When an employee filed unemployment who pays - NYS Department of Labor benefits question
So my former coworker just filed for unemployment after getting laid off last month and I'm wondering who actually pays for their benefits? Is it coming out of my current employer's pocket or does NYS Department of Labor have some kind of fund? I'm asking because our boss mentioned something about our company's unemployment insurance rates going up and I'm confused about how this all works. Does every claim filed against a company affect their rates?
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Amara Okafor
Employers pay into the NYS Department of Labor unemployment insurance fund through quarterly taxes. When someone files a claim, the benefits come from this state fund, not directly from your employer's bank account. However, claims do affect your employer's future tax rates - it's called an 'experience rating' system where companies with more claims pay higher rates.
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Liam Sullivan
•That makes sense! So it's like insurance where everyone pays in but claims affect your premiums later?
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CosmicCommander
yeah my old job used to fight every unemployment claim because they said it would make their insurance costs go up. super annoying when people deserved the benefits
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Giovanni Colombo
•That's unfortunately common. Employers can contest claims through NYS Department of Labor but they need valid reasons like misconduct or voluntary quit. Just trying to avoid rate increases isn't grounds for denial.
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Fatima Al-Qasimi
Wait I'm confused - if I file for unemployment does my old employer have to write me checks every week? I thought it came from the government??
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Amara Okafor
•No, your benefits come directly from NYS Department of Labor, not your former employer. The employer just pays taxes into the system. You'll get payments through direct deposit or the NYS unemployment debit card.
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Fatima Al-Qasimi
•Oh thank god, I was worried about having to deal with my toxic ex-boss for money lol
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Dylan Cooper
The system is set up so employers with stable workforces pay lower rates while companies that frequently lay off workers pay more. It's supposed to incentivize job stability. Your employer probably saw their quarterly statement showing increased liability from recent claims.
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Sofia Ramirez
•Makes sense from a policy standpoint but I've seen companies try really hard to contest legitimate claims just to protect their rates
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Dmitry Volkov
Just went through this nightmare trying to reach NYS Department of Labor about a contested claim issue. Couldn't get through on the phone for weeks until someone told me about claimyr.com - they actually got me connected to an agent who explained how the employer tax system works. There's a good video demo at https://youtu.be/qyftW-mnTNI that shows how it works for getting through to speak with someone.
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Liam Sullivan
•Interesting, never heard of that service before. Was it expensive?
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Dmitry Volkov
•Honestly just glad I could finally talk to someone who could explain my situation properly instead of being stuck in phone limbo
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CosmicCommander
bottom line is your coworker gets their money from the state fund and your boss pays more taxes later if they have lots of claims. pretty straightforward once you understand it
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