Who is exempt from federal unemployment tax - confused about NYS Department of Labor implications
I'm trying to understand who exactly is exempt from federal unemployment tax and how this affects my NYS Department of Labor claim eligibility. I worked for a small nonprofit last year and my employer said they might be exempt from paying unemployment taxes. Does this mean I can't file for benefits? I'm really confused about how federal tax exemptions work with state unemployment claims. Has anyone dealt with this situation before?
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Giovanni Rossi
Federal unemployment tax exemptions don't necessarily disqualify you from NYS Department of Labor benefits. Most nonprofits with fewer than 4 employees and certain religious organizations can be exempt from FUTA, but they may still contribute to state unemployment insurance. You should check your pay stubs to see if state unemployment taxes were deducted.
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Fatima Al-Rashid
•I checked my last few pay stubs and there's definitely a line for NYS SUI deduction. So even if they're FUTA exempt, I should still be eligible for unemployment benefits?
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Aaliyah Jackson
wait so nonprofits dont have to pay unemployment taxes?? that seems really unfair to workers
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Giovanni Rossi
•It's more complicated than that. Larger nonprofits (4+ employees) usually do pay into unemployment insurance. Small nonprofits and certain religious organizations may be exempt from federal taxes but often still participate in state programs.
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KylieRose
I had this exact situation when I worked for a church-affiliated organization. They were exempt from federal unemployment tax but still paid into the NYS Department of Labor system. When I filed my claim, there were no issues at all. The exemption categories include religious organizations, certain agricultural employers, and some family employment situations.
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Miguel Hernández
•This is so confusing! I've been trying to call NYS Department of Labor for two weeks to get clarification on my employer's status but can never get through. The hold times are insane and I keep getting disconnected.
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KylieRose
•I had the same problem calling NYS Department of Labor directly. I ended up using Claimyr.com to get connected to an actual agent. They have this system that calls you back when an agent is available instead of waiting on hold forever. There's a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of frustration.
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Sasha Ivanov
Just because an employer is exempt from FUTA doesn't mean you can't collect unemployment. The key things that matter for NYS Department of Labor eligibility are whether you earned enough wages in covered employment and whether you lost your job through no fault of your own. Check your earnings statement on the my.ny.gov portal to see if your wages were reported.
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Fatima Al-Rashid
•Thanks! I logged into my.ny.gov and can see my wage history is there, so I guess my employer was contributing to the state system even if they're federally exempt.
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Liam Murphy
I think people get confused because there are different types of exemptions. Some employers are exempt from paying federal unemployment tax but still have to pay state unemployment insurance. Others might be exempt from both. The NYS Department of Labor website has a whole section explaining covered vs non-covered employment if you want to dig deeper into it.
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Chad Winthrope
•This is really helpful context! I've been dealing with a similar situation where I wasn't sure if my previous employer was properly covered. The distinction between federal and state exemptions definitely seems to trip people up. Do you happen to know if there's a way to verify your employer's coverage status directly through the NYS Department of Labor system, or do you just have to rely on checking if your wages show up in the earnings history?
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