Who pays for my unemployment benefits - confused about NYS Department of Labor funding
This might sound like a dumb question but I'm genuinely confused about who actually pays for unemployment benefits. I've been working for 8 years and just filed my first claim with NYS Department of Labor after getting laid off from my retail job. My coworker said employers pay into it, but then someone else told me it comes from taxes. I'm trying to understand if this affects how much I can get or how long I can collect. Does it matter what size company I worked for? I see all these forms mentioning different codes and I don't want to mess anything up on my weekly claims.
10 comments
Join the conversation
NeonNova
Your unemployment benefits are funded through payroll taxes that your employers paid on your behalf throughout your work history. In New York, employers pay both state unemployment insurance tax (SUI) and federal unemployment tax (FUTA) based on their payroll. You as the employee don't pay into the unemployment system directly - it's entirely employer-funded. The amount you receive is calculated based on your earnings history over your base period, and the company size doesn't affect your benefit amount, though it can affect their tax rates.
0 coins
Fatima Al-Hashimi
•That makes so much more sense! So when I worked part-time at different places over the years, all those employers were contributing? I was worried there might not be enough 'in my account' or something.
0 coins
Dylan Campbell
yeah its basically insurance that companies pay for their workers, like how they pay workers comp insurance too. the bigger companies usually pay lower rates because they have better claim histories
0 coins
Sofia Hernandez
•Actually it's a bit more complex than that. NYS Department of Labor uses an experience rating system where employers with more former employees filing claims pay higher rates. It's designed to incentivize companies to maintain stable employment. But you're right that it's employer-funded insurance.
0 coins
Dmitry Kuznetsov
I had the same confusion when I first filed! What helped me was understanding that it's like any other insurance - employers pay premiums based on risk. NYS Department of Labor collects these taxes quarterly from employers and pools them into the unemployment insurance fund. When you file weekly claims, you're drawing from this shared pool, not from some individual account tied to your specific employer.
0 coins
Fatima Al-Hashimi
•Oh that's a relief. I was thinking my last employer might get mad about me filing since they laid me off due to budget cuts.
0 coins
Ava Thompson
Just to add - if you're having trouble getting through to NYS Department of Labor to ask questions about your claim, I recently discovered this service called Claimyr (claimyr.com) that helps you get connected to actual agents. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I was stuck in adjudication for weeks and couldn't get anyone on the phone until I tried them. Might be worth checking out if you need to speak with someone about your benefits calculation.
0 coins
Miguel Ramos
•Did you actually get through to someone? I've been calling the NYS Department of Labor number for two weeks and keep getting that busy signal or getting disconnected.
0 coins
Ava Thompson
•Yes! It took about 45 minutes but I actually spoke to a real person who explained my whole claim status. Much better than calling the regular number and waiting on hold forever.
0 coins
Zainab Ibrahim
Don't stress about the weekly claims process either. As long as you're honest about any work you do and keep looking for jobs (you need to make at least 3 job search contacts per week in NY), you'll be fine. The funding source doesn't affect what you need to do as a claimant.
0 coins