When is an employer required to pay unemployment benefits in NY - confused about the process
I'm really confused about how unemployment insurance works. I thought employees paid into it through payroll deductions, but my former boss keeps saying he has to 'pay my unemployment' now that I'm collecting benefits. Is this true? When exactly is an employer required to pay unemployment in New York? I was laid off from my restaurant job last month and started receiving UI benefits, but now my old manager is acting like it's coming directly out of his pocket. Can someone explain how this actually works?
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Yara Nassar
Your employer contributes to the unemployment insurance fund through payroll taxes, but they don't directly pay your individual benefits. In New York, employers pay into the NYS Department of Labor unemployment insurance fund based on their payroll and experience rating. The fund pays your benefits, not your specific employer. However, if you file a claim, it can affect their future tax rates.
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Connor Murphy
•Oh that makes more sense! So he's not writing me a check every week, but my claim might make his taxes go up later?
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StarGazer101
yeah my old boss tried to scare me about this too when i got laid off, said i was costing him money lol. turns out he was just being dramatic about the tax thing
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Keisha Jackson
Employers in NY are required to pay unemployment insurance taxes quarterly to the NYS Department of Labor. The rate depends on their experience rating - basically how many former employees have filed claims. So while they're not paying your benefits directly, multiple claims can increase their future tax burden. Some employers get upset about this and take it out on workers, which isn't fair since layoffs are usually business decisions.
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Paolo Romano
•This is exactly what happened to me! Boss kept calling it 'my unemployment bill' but really it was just affecting his business taxes. Super manipulative honestly.
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Amina Diop
Wait so does this mean they can fight my claim to avoid paying higher taxes? I'm worried my employer might try to contest it even though the layoff wasn't my fault.
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Yara Nassar
•Yes, employers can contest claims, but they need valid reasons like misconduct or voluntary quit. If you were legitimately laid off, they have no grounds to contest. If they do contest it anyway, you'll go through an adjudication process with the NYS Department of Labor.
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Oliver Schmidt
•I had this exact problem last year - couldn't get through to NYS Department of Labor for weeks to explain my side during adjudication. Finally used claimyr.com to get connected to an actual agent who cleared everything up in one call. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Way better than sitting on hold for hours.
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Natasha Volkov
The whole system is backwards if you ask me. Why should small businesses get penalized for economic downturns that force layoffs? No wonder employers try to contest legitimate claims.
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Keisha Jackson
•It's insurance though - businesses pay in when times are good to cover workers when times are bad. The experience rating system encourages employers to maintain stable employment when possible.
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Fatima Al-Hashimi
Just to clarify for anyone still confused - in NY, employers pay unemployment insurance taxes based on their "experience rating" which goes up if they have more claims filed against them. So while your boss isn't cutting you a personal check each week, your claim does contribute to potentially higher taxes for his business in the future. That's probably why he's being dramatic about it, but it's still not fair for him to make you feel guilty about collecting benefits you're entitled to after being laid off.
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