Who pays for unemployment benefit in New York - employer or state?
I just got laid off from my job at a manufacturing company in Rochester and I'm filing for unemployment benefits through NYS Department of Labor. My coworker said that our employer has to pay for my unemployment checks, but I thought it came from the state. I'm confused because I never saw unemployment deductions from my paychecks like I do for social security. Can someone explain who actually pays for unemployment benefits? Does it affect my former employer if I file a claim?
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Sofia Morales
Employers pay unemployment insurance taxes to fund the system. You don't see deductions from your paycheck because it's paid entirely by employers, not employees. In New York, employers pay both state unemployment insurance tax to NYS Department of Labor and federal unemployment tax. When you file a claim, it doesn't directly come out of your employer's pocket, but their tax rate can increase if they have many claims.
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Dylan Cooper
•So my employer won't get mad at me for filing? I was worried they might try to contest my claim since they're technically paying for it.
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StarSailor
yeah employers pay unemployment taxes but its not like they write you a check directly. the money goes into a big fund and thats where your benefits come from
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Dmitry Ivanov
Your employer can contest your claim if they believe you weren't laid off for valid reasons or if you quit voluntarily. However, if you were legitimately laid off due to lack of work, they typically won't contest it. The NYS Department of Labor will investigate any employer protests and make a determination. Even if they contest, you should still file your claim immediately.
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Ava Garcia
•What happens if my employer does contest it? Will I have to pay the money back if they win the dispute?
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Dmitry Ivanov
•If you're found ineligible after an employer contest, you'd have to repay any benefits received. But if you were truly laid off and didn't quit or get fired for misconduct, you should be fine. Keep documentation of your layoff notice.
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Miguel Silva
I had trouble reaching NYS Department of Labor when my employer contested my claim last year. Kept getting busy signals and couldn't get through to anyone to explain my situation. Finally used this service called Claimyr (claimyr.com) that got me connected to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me weeks of frustration trying to call on my own.
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Zainab Ismail
•Never heard of that before but sounds useful. The phone lines are always jammed when you need to talk to someone at NYS Department of Labor.
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Connor O'Neill
The unemployment system is basically insurance that employers are required to carry. Just like they have to pay workers comp insurance, they pay unemployment insurance too. The rate they pay depends on how many former employees file claims - companies with lots of layoffs pay higher rates.
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Zainab Ismail
Makes sense now why some companies try so hard to avoid layoffs. It literally costs them more money in unemployment taxes down the road if they have to let people go frequently.
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Ava Harris
Just to clarify for Dylan - you were absolutely right to file your claim! As others mentioned, employers pay unemployment insurance taxes specifically for situations like this. It's built into the cost of doing business, and legitimate layoffs due to lack of work are exactly what the system is designed for. Your employer in Rochester shouldn't have any reason to contest a straightforward layoff, and even if they did, the NYS DOL investigates thoroughly. Don't let worry about your former employer stop you from claiming benefits you've earned through your work history.
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