Who pays for unemployment benefits in NY - confused about NYS Department of Labor funding
I'm filing my first unemployment claim and I'm honestly confused about who actually pays for these benefits. My friend told me it comes from taxes that employers pay, but another person said it's from my paycheck deductions. I've been looking at my old pay stubs and I don't see any specific unemployment deduction listed. Does anyone know how this actually works with NYS Department of Labor? I want to understand if I'm somehow paying into this system or if it's completely employer-funded.
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Ev Luca
It's actually paid by your employer through unemployment insurance taxes they pay to the state. You don't have anything deducted from your paycheck for regular unemployment benefits. Employers pay into the NYS Department of Labor unemployment insurance fund based on their payroll and their experience rating (how many former employees have filed claims). It's similar to workers comp in that way - entirely employer funded.
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Lukas Fitzgerald
•Oh wow, so I'm not paying anything into this system directly? That makes me feel less guilty about filing then. Thanks for explaining!
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Avery Davis
yeah my boss was always complaining about his unemployment taxes going up when people got laid off, so definitely employer pays it all
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Collins Angel
•That's why some employers fight unemployment claims so hard - it directly affects their tax rates with NYS Department of Labor. Higher claims history means higher taxes for them.
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Marcelle Drum
Just to be completely clear about the funding structure: NYS Department of Labor unemployment benefits are funded through State Unemployment Tax Act (SUTA) contributions paid by employers. The tax rate varies by employer based on their claims history and industry. There's also a small Federal Unemployment Tax Act (FUTA) component, but that's mainly for administrative costs. Employees in NY don't pay unemployment insurance premiums through payroll deductions - this is different from disability insurance which you might see deducted as 'DI' on your paystub.
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Tate Jensen
•Wait, so the disability insurance I see taken out of my check is different from unemployment? I always thought they were the same thing!
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Marcelle Drum
•Correct - disability insurance (DI) is for when you can't work due to illness or injury, while unemployment insurance is for when you lose your job through no fault of your own. Two completely separate programs with different funding sources.
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Adaline Wong
I've been dealing with NYS Department of Labor for months trying to get through to someone about my claim status and it's been impossible. If you need to actually talk to an agent, I found this service called Claimyr that helped me get through. They have a website at claimyr.com and there's a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Way better than sitting on hold for hours just to get disconnected.
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Lukas Fitzgerald
•Really? How does that work exactly? I might need to call them about my job search requirements.
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Adaline Wong
•They basically handle the calling and waiting for you, then connect you when they get a real person on the line. Saved me so much frustration dealing with the NYS Department of Labor phone system.
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Gabriel Ruiz
The system is designed so that employers who lay off more workers pay higher rates - it's supposed to incentivize job stability. But honestly, the whole NYS Department of Labor system feels broken when you're actually trying to use it. At least knowing you're not personally funding it makes the bureaucracy slightly less frustrating.
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Zainab Ibrahim
Thanks everyone for clearing this up! I had no idea it was entirely employer-funded through their unemployment taxes. I was actually worried I hadn't been paying enough into the system somehow. It's good to know that when I file my claim with NYS Department of Labor, I'm accessing benefits that my previous employers have already paid for through their tax contributions. Makes the whole process feel more legitimate and less like I'm asking for a handout.
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Dylan Campbell
•Exactly! I had the same misconception when I first filed. It's actually a pretty smart system - employers pay into it based on their history of layoffs, so companies that are more stable with their workforce get lower rates. Don't feel guilty about using it at all - you've earned these benefits through your work history, even though you weren't directly paying in.
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Rajiv Kumar
This is really helpful information! I'm in a similar situation and was also confused about the funding. One thing I'm still wondering about - does the amount of benefits I can receive depend on how much my employer paid in taxes, or is it based on my earnings history? I want to make sure I understand how the benefit calculation works with the NYS Department of Labor system.
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