Who pay for unemployment benefits in NY - confused about funding source
I've been receiving unemployment for about 6 weeks now and my coworker keeps telling me that my former employer is directly paying for my benefits. Is this true? I thought it came from some kind of government fund or insurance program. I'm worried because I left on bad terms with my manager and now I'm paranoid they might try to cut off my payments somehow. Can someone explain who actually pays for unemployment benefits in New York?
10 comments
Join the conversation
Zara Ahmed
Your former employer doesn't pay your benefits directly. Unemployment insurance is funded through payroll taxes that ALL employers pay into the NYS Department of Labor trust fund. Your specific employer can't cut off your payments - only the NYS Department of Labor can make decisions about your claim eligibility based on their rules and regulations.
0 coins
Sean O'Connor
•Oh thank goodness! I was so worried they could somehow sabotage my claim. So it's like a big pool of money that everyone contributes to?
0 coins
Luca Conti
Yeah it's basically employer-funded unemployment insurance. Companies pay quarterly taxes to NY state based on their payroll and their history with unemployment claims. The more former employees who file claims, the higher their tax rate goes up. That's why some employers fight claims - it affects their future costs.
0 coins
Nia Johnson
•this makes so much sense now why my old boss was being weird when I filed my claim
0 coins
CyberNinja
If you're having trouble reaching someone at NYS Department of Labor to verify your claim status or get answers about funding questions, I used a service called Claimyr that helped me get through to an actual agent. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped when I couldn't get through on my own.
0 coins
Mateo Lopez
•How much does something like that cost? I'm already stressed about money and don't want to pay extra fees just to talk to someone who should be answering the phone anyway
0 coins
CyberNinja
•I totally get the money concern but honestly it was worth it for me to get actual answers instead of being stuck in phone hell for weeks. The peace of mind was valuable.
0 coins
Aisha Abdullah
The whole system is set up so employers basically subsidize their former employees through these unemployment taxes. It's actually pretty fair when you think about it - companies that lay people off more often end up paying higher rates into the system.
0 coins
Ethan Davis
wait so does this mean if I quit my job I can't get unemployment?? because my employer didn't lay me off they would fight it right??
0 coins
Zara Ahmed
•Generally you need to be laid off or fired for reasons not related to misconduct to qualify. If you quit, you usually need to prove it was for good cause like unsafe working conditions or harassment. Your employer can contest your claim regardless of the circumstances.
0 coins