How Much Does The Employer Pay To The State When He Lays Off An Employee That Collects Unemployment Insurance?

[StevenBauer]

I am having a devil of a time finding an answer to this.We are in New York(Long Island, if it makes a difference). My husbands company has been going under for quite some time. He was the only official employee, as the rest were either contract employees(construction) or did not have a set work schedule, but were called upon when needed.His boss will not let him go because he claims he will have to pay major $$$ to the state to cover the UE Insurance. . I thought it was only 3-6%.What he has done to avoid having my husband file is to just tell him there is no current work, but there will be, or to be constantly late with paychecks. Sometimes he works every other week, and right now he has a ten day unwanted vacation without pay.(which might be more if his boss cannot find some work)His boss is filing Chapter 7 and will continue to do business, but will only be using contract workers. I need to find out what his boss will actually be paying to the state.

[Jamilah]

maggo said: 1 A call to your state employment office should clear this up. But if the company is in bankruptcy I would expect the boss will be paying nothing. Time to freshen up that resume. 48 months ago

[Remington]

It depends on "experience rating" and how much the insurance fund is paying out Typically a company is required to pay a percentage of payroll for Unemployment Insurance.  The percentage depends on the "experience rating" of the employer, that is, how often they?ve had people collect Unemployment Insurance Compensation("UIC").  It can also be dependent upon the industry; restaurants typically churn people heavily and thus have more claims.  In the case of a new company, they?re often hit with the highest percentage because they have no history and new companies are likely to die, laying off employees who will then collect UIC.   After some time, the company gets an experience rating, and then its percentage is set, which can be anything from zero to the maximum, typically 6%.  That?s correct, in some industries with low UIC claims and where the company doesn?t get many claims, the rate can be as low as zero because claims almost never happen.   For some states an employer gets the option to not pay a percentage but instead to do reimbursement, in which case if someone collects UIC from working for them, then they have to reimburse the state fund for the amount collected.   I just looked up New York, if I understand it, the employer?s rate ranges from 5.3% plus a surchage ranging from 0.4% to 8.9% of all payroll depending on how many people file UIC and whether they have a negative balance based on UIC claims.  So the amount paid could be anything from, say, about 6% of payroll to 14%.   Sources: http://www.labor.state.ny.us/ui/dande/article18.shtm PaulR 48 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Oskar]

I would call your State Unemployment commission office at once Tell them just exactly what you have stated here.  I do not know about New York, but in Texas that is Illegal. You may well be in a position to draw Unemployment insurance after all.  Do not tell or let your husband tell the boss until you have your answer from the unemployment commission.. I personally do not think the boss has ever paid the unemployment tax and could be in for a rude shock.  Get the name of the person you speak with their mailing address and the date and time you spoke with them.  It would be a good idea to follow up by sending them a copy of the statement above.   Take care of yourself, and best of luck for a quick response.   Betty Sources: business owner   usmc's Recommendations The 1978 New York City newspaper strike and its effect on employment and unemployment insurance(Labor research report) New York City private industry(covered by unemployment insurance): Establishments, employment, payrolls, 1958 and 1963 ; manufacturing, trade, services, ... mining, agriculture, forestry and fisheries In the matter of the investigation of the administration of unemployment relief in the city of New York, etc., pursuant to a resolution adopted by the ... to Bernard S. Deutsch, chairman [and others] These may help, or a Legal aid association could. usmc 48 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Gang]

OK, the boss is supposed to pay into the unemployment coffers each quarter based upon each and every employee working unless they are 1099 contractors.  That's each and every employee, full timeor part time.  If he hasn't been doing this, then he likely owes the state of NY quite a bit of money - money that probably can't be relieved through a bankruptcy.  There may be a loophole for companies with less than a certain number of employees, but that would need to be researched.   Your husband should most assuredly be filing and collecting unemployment everytime he is given an unpaid vacation or told not to come in because there is no work, or if it isn't full time and more than the unemployment amount.   The unemployment insuranc payment is about 3.4% in most states; it may be higher in NY.  But if the boss hasn't been paying it at all... Schelli 48 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Aldtun]

Here's my understanding: Generally, nothing, immediately, for any one particular incident.   If, however, there are many such incidents, and more in proportion to the company's workforce than is the general experience in that particular state, then, in future years, that employer might have to pay a higher percentage of the covered wages that it pays out than it did this year.   Given the particular details that you cite, i speculate that it will cost the employer nothing, because he plans to be paying out no covered wages in the future.   My understanding of all this could be incorrect; the authoritative source would be in the NY employment security agency(official name is "NY Dept. of Labor").  Here is a link: http://www.labor.state.ny.us/   Look for a link called something like "Unemployment Insurance Regulations" or an information contact.   http://www.labor.state.ny.us/ui/ui_index.shtm   My personal opinion is that the employer is trying to pull a fast one, and you should follow up on this vigorously.  The delaying of paychecks, for example is probably an "unfair labor practice" and hence against the law.   Good luck! LexWordsmith 48 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Caiseal]

  If, however, there are many such incidents, and more in proportion to the company's workforce than is the general experience in that particular state, then, in future years, that employer might have to pay a higher percentage of the covered wages that it pays out than it did this year.   Given the particular details that you cite, i speculate that it will cost the employer nothing, because he plans to be paying out no covered wages in the future.   My understanding of all this could be incorrect; the authoritative source would be in the NY employment security agency(official name is "NY Dept. of Labor").  Here is a link: http://www.labor.state.ny.us/   Look for a link called something like "Unemployment Insurance Regulations" or an information contact.   http://www.labor.state.ny.us/ui/ui_index.shtm   My personal opinion is that the employer is trying to pull a fast one, and you should follow up on this vigorously.  The delaying of paychecks, for example is probably an "unfair labor practice" and hence against the law.   Good luck!

[Gilroy]

Typically a company is required to pay a percentage of payroll for Unemployment Insurance.  The percentage depends on the "experience rating" of the employer, that is, how often they?ve had people collect Unemployment Insurance Compensation("UIC").  It can also be dependent upon the industry; restaurants typically churn people heavily and thus have more claims.  In the case of a new company, they?re often hit with the highest percentage because they have no history and new companies are likely to die, laying off employees who will then collect UIC.   After some time, the company gets an experience rating, and then its percentage is set, which can be anything from zero to the maximum, typically 6%.  That?s correct, in some industries with low UIC claims and where the company doesn?t get many claims, the rate can be as low as zero because claims almost never happen.   For some states an employer gets the option to not pay a percentage but instead to do reimbursement, in which case if someone collects UIC from working for them, then they have to reimburse the state fund for the amount collected.   I just looked up New York, if I understand it, the employer?s rate ranges from 5.3% plus a surchage ranging from 0.4% to 8.9% of all payroll depending on how many people file UIC and whether they have a negative balance based on UIC claims.  So the amount paid could be anything from, say, about 6% of payroll to 14%.  

[Giollaruaidh]

A call to your state employment office should clear this up. But if the company is in bankruptcy I would expect the boss will be paying nothing. Time to freshen up that resume.

[Rovere]

employee working unless they are 1099 contractors.  That's each and every employee, full timeor part time.  If he hasn't been doing this, then he likely owes the state of NY quite a bit of money - money that probably can't be relieved through a bankruptcy.  There may be a loophole for companies with less than a certain number of employees, but that would need to be researched.   Your husband should most assuredly be filing and collecting unemployment everytime he is given an unpaid vacation or told not to come in because there is no work, or if it isn't full time and more than the unemployment amount.   The unemployment insuranc payment is about 3.4% in most states; it may be higher in NY.  But if the boss hasn't been paying it at all...