NYS Department of Labor unemployment who pays - confused about funding source
I'm getting ready to file for unemployment and my boss mentioned something about employers paying into the system. I'm confused about who actually pays unemployment benefits - is it the government, my employer, or what? My coworker said something about taxes but I don't really understand how it all works. Can someone explain who pays unemployment when you're collecting?
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Ethan Brown
Unemployment insurance is funded through payroll taxes paid by employers to the NYS Department of Labor. Your employer pays quarterly unemployment insurance taxes based on their payroll and claims history. The money goes into a state trust fund that pays out benefits to eligible claimants.
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CosmicCrusader
•So my employer is basically paying for my unemployment if I get laid off? That seems weird.
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Yuki Yamamoto
It's not just your specific employer paying for your specific claim. All employers in NY pay into the unemployment insurance system through the State Unemployment Tax Act (SUTA). The NYS Department of Labor pools all that money together and uses it to pay claims statewide. Your employer's tax rate can go up if they have a lot of former employees filing claims though.
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Carmen Ortiz
•THIS is why some employers fight unemployment claims so hard! They don't want their rates going up.
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Andre Rousseau
Had trouble reaching NYS Department of Labor to ask about this exact thing last month. Kept getting busy signals and disconnected calls. Finally used claimyr.com after seeing their demo video (https://youtu.be/qyftW-mnTNI) and got through to an agent who explained the whole funding system. Worth checking out if you need to talk to someone about your specific situation.
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Zoe Papadakis
•wait does that actually work? ive been trying to call for weeks about my claim status
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Jamal Carter
employees don't pay into unemployment in NY unlike some other states where they deduct it from your paycheck. its all employer funded here
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Ethan Brown
•Correct - New York is one of the states where employees don't contribute to unemployment insurance through payroll deductions.
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AstroAdventurer
My brother works in HR and he says their company pays like $500 per employee per year in unemployment taxes but it varies based on how many claims they've had. Companies that lay people off a lot pay way more.
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