City & State (NY): Correcting disinformation about the excluded workers fund

Technically, no employee in New York pays into unemployment as it’s a tax on employers, but their employment is what leads to the pay-ins. While it’s impossible to know whether every person who will receive benefits has paid state, local or federal taxes, the available research shows that the majority of undocumented immigrants do pay taxes. According to a 2020 report conducted by the Institute on Taxation and Economic Policy, undocumented immigrants in New York are responsible for the payment of $1.4 billion into state and federal unemployment insurance over the past decade. It was the first study of its kind, but past national research has shown that anywhere between 50% and 75% of undocumented people pay income taxes, and they contribute billions of dollars a year nationwide in taxes. So while they are ineligible for the traditional benefits, many do pay into them. And despite claims otherwise, the majority of data on the subject conclude that immigrants, undocumented or otherwise, help economic growth in the country, and generally contribute more than they receive back. Read more