Tag Archives: Payroll Tax Management

New York Raises Unemployment Benefits: What Employers Need to Know Starting October 13

Significant changes are on the horizon for New York businesses this fall. Beginning October 13, the state will officially increase the maximum weekly unemployment insurance (UI) benefit from $504 to $869, a major boost for unemployed workers and a move that reflects New York’s stronger economic position.

For job seekers, this means more financial stability during unemployment. But for employers, the story is a little different. While the increase aims to help working families, it can also raise long-term costs for businesses, especially those with frequent unemployment claims or inconsistent HR processes.

Let’s break down what this change really means, and how New York employers can prepare to manage the ripple effects before they hit their bottom line.

Why New York Is Raising Benefits

After years of pandemic-related strain, New York’s Unemployment Insurance (UI) Trust Fund is finally back on solid ground. During COVID-19, the state borrowed billions to cover record-high claims. Now that the fund has recovered, state leaders, including Governor Kathy Hochul, are increasing the maximum benefit to give unemployed workers a more livable safety net.

The maximum weekly benefit jumps from $504 to $869 as of October 13, 2025. That’s a 70-percent increase, and it represents the first major step in strengthening UI support in more than a decade.

At the same time, New York has paid off its federal UI Trust Fund debt, which means employers will no longer receive annual Interest Assessment Surcharge (IAS) bills. Over the next few years, that could save businesses an average of $100 per employee in 2026 and $250 per employee in 2027.

So while the increase looks positive overall, it’s not without consequences.

What This Means for Employers

In the short term, most businesses won’t notice an immediate change. But in the long run, higher unemployment benefits often translate into higher employer costs, because benefit payments are funded through UI taxes paid by employers.

Here’s what to keep in mind:

Greater benefit payouts = greater cost exposure. When more generous benefits are available, each claim costs more to fund.
Experience ratings matter more than ever. Your company’s unemployment tax rate depends on your claims history. The more claims you have, and the higher their value, the more your rate can rise over time.
HR consistency becomes crucial. Inaccurate termination documentation or delayed claim responses could lead to unnecessary charges.

If left unmanaged, these factors can slowly eat away at your profitability.

How to Protect Your Business

Now that New York’s benefit structure is changing, proactive employers can take a few smart steps to stay ahead.

1. Review Your Unemployment Claims History

Start by auditing your current and past UI claims. Are they valid? Are any claims being charged to your account incorrectly? Contesting even one inaccurate claim can make a difference in your experience rating, and that rating directly affects your tax rate.

2. Strengthen Documentation & Termination Procedures

When an employee is separated, documentation is everything. Keep written records of performance issues, disciplinary warnings, and termination details. This evidence helps protect your company if a claim is disputed.

3. Train Your Managers and HR Team

Many unemployment claims are lost because supervisors didn’t follow the correct procedures. Make sure your management team understands how their actions, from documenting behavior to completing exit interviews, affect your UI costs.

4. Explore Professional Cost Control Support

Partnering with experts who specialize in unemployment cost management can save you time and money. Professionals like Dunn Corporate Resources provide claim auditing, tax rate reviews, and compliance checks to ensure you’re not overpaying due to errors or missed opportunities.

Looking Ahead: A Balancing Act

There’s no denying that higher benefits provide essential relief for workers, and that’s good for the broader economy. But as the system becomes more generous, employers need to be vigilant about managing how those benefits impact their tax obligations.

Keeping unemployment costs under control isn’t just about reacting when a claim comes in. It’s about building consistent internal processes, maintaining accurate records, and using every opportunity to keep your experience rating as low as possible.

Final Takeaway

New York’s new unemployment benefit structure reflects progress and economic resilience. However, it also signals a new era of cost awareness for employers. Businesses that plan ahead will be in the best position to minimize financial strain while staying compliant.

If you’re unsure how this benefit increase will affect your UI tax rate, or if you’d like a no-cost review of your unemployment claims and contribution history, Dunn Corporate Resources can help. Our team specializes in unemployment cost control, tax optimization, and claims management, giving you the clarity and confidence to move forward.

