy signals or being disconnected. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person at NYS Department of Labor. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really helped me understand exactly how my unemployment wages were being calculated.
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Ella Lewis
•Never heard of that service but anything that helps get through to NYS Department of Labor sounds useful. Their phone system is terrible.
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Andrew Pinnock
The whole system is so confusing. I thought my employer was supposed to pay me unemployment when I got laid off but then I had to file with the state instead. And don't even get me started on trying to figure out the difference between regular unemployment and standby - who pays for what in those situations?
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Lucas Bey
•Standby unemployment is still paid by NYS Department of Labor, just like regular UI. The difference is in the eligibility requirements and job search obligations, not who pays the benefits.
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