What percentage of unemployment does employer pay in NYS?
I'm trying to understand how unemployment insurance works in New York. Does my employer pay a certain percentage towards my unemployment benefits if I get laid off? I heard different things from coworkers and want to know the actual numbers. Is it based on my salary or a flat rate? Also wondering if this affects how much I can collect from NYS Department of Labor if something happens to my job.
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Malik Robinson
Employers in NY pay unemployment insurance taxes to fund the system, but it's not a direct percentage of your individual salary. The rate varies based on the employer's experience rating and industry. For 2025, the range is typically 2.1% to 9.9% of wages up to the taxable wage base of $12,300 per employee. Your benefit amount is calculated separately based on your earnings history over the base period.
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Emma Taylor
•Thanks! So the employer rate doesn't directly determine what I get paid if I file for unemployment?
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Malik Robinson
•Exactly right. Your weekly benefit amount is calculated from your highest quarter earnings in the base period, up to the maximum of $504 per week in 2025. The employer's tax rate is separate from your benefit calculation.
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Isabella Silva
my old boss told me he paid like 3% but i never really understood if that meant anything for me when i got laid off last year
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Ravi Choudhury
•The employer rate doesn't affect your benefits directly, but higher-rate employers (those with more layoffs) do contribute more to the overall fund. Your benefits depend on your work history and wages.
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CosmosCaptain
I'm confused about this too! When I worked at a restaurant, the manager said they paid unemployment taxes but I never saw it on my paystubs. Is this something employees see or just employers?
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Malik Robinson
•Unemployment insurance taxes are paid entirely by employers in New York - it doesn't come out of your paycheck. You won't see any deduction for UI on your paystub. That's different from things like Social Security or disability insurance where you do pay a portion.
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CosmosCaptain
•Oh that makes sense! So when I filed my claim with NYS Department of Labor, that money came from what all the employers had been paying in?
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Freya Johansen
Just went through this whole process when my company had layoffs. If you're trying to understand your potential benefits, focus on your quarterly wages rather than what your employer pays in taxes. I used the NYS Department of Labor benefit calculator online and it was pretty accurate. The employer contribution rate is more about their business costs.
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Emma Taylor
•Good point about the calculator! I should probably look at that instead of worrying about the employer side.
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Omar Fawzi
Been dealing with NYS Department of Labor for months trying to get through to someone about my claim status. If you need to actually talk to an agent about benefit calculations or employer contributions, I found this service called claimyr.com that helps you get through their phone system. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of being on hold.
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Isabella Silva
•how much does that cost? seems like something we shouldnt have to pay for
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Omar Fawzi
•They focus on getting you connected rather than charging by the minute. Worth it when you actually need to speak to someone at NYS Department of Labor and can't get through the regular way.
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Yara Haddad
For anyone still confused about this - think of it like car insurance. Your employer pays premiums into the unemployment insurance fund based on their risk level (how many people they've laid off), but when you need to make a claim, your payout is based on your own driving record (work history and wages), not what premium your employer paid. The NYS Department of Labor keeps these two things separate - employer contributions fund the system, but your individual benefits are calculated from your personal earnings record.
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Ava Garcia
•That's a really helpful analogy! I was getting confused trying to connect the employer tax rate to my potential benefits, but the car insurance comparison makes it click. So basically the employer rate is about funding the pool, and my benefits come from my own work record. Thanks for breaking it down that way!
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Zara Ahmed
This is super helpful information everyone! I'm in a similar situation where I'm worried about potential layoffs at my company. One thing I'm curious about - does the size of the employer or the industry they're in affect how much they pay into the unemployment system? Like would a big tech company pay the same rate as a small restaurant? And does that impact how quickly claims get processed or anything like that?
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Isla Fischer
•Great question! Yes, employer size and industry definitely affect the rates they pay. Larger companies often have more stable rates because they have more predictable layoff patterns, while smaller businesses might see more variation. Industries with seasonal work (like construction or hospitality) typically pay higher rates than stable industries like healthcare or government. However, the processing speed of your claim shouldn't be affected by what your employer pays - that's more about NYS Department of Labor staffing and system capacity. Your claim gets processed based on when you file and completeness of your application, not your former employer's contribution rate.
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