Who pays unemployment benefits in NY - confused about NYS Department of Labor funding
I'm totally confused about how unemployment actually gets funded. Like when I get my weekly benefit payment, where does that money actually come from? Is it the NYS Department of Labor paying me directly, or is it my old employer? I heard someone say employers pay into some kind of fund but I'm not sure how that works. Also wondering if there's a limit to how much total money is available for unemployment claims in NY? My friend said the state could run out of money but that doesn't sound right to me.
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Dmitri Volkov
Employers pay unemployment insurance taxes to fund the system. The NYS Department of Labor collects these taxes and administers the benefit payments. Your individual employer doesn't pay your specific claim - it comes from the pooled fund that all employers contribute to based on their payroll and claim history.
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LilMama23
•So my old job is still paying for my unemployment even though I got laid off? That seems weird.
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Gabrielle Dubois
its funded by employer taxes but also federal money sometimes when theres high unemployment
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Tyrone Johnson
•The federal government can provide extended benefits during recessions, but regular UI is funded entirely by state employer taxes in NY. The NYS Department of Labor manages the State Unemployment Insurance fund which has specific reserve requirements.
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Ingrid Larsson
I've been trying to get through to someone at NYS Department of Labor for weeks to ask about my claim status and can never reach anyone! The phone system is impossible. Does anyone know a way to actually talk to a real person there?
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Carlos Mendoza
•I had the same problem until I found this service called Claimyr at claimyr.com - they actually got me connected to a NYS Department of Labor agent within a few hours. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me so much frustration after weeks of busy signals.
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Ingrid Larsson
•Really? That actually works? I'm so tired of the automated system hanging up on me.
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Zainab Mahmoud
The whole system is basically employers paying insurance premiums through payroll taxes to the state. Higher turnover companies pay higher rates. NYS Department of Labor sets the tax rates based on each employer's claim history - its called experience rating.
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LilMama23
•That makes more sense. So companies that lay people off a lot have to pay more into the system?
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Ava Williams
yeah my company HR told us they pay like thousands in UI taxes every quarter, its one of their biggest expenses after salaries
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