What happens if my employer didn't pay into unemployment insurance in NY?
I just got laid off from my job at a small construction company and when I tried filing for unemployment benefits, I'm getting weird messages about my employer not being found in the system. I'm starting to worry that maybe my boss never paid into unemployment insurance? What does this mean for my claim? Can I still get benefits if my employer didn't pay their unemployment taxes? This is really stressing me out because I need these benefits to pay rent.
10 comments
Join the conversation
Ravi Malhotra
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.
0 coins
Isabella Costa
AuthorThanks! So I should go ahead and complete my application even though I'm getting these weird error messages?
0 coins
Freya Christensen
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.
0 coins
Isabella Costa
AuthorSix weeks longer? Ugh, I was hoping to get my first payment within a few weeks. Did you have any trouble during the process?
0 coins
Omar Farouk
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
0 coins
Chloe Davis
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.
0 coins
AstroAlpha
Never heard of that service before. Is it legit? I've been trying to call NYS Department of Labor for days and just get busy signals.
0 coins
Diego Chavez
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.
0 coins
Anastasia Smirnova
I hear you but at least the system does eventually hold employers accountable. Better than some states where you'd just be out of luck.
0 coins
Zachary Hughes
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.
0 coins