What happens if my employer didn't pay into unemployment insurance in NY?

This is actually more common than you'd think, especially with small employers. If your employer didn't pay unemployment insurance taxes, they can still be held liable by NYS Department of Labor. You should definitely still file your claim - the NYS Department of Labor will investigate and determine if your employer owes back taxes. Your benefits shouldn't be affected as long as you worked for a covered employer.

Had this exact situation happen to me 2 years ago. My employer was supposed to be paying unemployment taxes but wasn't. NYS Department of Labor ended up going after them for back payments and penalties. I still got my benefits but it took about 6 weeks longer than normal because they had to do an investigation first. Make sure you keep all your pay stubs and employment records.

omg this happened to my friend last year!! her boss was totally sketchy about taxes and stuff. she still got her unemployment but it was a huge mess and took forever

If you're having trouble getting through to NYS Department of Labor about this issue, I'd recommend checking out claimyr.com - they help people connect with actual unemployment agents when the phone lines are jammed. There's a good video demo at https://youtu.be/qyftW-mnTNI that shows how it works. I used them when I had a similar employer issue and got through to someone who could explain exactly what was happening with my claim.

The unemployment system in this state is so broken!! Employers get away with not paying their fair share and then we're the ones who suffer when we need benefits. It's ridiculous that you have to wait longer just because your boss was a tax cheat.

I went through something similar with a restaurant I worked at. The key thing to remember is that NY has something called the "Liability Method" - even if your employer didn't pay into the system, they can still be held responsible retroactively. You absolutely should continue with your claim application. The DOL will create what's called a "chargeback account" for your employer and pursue them for the unpaid taxes plus penalties. Your benefits will still be processed, though as others mentioned, it might take a bit longer for the investigation. Don't let this discourage you from filing - you earned those benefits through your work regardless of your employer's tax compliance issues.

I'm dealing with a similar situation right now with a landscaping company I worked for. When I called the DOL, they told me that even if your employer isn't in their system initially, they'll do what's called an "employer verification" process. They basically cross-reference your W-2s and pay stubs with state tax records to confirm you actually worked there. The agent I spoke with said this happens pretty frequently with smaller businesses who either didn't register properly or stopped paying their unemployment taxes. She reassured me that as long as I can prove I worked there (which sounds like you can with your construction job), I should still be eligible for benefits. The investigation part is really just the DOL doing their due diligence to make sure everything checks out before they start paying benefits. Hang in there - it's frustrating but you're not alone in this!

This exact thing happened to me when I worked for a small auto repair shop a few months ago. When I filed my claim, the system couldn't find my employer either. I was panicking thinking I wouldn't qualify for benefits, but it turned out the shop owner had just been really sloppy with his unemployment insurance payments. The DOL investigation took about 4-5 weeks, but I did eventually get my benefits - including back pay for the weeks I was waiting. The main thing is to keep filing your weekly certifications even while they're investigating, because you don't want to miss any weeks. Also, definitely keep calling and checking on the status - I found that staying on top of it helped move things along. Don't let your employer's mistakes cost you the benefits you're entitled to!