When does an employer not have to pay unemployment benefits in NY?
I'm trying to understand the rules about when employers don't have to contribute to unemployment insurance for their workers. My friend got fired from a small company and they're saying she can't get benefits because the employer doesn't participate in the system. Is this actually possible? I thought all employers had to pay into NYS Department of Labor unemployment insurance. What are the exceptions and how does this affect getting benefits?
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Luca Ricci
There are specific situations where employers aren't required to pay unemployment insurance taxes to NYS Department of Labor. Small employers with less than $300 in quarterly wages or those who employ domestic workers for less than $500 in a calendar quarter may be exempt. Also, certain types of workers like independent contractors, some agricultural workers, and employees of religious organizations might not be covered under the UI system.
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Nia Williams
•So if the employer wasn't paying into the system, my friend definitely can't get benefits? That seems really unfair if she was working there for months.
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Aisha Mohammed
wait this happened to my cousin too!! she worked at this tiny cleaning company and when she got laid off they told her no unemployment because the boss never registered with NYS Department of Labor or something like that
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Ethan Campbell
•Your cousin should still file a claim. Sometimes workers think they're not covered but actually are. NYS Department of Labor will investigate the employer's status and determine coverage. Even if the employer should have been paying but wasn't, the worker might still be eligible and the employer could face penalties.
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Yuki Watanabe
The whole system is rigged against workers! I've seen so many small businesses try to avoid paying unemployment taxes by classifying everyone as contractors or keeping payroll artificially low. Meanwhile workers get screwed when they lose their jobs and find out they're not covered.
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Carmen Sanchez
•This is exactly why I had to use Claimyr (claimyr.com) to actually reach someone at NYS Department of Labor about my employer coverage issue. Took weeks of trying to get through normally. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Finally got clarification that my employer WAS supposed to be paying in.
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Andre Dupont
From what I understand, most regular employees should be covered unless they fall into very specific exempt categories. The employer's obligation to pay unemployment taxes and the worker's eligibility for benefits are closely linked but not always identical. Even if an employer improperly failed to pay taxes, NYS Department of Labor can still approve benefits and go after the employer separately for unpaid contributions and penalties.
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Zoe Papadakis
omg yes file anyway!! my sister thought she couldnt get anything cause her boss said they were too small but turns out he was lying and just trying to avoid paying taxes
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Lucas Turner
Just to add some clarity here - the threshold for employer coverage in NY is actually quite low. Employers must pay unemployment insurance if they pay $300 or more in wages in any calendar quarter, OR if they employ one or more workers for some portion of a day in each of 20 different calendar weeks. So most legitimate employers should be covered. If your friend's employer is claiming they don't participate, it's worth having her file a claim anyway because NYS Department of Labor will investigate and determine if the employer was actually required to be paying in. Don't take the employer's word for it!
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