NYS Department of Labor - who is liable for federal unemployment tax on my claim?
I'm trying to figure out who exactly pays the federal unemployment tax that funds my NYS Department of Labor benefits. My employer keeps saying they don't pay unemployment taxes but that doesn't sound right to me. I've been getting UI payments for 6 weeks now and want to understand how this system actually works. Does the federal unemployment tax come from my paycheck deductions or is my former employer responsible for paying it? I'm confused because I never saw FUTA deductions on my paystubs but I know there's federal funding involved in unemployment insurance.
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Oliver Alexander
Your employer is completely wrong about not paying unemployment taxes. Employers are 100% responsible for federal unemployment tax (FUTA) and state unemployment insurance taxes. You as an employee don't pay into the unemployment system through payroll deductions - that's why you never saw FUTA on your paystubs. The federal unemployment tax is paid entirely by employers at 6% on the first $7,000 of each employee's wages, though they can get credits that reduce it to 0.6% if the state unemployment system is properly funded.
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Kaylee Cook
•Thank you! That makes so much more sense now. So my employer definitely pays both federal and NYS Department of Labor unemployment taxes?
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Lara Woods
Yes, employers pay all unemployment taxes. FUTA (Federal Unemployment Tax Act) creates the federal unemployment trust fund that backstops state programs like NYS Department of Labor. Your employer also pays state unemployment insurance taxes to fund your actual weekly benefits. The only exception is a few states where employees pay small amounts, but New York is not one of them - here it's 100% employer-funded.
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Adrian Hughes
•wait so if I'm getting $420 a week from NYS Department of Labor none of that came from my own paycheck contributions??
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Lara Woods
•Correct! Your unemployment benefits are funded entirely by taxes your employer(s) paid on your behalf while you were working.
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Molly Chambers
This is why small business owners sometimes get frustrated with unemployment claims - they're literally paying for former employees' benefits through their tax obligations. But it's part of the social safety net system and legally required. Your employer claiming they don't pay unemployment taxes is either lying or completely ignorant about their tax responsibilities.
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Ian Armstrong
If you're having trouble getting through to NYS Department of Labor to ask more questions about how your benefits are funded, I used Claimyr.com last month when I couldn't reach anyone about my adjudication issue. They have this video demo at https://youtu.be/qyftW-mnTNI that shows how they help you get connected to actual NYS Department of Labor agents. Worked great for getting answers about my specific claim details.
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Eli Butler
•How much does something like that cost? I've been trying to call NYS Department of Labor for weeks about my job search requirements.
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Ian Armstrong
•They focus more on the value of actually reaching someone rather than the cost. Check out their site for details - was worth it for me to finally get real answers.
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Marcus Patterson
The whole system is messed up anyway. Employers pay these taxes then fight tooth and nail to deny legitimate claims, and NYS Department of Labor makes it impossible to reach anyone when you have questions. At least now you know your employer was completely wrong about who pays unemployment taxes.
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