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I'm in a similar boat - my company just announced layoffs for next month and I'm trying to figure out the best approach. From reading everyone's responses, it sounds like taking the severance is definitely the way to go. I'm curious though - does anyone know if there are any tax implications I should be aware of when receiving both severance and unemployment benefits? I want to make sure I'm setting aside enough for taxes since this will probably put me in a weird income situation for the year. Also, has anyone had experience with how this affects health insurance coverage? My COBRA will kick in but I'm wondering if the severance payment timeline impacts when I might qualify for marketplace subsidies.
Great questions about the tax and health insurance aspects! For taxes, both severance and unemployment benefits are taxable income, so you're right to think about setting money aside. You can have taxes withheld from your UI benefits when you file your weekly certifications - I'd recommend doing that to avoid a big tax bill later. As for health insurance, the severance timing shouldn't directly affect marketplace subsidy eligibility, but your total annual income (including both severance and UI benefits) will be considered when they calculate any premium tax credits. You might want to consult with a tax professional since everyone's situation is different, but definitely keep good records of all payments and dates. The health insurance piece can get tricky with the timing between employer coverage ending, COBRA starting, and potential marketplace enrollment periods.
I went through a similar layoff situation about a year ago and can confirm what others have said - definitely take the severance! The key thing to understand is that NYS Department of Labor considers severance as "deductible income" which means it reduces your weekly benefit amount dollar-for-dollar during the period it covers, but it doesn't disqualify you from unemployment entirely. So if your severance equals your normal weekly pay for 8 weeks, you'll likely get $0 in UI benefits for those 8 weeks, but then your full benefits will kick in after that. File your claim immediately after your last day of work though - don't wait for the severance period to end. This way you'll already be in the system and your benefit year will have started. Also, make sure you accurately report the severance amount each week when you do your certifications. The whole process was actually more straightforward than I expected once I understood how it worked.
omg this is exactly what happened to my sister except she didnt report it at first because she thought it was just a one time thing and then they found out somehow and she had to pay back like $1200 ðŸ˜
I'm dealing with something similar right now! Been on unemployment for about 3 months and just started getting some freelance web development gigs. What I learned is that you need to report the income in the week you actually receive the payment, not when you do the work. So if you complete that $800 project over 2 weeks but get paid all at once in week 3, you report the full $800 in week 3. Also keep detailed records of everything - dates, amounts, what the work was for. The NYS system will calculate your benefit reduction automatically once you enter the earnings. And don't worry about the 1099 aspect affecting your claim status - lots of people do contract work while collecting. Just be honest and report everything!
This is super helpful, thanks! So just to make sure I understand - if I do the work over 2 weeks but get one lump payment of $800 in week 3, I only report it in week 3? And during weeks 1 and 2 when I'm actually doing the work, I don't report anything? That seems counterintuitive but I want to make sure I do this right.
This is absolutely infuriating! I'm dealing with the exact same thing - payments randomly stopped 10 days ago with just "pending" status and ZERO communication from them. I've literally called 87 times (yes, I'm keeping count because I'm going insane) and can't get through to a single human being. It's like they want us to just give up and disappear. Reading through everyone's experiences here, it's clear this is happening to tons of people and it's probably those random "verification" flags they're throwing around because of fraud concerns. The fact that they can just freeze our lifeline without even sending an email is absolutely criminal. I'm definitely going to try the assembly member route first thing Monday morning, and if that doesn't work fast enough I might have to bite the bullet and try that Claimyr service everyone's mentioning. Has anyone had luck with the Twitter approach @NYSLabor? At this point I'm willing to try literally anything. We shouldn't have to jump through these insane hoops just to find out why our own benefits got cut off!
87 calls?! I thought my 48 was bad but you've got me beat 😠This is absolutely ridiculous that we're all going through the same nightmare. I'm going to start with my assembly member on Monday too - seems like that's our best bet for getting actual human help without paying for it. If you try the Twitter thing let me know how it goes! We definitely shouldn't have to become detectives just to figure out why our benefits disappeared into thin air.
I'm so sorry you're going through this - the system is absolutely broken! I'm in a similar boat where my payments just vanished with no explanation about 2 weeks ago. After reading through everyone's experiences here, it's clear this is happening to SO many people because of these random verification flags they're throwing around. Here's what I've learned from this thread that seems most promising: 1. Contact your assembly member's office ASAP - multiple people say they have direct lines to DOL and can get faster responses 2. Try the Twitter approach @NYSLabor - seems hit or miss but worth a shot 3. If you're desperate and can afford it, several people have had success with Claimyr.com for actually getting through to a human The fact that we're all dealing with identical situations (payments stopped, "pending" status, zero communication) makes it obvious this is systematic rather than individual account issues. Don't give up - you have every right to those benefits and answers about what happened! Keep us posted on what works for you because we're all fighting the same battle here.
The whole system is ridiculous if you ask me. You pay into unemployment insurance your whole career and then they cap how much you can get back. Meanwhile the cost of living keeps going up but the max benefit barely increases each year!
I totally agree! It's frustrating that the maximum benefit hasn't kept pace with inflation. $504 per week sounds decent until you realize that's only about $26K annually if you're unemployed for a full year. In NYC especially, that barely covers rent let alone other expenses. The system definitely needs an overhaul.
Just wanted to add some clarity on the timing aspect - if you're considering taking that full-time position, remember that your base period for unemployment benefits is calculated using completed quarters. So if you take the job now, those higher earnings won't factor into your benefit calculation until several months later when those quarters become part of your base period. NYS Department of Labor uses a lag system, so there's always a delay between when you earn the money and when it counts toward your UI benefits. Something to keep in mind for your planning!
That's a really important point about the timing lag! So even if I take the full-time position now and earn more, those higher wages won't help my unemployment benefits for several months? That definitely changes my calculation. Do you know exactly how long the delay is? Like if I start earning more in January, when would those earnings actually count toward my base period for UI purposes?
Sophia Carson
Before you go in person, try clearing your browser cache and using a different browser or device. Sometimes the my.ny.gov site works better on different browsers. Also make sure you're using the most current version of whatever browser you're using.
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Axel Far
I went through the same frustrating experience with the online system last month. What finally worked for me was going to my local One-Stop Career Center - they have staff who can help you file online using their computers and internet connection. Even if the system is being glitchy, they know workarounds and can help troubleshoot in real time. You can find your nearest location on the NYS Department of Labor website. Much better than trying to figure it out alone at home!
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Keisha Taylor
•That's really helpful advice! I didn't know the One-Stop Career Centers could help with the online filing process. Do you know if they require appointments or can you just walk in? I'm wondering if that might be faster than waiting on hold for hours trying to call.
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