When you apply for unemployment who pays - confused about NYS Department of Labor funding
I'm filling out my unemployment application and got confused about something. When you apply for unemployment who pays the benefits? Is it my former employer or does NYS Department of Labor have their own fund? My coworker said employers pay into it but I'm not sure if that's right. Also wondering if this affects how much I can get or if my old boss has any say in my claim approval?
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Aiden Chen
Unemployment benefits are paid from the New York State Unemployment Insurance Trust Fund. Your former employer doesn't directly pay your weekly benefits - they pay quarterly UI taxes to NYS Department of Labor based on their payroll and claim history. The trust fund collects these taxes from all covered employers and uses that money to pay out benefits to eligible claimants.
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Sophia Bennett
•Oh that makes sense! So my boss can't just refuse to pay me or anything like that?
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Zoey Bianchi
Right, your employer has zero control over whether you get paid once NYS Department of Labor approves your claim. They already paid their UI taxes regardless. However, they can contest your claim if they think you don't qualify (like if they say you were fired for misconduct), which could trigger an adjudication process.
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Christopher Morgan
•This is exactly what happened to me! Got stuck in adjudication for weeks because my employer contested saying I quit when I was actually laid off.
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Sophia Bennett
•How did you resolve the adjudication issue? I'm worried my employer might contest mine too.
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Aurora St.Pierre
I had trouble reaching anyone at NYS Department of Labor when my employer contested my claim. Kept getting busy signals for weeks. Finally used this service called Claimyr (claimyr.com) that gets you through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Got my adjudication resolved in one phone call after using it.
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Grace Johnson
•Never heard of that service before. Did it actually work or is it just another scam?
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Aurora St.Pierre
•It worked for me - spoke to a real NYS Department of Labor rep within 10 minutes instead of calling for hours with no luck.
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Jayden Reed
also the amount you get depends on your wages in the base period not what your employer wants to pay so they cant reduce it either
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Nora Brooks
Yeah the whole system is designed so employers can't mess with your benefits once you qualify. They already paid into the system through their payroll taxes. NYS Department of Labor handles everything from there. Your benefit amount is calculated from your work history, not whatever your old boss thinks you deserve.
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Sophia Bennett
•Thanks everyone! This really cleared up my confusion about how the funding works.
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Maya Jackson
Just to add some specific details - NYS employers pay UI taxes on wages up to $12,300 per employee (as of 2024). The tax rate varies by employer based on their "experience rating" - companies with more former employees who claimed unemployment pay higher rates. So while your individual employer isn't writing you a check each week, they definitely contributed to the fund that's paying your benefits. The system is designed to be fair and remove any personal dynamics between you and your former boss from the equation.
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