Just a heads up - if you're running QB Desktop 2022 or older, you might need to manually download the latest tax tables to get the correct 2025 wage base limits. The automatic updates sometimes don't include all the state-specific changes for unemployment insurance.

I work in payroll for a small business in NY and we had this exact same issue earlier this year. After updating the wage base in QB, make sure you also run a liability adjustment report to see if any employees were incorrectly charged UI tax on wages above $12,800. You might need to process manual adjustments for those employees and file amended returns with NYS Department of Labor if the overage was significant. Also, double-check that your company's SUI rate is correct in the system - sometimes QB doesn't pull the right rate from your Department of Labor account.

Thanks everyone for the detailed responses! This is really helpful. I think I understand the basics now - report gross income, they reduce benefits by 25% of anything over $143, and my claim stays active even if I earn too much one week. One more question though - since this is freelance web design work, how do I handle it if the client pays me with a 1099 at the end of the year instead of weekly? Do I still report it the week I do the work even though I haven't actually received payment yet? And should I be setting aside money for taxes on both the freelance income AND the unemployment benefits?

One thing to add about freelance work while on unemployment - make sure you understand the difference between "work" and "earnings" when reporting. Even if you spend 10 hours working on a project but haven't finished it yet (so no payment earned), you still need to report those work hours on your weekly claim. NYS Department of Labor looks at both the amount you earned AND the number of days you worked. If you work 4 or more days in a week, even for just a few hours each day, it can affect your benefits differently than just the earnings calculation. I learned this the hard way when I was doing small freelance projects - I was only reporting the money but not the actual work days, which caused issues later when they audited my claim.

If you're having trouble getting through to NYS Department of Labor to ask questions about this, I used a service called Claimyr recently that actually got me connected to a real agent. You can check it out at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. It was super helpful when I had questions about my partial benefit calculation and couldn't get through on the regular phone lines.

I went through this exact situation last year! The key thing to remember is that you need to be "totally or partially unemployed" to qualify, which you definitely are since you lost your main job. When you file your weekly claims, make sure to report your retail hours and earnings accurately. Also, keep good records of your work schedule and pay stubs from the part-time job - NYS Department of Labor sometimes asks for documentation during reviews. One tip: if your retail hours vary week to week, your unemployment benefit will adjust accordingly, so some weeks you might get more UI benefits than others depending on how much you worked.

Wait I'm confused about something similar - if I'm working 35 hours a week but making way less than my old job, do I still qualify for anything? I thought unemployment was only if you're completely out of work.

I went through this exact same situation when I was laid off from my administrative job and picked up part-time hours at a grocery store. The NYS Department of Labor considers you partially unemployed, not fully unemployed, but you still qualify for benefits. The important thing is to report every penny you earn during your weekly certification - they'll automatically calculate how much your benefit gets reduced based on your part-time wages. I found it helpful to keep a simple log of my hours and earnings each week to make sure I was reporting accurately. Also, don't forget you can earn up to a certain amount (I think it's around $143 per week) without any reduction to your benefits at all.

This is really concerning - sounds like your family might owe back unemployment taxes to NYS Department of Labor if they've been misclassifying you all this time. At $18/hour for 8 months, you're definitely over that $500 quarterly threshold. I'd recommend documenting everything about your work arrangement (schedule, how they direct your work, etc.) in case you need to prove employee status later. The good news is that even with misclassification, you should still be eligible for unemployment benefits once NYS Department of Labor reviews your case. Just be prepared that it might take longer to process than normal claims.

You're absolutely right to be concerned about this situation. As someone who's dealt with household employment issues before, I can confirm that nannies are almost always employees, not independent contractors. The IRS has specific guidelines about this - if the family controls when, where, and how you work (which they clearly do), you're an employee. At $18/hour for 8 months, your family should definitely be paying unemployment taxes to NYS Department of Labor. The fact that you're getting a 1099 suggests they're either unaware of their obligations or trying to avoid them. I'd strongly recommend having a conversation with them about proper classification - they could face penalties for misclassification, and you deserve proper employee protections and benefits. You can find more info about household employee requirements on the NYS Department of Labor website.