Who actually pays when you file for NYS Department of Labor unemployment benefits?
I just started my first unemployment claim and I'm honestly confused about where the money comes from. Does it come directly from my former employer or does the state pay it? My friend said something about employer taxes but I don't really understand how it works. I keep seeing different amounts on my weekly claim and I'm wondering if my old company is getting charged every time I certify. Can someone explain this to me?
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Sofia Price
Your unemployment benefits are paid by the NYS Department of Labor from the unemployment insurance trust fund. This fund is funded by payroll taxes that employers pay - it's called SUTA (State Unemployment Tax Act). Your employer doesn't write a check directly for your benefits, but they do pay into the system based on their payroll and experience rating.
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Mateo Warren
•So my employer already paid for this before I even got laid off? That makes me feel better about filing honestly.
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Alice Coleman
Yeah your employer pays unemployment taxes every quarter to fund the system. The rate they pay depends on how many former employees have filed claims - that's called the experience rating. Companies with more layoffs pay higher rates.
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Owen Jenkins
•this is why some employers try to fight legit claims, they don't want their rates going up
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Lilah Brooks
I always thought it came out of my paycheck but apparently that's only in a few states. In NY it's 100% employer funded through their quarterly tax payments to NYS Department of Labor.
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Jackson Carter
If you're having trouble getting through to NYS Department of Labor to ask questions about your claim, I had good luck with claimyr.com - they help you actually reach an agent by phone. There's 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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Kolton Murphy
•How much does that cost though? I'm already tight on money waiting for my benefits to start.
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Jackson Carter
•It's definitely worth it if you need to resolve claim issues quickly. Much cheaper than missing rent because your benefits are delayed.
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Evelyn Rivera
The whole system is basically insurance that employers pay for. Your weekly benefit amount is based on your past wages but the actual money comes from that insurance pool, not your specific employer's bank account.
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