Get in touch today to prepare your business for the upcoming changes and make sure you’re positioned to save where it matters most.

When Should You Appeal an Unemployment Claim? Expert Advice for Employers

Managing business costs is a constant balancing act, and many employers don’t realize that unemployment insurance (UI) taxes can quietly drain thousands of dollars from their bottom line each year.

The good news? With the right strategy and with expert Unemployment Cost Control Services, companies can take charge of this often-overlooked expense and save big.

If you’ve ever felt frustrated watching your UI tax rates go up or puzzled about how to protect your reserve account, this blog is for you.

Why Unemployment Costs Matter More Than You Think

When an employee files for unemployment benefits, your business may be charged for part or all of those claims. Over time, this drives up your experience-rated UI tax rate, increasing what you pay on every employee paycheck.

Many businesses just accept rising UI taxes as “the cost of doing business.” But that’s a costly mistake. Without proactive management, your UI taxes can balloon — even if your overall payroll hasn’t changed much.

That’s where Unemployment Cost Control Services come in.

What Are Unemployment Cost Control Services?

Think of these services as a specialized team that helps you:

Minimize wrongful or excessive unemployment claims
Proactively manage your UI reserve account
Lower your long-term UI tax rate
Stay compliant with changing state laws
Appeal incorrect claims quickly and successfully

By partnering with a firm like Dunn Corporate Resources (Dunncorp), you gain access to deep expertise in unemployment law, claims management, and tax optimization, saving you time and money.

How These Services Save You Money

Here’s what businesses often see when they invest in expert Unemployment Cost Control:

1. Fewer Unjustified Claims Paid Out

Without guidance, many companies unknowingly allow ineligible or improper claims to slip through the cracks. Each one paid raises your tax rate.

Cost control professionals know how to:

Identify invalid claims
Respond with legally sound documentation
Represent your company in hearings

Result? Lower claim costs and lower future tax rates.

2. Smarter Use of Voluntary Contributions

Many states, including Texas (through the TWC Voluntary Contribution option), allow businesses to make a one-time contribution to lower their UI tax rate.

An expert service can help you calculate when this is worth it — and how much to contribute to maximize savings.

3. Strategic Reserve Account Management

If your reserve account runs low, your tax rate skyrockets.
If it’s too high, you may be tying up funds unnecessarily.

An experienced partner like Dunncorp helps you maintain a smart balance — so you stay protected and keep your tax rate as low as possible.

4. Compliance Peace of Mind

State UI laws change frequently. One mistake could result in penalties, audits, or unexpected tax increases.

By working with an expert service, you ensure:

Correct classification of workers
Proper separation documentation
Timely responses to state notices
Ongoing compliance with all state rules

Signs Your Business Could Benefit from Unemployment Cost Control Services

Wondering if this is the right move for you?
You should seriously consider it if:

👉 Your UI tax rate has increased in recent years
👉 You’ve experienced layoffs or turnover
👉 You have limited HR resources for claims management
👉 You’ve struggled to appeal claims successfully
👉 You want to better forecast and manage payroll tax costs

For many companies, even a small reduction in their UI tax rate translates to thousands of dollars in annual savings.

Why Choose Dunn Corporate Resources?

At Dunn Corporate Resources (Dunncorp), we’ve been helping businesses across the U.S. slash unnecessary unemployment costs for more than 30 years.

Here’s what sets us apart:

✔ Deep expertise in state unemployment laws
✔ Proven claims management and appeal success
✔ Customized tax rate forecasting
✔ Strategic guidance on voluntary contributions
✔ Personalized service, no one-size-fits-all templates here

Our clients routinely save significant amounts, and we make the entire process easy and transparent.

Don’t Leave Money on the Table

In today’s economy, every dollar counts. If you’re not actively managing your unemployment tax costs, you’re likely overpaying — often by far more than you realize.

The solution is simple: bring in the experts.

Ready to take control of your UI costs?
Connect with the team at Dunncorp today and discover how our Unemployment Cost Control Services can help you save big — now and in the years ahead.