What percentage of unemployment does the employer pay - NYS Department of Labor contributions explained
I'm trying to understand how unemployment insurance works in New York. What percentage of my unemployment benefits does my former employer actually pay? I know they pay into the system but I'm confused about whether they pay a percentage of my specific claim or if it's just general contributions to the NYS Department of Labor fund. My coworker said employers pay 100% but that doesn't sound right to me. Can someone explain how the employer contribution system actually works?
8 comments


Sadie Benitez
Employers don't pay a percentage of your specific unemployment claim. Instead, they pay quarterly taxes to the NYS Department of Labor based on their payroll and experience rating. The rate varies but typically ranges from 0.6% to 9.9% of taxable wages per employee. Your benefits come from this pooled fund, not directly from your former employer's pocket.
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Abby Marshall
•That makes more sense! So if I file a claim it doesn't directly cost my employer extra money right away?
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Drew Hathaway
yeah the employer pays into the system but its not like they write a check for your specific claim amount lol
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Laila Prince
The employer contribution rate is determined by their 'experience rating' which looks at how many former employees have filed unemployment claims. Companies with more claims pay higher rates over time. So while they don't pay your specific claim directly, frequent claims from their workers will increase their future NYS Department of Labor tax rate.
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Isabel Vega
•This is why some employers fight unemployment claims so hard! They're worried about their future tax rates going up.
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Dominique Adams
I had such a hard time getting through to NYS Department of Labor to ask about this exact question last month. Kept getting busy signals and when I finally got through they transferred me three times. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual agent who explained the whole employer contribution system. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works - basically they handle the calling for you so you don't have to sit on hold forever.
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Abby Marshall
•Interesting, I might need to try that if I have more questions. The NYS Department of Labor phone system is impossible.
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Marilyn Dixon
Just to add - in New York, employees don't contribute anything to unemployment insurance. It's entirely funded by employer contributions to the NYS Department of Labor. Some states make employees pay a small percentage but not NY.
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