Who pays for unemployment when you get fired - confused about NYS Department of Labor funding
I got terminated from my job last week and I'm filing for unemployment benefits. My former boss made some comment about how my claim is going to cost the company money through higher taxes. Is this true? I thought unemployment was paid by the government. Can someone explain who actually pays for unemployment when you get fired? I don't want to feel guilty about filing if it's hurting my old employer financially.
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Juan Moreno
Your employer pays unemployment insurance taxes to NYS Department of Labor throughout the year, which funds the unemployment system. When you file a claim, it doesn't directly come out of their pocket right away, but their tax rate can increase if they have too many claims. Don't feel guilty - you earned this benefit by working and your employer was required to pay into the system.
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Savanna Franklin
•Thank you! So it's not like they write a check for my weekly benefits? That makes me feel better about filing.
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Amy Fleming
yeah the employer pays but its not like they pay YOUR specific claim amount... they pay taxes based on their payroll and claim history with NYS Department of Labor
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Alice Pierce
Here's how it works: Employers pay State Unemployment Tax (SUTA) to NYS Department of Labor based on their total payroll. The tax rate varies depending on how many former employees have filed claims. New businesses start at a standard rate, then it goes up or down based on their 'experience rating.' So yes, having employees file unemployment claims can eventually increase an employer's tax rate, but the benefits you receive come from the state fund, not directly from your employer's bank account.
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Esteban Tate
•Wait so if I file a claim against my employer it WILL make their taxes go up? Now I feel terrible...
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Alice Pierce
•Not necessarily right away, and definitely don't feel bad! The system is designed this way to encourage employers to avoid unnecessary layoffs, but also to provide benefits to workers who lose jobs through no fault of their own. If you were fired for misconduct that might be different, but regular terminations are exactly what unemployment insurance is for.
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Ivanna St. Pierre
I went through this same worry when I got laid off. Turns out my company had been paying unemployment taxes for years and never had anyone file claims before me. The HR person actually told me they were glad someone was finally using the benefit they'd been paying for! Don't let guilt stop you from filing - that's exactly what this system is designed for.
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Elin Robinson
THE WHOLE SYSTEM IS RIGGED ANYWAY! Employers find every excuse to deny claims and fight them with NYS Department of Labor to keep their tax rates low. Meanwhile workers who paid into the system through their labor can't even get through on the phone to file claims. Don't worry about your employer - they'll find ways to screw over the next person too.
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Atticus Domingo
•That's a bit harsh but I get the frustration. It took me weeks to get through to NYS Department of Labor when my claim got stuck in adjudication.
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Juan Moreno
If you're having trouble reaching NYS Department of Labor to file your claim or get answers about the process, I had success using a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that explains how it works. Really helped when I couldn't get anyone on the phone during peak times.
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Savanna Franklin
•Thanks for the suggestion! I haven't had trouble filing yet but good to know there are options if I run into issues with NYS Department of Labor.
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Amy Fleming
bottom line - file your claim and don't worry about it. thats what unemployment insurance is for and your employer knew the deal when they hired people
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