What Is NY SUI and How Does It Affect Employers?
Understand New York State Unemployment Insurance (NY SUI). Learn its purpose and crucial implications for employers operating in New York.
New York State Unemployment Insurance (SUI) provides temporary financial assistance to eligible workers who experience job loss. This program helps stabilize the economy by offering a financial bridge during unemployment. For New York employers, understanding SUI is a compliance obligation and a contribution to workforce stability.
Understanding New York State Unemployment Insurance (SUI)
New York State Unemployment Insurance (SUI) is a state-mandated program designed to offer temporary financial support to individuals who become unemployed through no fault of their own. The New York State Department of Labor (NYSDOL) administers this program. Its goal is to provide economic stability for workers and the state by partially replacing lost wages.
This system operates as an insurance program, funded exclusively by employer contributions, rather than through deductions from employee wages. Employers contribute to the state’s unemployment insurance fund through payroll taxes, ensuring funds are available to support the unemployed.
Employer Responsibilities for NY SUI
Employers in New York have specific obligations regarding SUI contributions. The taxable wage base for 2025 is $12,800 per employee, meaning employers contribute based on the first $12,800 of wages paid annually.
Individual employer contribution rates are influenced by an “experience rating,” which reflects the employer’s history of unemployment claims. Businesses with fewer unemployment claims generally receive lower rates, while those with more claims may face higher rates. For new employers, the 2025 rate is 4.1%, while the normal contribution rate for qualified employers is 3.4%. Overall, rates for experienced employers in 2025 range from a low of 2.1% to a high of 9.9%.
New York employers also contribute to the Federal Unemployment Tax Act (FUTA) and may be subject to an Interest Assessment Surcharge. This surcharge, about $15 per employee in 2024, helps the state repay federal loans used to fund its unemployment trust fund. Employers must file the Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (Form NYS-45) electronically. These reports are due by April 30, July 31, October 31, and January 31 for the preceding calendar quarters.
Employers must maintain accurate records for at least three years, detailing employee names, addresses, social security numbers, total remuneration paid, and payroll periods. They must also provide a Record of Employment (Form IA 12.3) to all separating employees.
How NY SUI Supports Workers
The funds collected through SUI contributions are specifically allocated to pay unemployment benefits to eligible individuals. These benefits provide temporary income replacement, helping unemployed workers manage their finances while actively searching for new employment opportunities.
Eligibility for unemployment benefits is determined by specific criteria set by the NYSDOL. Generally, individuals must have lost their job through no fault of their own, meet minimum earnings requirements during a specified base period, be ready and able to work, and actively seek new employment. While benefit amounts vary based on past earnings, weekly benefits typically range from $104 to $504. The maximum weekly benefit amount is set to increase significantly to $869 per week starting October 6, 2025.
Unemployment benefits in New York can be received for up to 26 full weeks within a year. This temporary assistance allows individuals to focus on their job search.