I was in your exact same position last year - totally clueless about the tax implications and stressed about making the wrong choice! After going through it, I can tell you that choosing the withholding option was absolutely the right call. Here's what I wish someone had told me upfront: unemployment benefits are taxed just like regular income, so every dollar you receive will be subject to both federal and NY state taxes. The 10% federal withholding they offer will handle a good chunk of your federal tax obligation, but you'll likely still owe NY state taxes (usually around 4-8% depending on your income level). When I calculated it out, I received about $8,000 in benefits over 4 months, and without any withholding I would have owed roughly $1,200 in total taxes. With the 10% federal withholding, I only ended up owing about $300 at tax time - so much more manageable! The peace of mind alone is worth getting those smaller weekly payments. Plus, if you end up finding work quickly, you'll still be glad you had some taxes withheld since all those unemployment benefits count as taxable income for the year regardless of when you received them.

I just went through this decision myself a few months back and completely understand your confusion! The NYS Department of Labor website doesn't explain it very clearly. Here's my advice based on what I learned: absolutely choose the withholding option. Unemployment benefits are fully taxable income at both federal and state levels. The 10% federal withholding won't cover everything you'll owe (you'll still likely owe NY state taxes), but it makes a HUGE difference. I received about $12,000 in benefits over 5 months, and without any withholding I would have owed around $1,800 total in taxes. With the 10% federal withholding, I only owed about $400 at tax time. That $400 was manageable - $1,800 all at once would have been devastating. Think of it as paying taxes as you go rather than getting hit with a massive bill later. You can always change your withholding preference later through your online account if needed, but I'd strongly recommend starting with it. The slightly smaller weekly payments are so worth avoiding that tax season panic!

This is really helpful info everyone! I'm dealing with a similar situation where I was laid off but worried my employer might report it differently. Quick question - is there a way for us to see what our employer actually submitted on the separation notice, or do we only find out if there's a problem during adjudication? Want to make sure I'm prepared in case there are any discrepancies when I file my claim.

One thing to keep in mind is that the separation notice also includes information about any severance pay or vacation payout you received. This can affect when your benefits start since NYS considers some types of separation pay as wages that might delay your first payment. When you file your claim, make sure to report any final payments accurately - including vacation time, sick leave buyouts, or severance. The separation notice will have all these details, so consistency is key to avoiding delays in processing.

UPDATE: I finally got through to someone at unemployment! For anyone who might have the same issue in the future - I uploaded my documents (though I was late) and then called using the Claimyr service that someone mentioned below. Got through to an agent who was actually really understanding. She put a note on my account about the late submission and assured me my benefits won't be interrupted. Such a relief! Thanks everyone for your help and advice!

Great to see this worked out! For anyone else reading this thread, I'd recommend setting up email notifications or calendar reminders immediately when you receive any correspondence from NYSDOL. I learned this the hard way after missing a deadline last year. Also, if you're ever unsure about any unemployment-related deadlines or requirements, don't hesitate to reach out to this community - there are clearly some very knowledgeable people here who are willing to help!

I'm dealing with the same exact thing right now! Filed in August but my waiting week shows a date from October. I was totally freaking out thinking they messed up my claim somehow, but after reading all these responses it seems like their system just shows random processing dates that don't match reality at all. The NY unemployment system is seriously the most confusing thing I've ever dealt with. I've been getting my regular weekly payments though, so I guess that's what actually matters. Still might try calling just to double-check everything is correct with my claim - better to be paranoid than miss out on benefits! Thanks everyone for explaining how this works, you probably saved me hours of stress wondering if something was wrong 😅

I had the EXACT same confusion when I first checked my account! Filed in June but my waiting week showed up with a random date in September. I spent like 2 hours thinking they completely screwed up my claim. Turns out it's totally normal - that date is just when their system processed the waiting week administratively, not when you actually served it. The NY unemployment system is seriously ancient and shows these weird backend processing dates that never match up with reality. As long as you're getting paid for the weeks after your waiting week, you're good to go. I'd still recommend calling to double-check your effective claim date though - a few people mentioned having issues with that and losing weeks of benefits. The phone lines are brutal but it's worth the peace of mind! Don't stress too much about those confusing dates - focus on whether your payments are coming through correctly for the weeks you've certified 👍

also make sure you file your claim as soon as possible after losing your job! there's no waiting period in NY but you can't get benefits for weeks before you actually file your claim. i made that mistake and lost out on like 2 weeks of benefits because i waited too long thinking about whether i qualified

Based on what you've described, you should definitely qualify! Being laid off due to the business closing absolutely meets the "no fault of your own" requirement. With 8 months at your restaurant job plus 6 months at retail before that, you likely have enough work history. The key things to check: 1) Make sure both employers reported your wages to NYS (you can verify this on my.ny.gov like someone mentioned), 2) Calculate if you earned at least $2,600 in your highest earning quarter, and 3) File ASAP since you can't get benefits for weeks before you actually apply. Don't overthink it - even if you're unsure about meeting all requirements, it's better to apply and let them determine your eligibility than to miss out on benefits you're entitled to.