When you file unemployment who pays - confused about NYS Department of Labor funding
I'm really confused about something basic with unemployment benefits. When you file unemployment who pays for the benefits you receive? Is it the state, your former employer, or someone else? I just got laid off from my retail job and I'm about to file my claim but I want to understand where the money actually comes from. My manager mentioned something about their unemployment insurance rates but I don't really get how it all works. Does this affect whether I'll get approved or how much I'll receive?
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Tyler Murphy
Your unemployment benefits are paid by the NYS Department of Labor using funds collected from employer unemployment insurance taxes. Every employer pays quarterly taxes based on their payroll and claim history. The money goes into a state fund that pays out benefits to eligible claimants. Your former employer doesn't directly pay your weekly benefits, but their tax rate can increase if they have more claims filed against them.
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Alana Willis
•So my employer can't block my claim just because they don't want to pay more taxes? That's a relief because my manager seemed pretty upset about me filing.
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Sara Unger
Think of it like insurance - employers pay premiums (unemployment taxes) and the state manages the fund. When you file a claim, NYS Department of Labor determines if you're eligible based on why you lost your job and your work history. The employer can contest your claim if they think you were fired for misconduct, but they can't just refuse to pay because they don't want their rates to go up.
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Butch Sledgehammer
•My boss tried to tell me I couldn't file because 'it would hurt the company.' That's total BS - you have every right to file if you're eligible.
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Freya Ross
Yeah I was confused about this too when I got laid off last year. I thought my employer had to write me checks every week lol. But no, it all comes from the state unemployment fund. Your employer might see their tax rate increase next year if they have a lot of claims, which is why some try to contest legitimate claims.
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Alana Willis
•Did your employer try to contest your claim? I'm worried mine might because they seemed really annoyed about the layoff affecting their 'numbers'.
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Freya Ross
•They did contest it actually, said I was fired for performance issues when I was clearly laid off due to store closure. I had to appeal but won because I had documentation.
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Leslie Parker
I had trouble reaching NYS Department of Labor when my employer contested my claim and I needed to speak with someone about the hearing process. Regular phone lines were always busy. I ended up using Claimyr.com to get through to an actual agent - they have this system that calls you back when they reach someone. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me understand my appeal rights and get my benefits reinstated.
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Sergio Neal
•Never heard of that service but I might need it. I've been trying to call NYS Department of Labor for days about my adjudication status and can't get through.
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Savanna Franklin
employers hate paying unemployment taxes thats why they fight claims even when theyre legit. my old job tried to say everyone who got laid off was actually fired for attendance. bunch of jerks
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Tyler Murphy
•That's exactly why the appeal process exists. If you were truly laid off and have documentation, you can fight their contest and usually win.
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Butch Sledgehammer
The whole system is designed to protect workers who lose their jobs through no fault of their own. Don't let your employer intimidate you - if you were laid off, you earned those benefits through your work history and their tax contributions.
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Alana Willis
•Thanks everyone, this really helps me understand. I'm going to file my claim tomorrow and not worry about what my former manager thinks about it.
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