I've been getting NY unemployment for about 5 months now with Ally Bank (online bank). My payments are consistently 1-2 business days after showing "released" - usually on the faster side since online banks often process ACH transfers quicker than traditional brick-and-mortar banks. What really helped me in the beginning was understanding that "released" just means the state has authorized the payment, but it still has to go through the federal ACH network which has its own processing times. It's like when you mail a letter - dropping it in the mailbox doesn't mean it instantly arrives at its destination. For anyone still anxiously waiting, I'd recommend checking if your bank has a "pending transactions" section in their app or website. Sometimes you can see the deposit there before it officially posts to your available balance. Also, if you're really stressed about it, most banks have 24/7 customer service that can tell you if they see any pending unemployment deposits coming through their system. Hang in there - the money is coming!

I'm also waiting on my first NY unemployment payment and this whole thread has been incredibly helpful! I'm with Capital One and it's been 3 business days since my payment showed "released" - was starting to get really worried but sounds like 3-5 days for the first payment is totally normal. The tip about setting up bank alerts is brilliant, just did that so I can stop obsessively checking my account balance every hour. It's so reassuring to hear from people who've been through this process multiple times that the money always comes through eventually. Thanks everyone for sharing your experiences and timeline details - really helps calm the nerves when you're new to the whole system!

I'm in a similar boat - just started collecting unemployment last week and have been stressing about my small tutoring side business. Reading through these responses is super reassuring! One thing I learned from my caseworker is that you also need to keep good records of your freelance income in case they ever audit your claim. I've been tracking everything in a simple spreadsheet with dates, client names, and amounts earned. Also wanted to add that the $504 threshold Hannah mentioned can change year to year, so it's worth double-checking the current amount on the NYS DOL website when you file your weekly claims.

Great thread everyone! Just wanted to add that when you're reporting your freelance income on the weekly claims, make sure you report it for the week you actually EARNED it, not when you got paid. So if you completed a project on Tuesday but didn't get paid until the following week, you report that income for the week you did the work. This tripped me up initially because I was reporting based on when payments hit my bank account. Also, if you have any business expenses related to your freelance work (like software subscriptions, supplies, etc.), you can usually deduct those from your reported income - but definitely verify this with NYS DOL since rules can be specific about what qualifies as legitimate business expenses.

I went through this exact situation last year and here's what I learned: NYS Department of Labor will send you a notice about 3-4 weeks before your benefit year ends explaining your options. If you haven't worked enough to qualify for a new claim, they'll automatically check if extended benefits are available based on the state's unemployment rate. If extended benefits aren't triggered, you might still be eligible for other programs like Trade Adjustment Assistance if your job loss was trade-related. The most important thing is to keep filing your weekly claims even if there's uncertainty - don't stop until you get official word that your benefits have ended. Also, make sure your contact info is updated in the system so you don't miss any important notices.

I'm going through the same thing right now - about 3 weeks left on my benefits and getting really anxious about what comes next. From what I've been able to piece together from the NYS DOL website, you should get a notice in the mail explaining your options, but honestly their communication isn't always clear or timely. I've been keeping detailed records of all my job search activities just in case I need to prove I've been actively looking. One thing that's helped me is setting up an appointment at my local American Job Center (you can find locations on careeronestop.org) - they have counselors who can walk you through the different programs and extensions you might qualify for. They also help with resume review and job search strategies which has been useful since I've been out of work for so long. It's free and way less stressful than trying to navigate the system on your own.

Yeah they definitely don't automatically withhold. I forgot to elect it my first few weeks and had to call to change it. The tax withholding election stays in place for all your future weekly claims once you set it up, so you don't have to keep selecting it every week.

Just to add some perspective as someone who's been through this - I'd strongly recommend electing the tax withholding right from the start. I made the mistake of not doing it initially thinking I'd handle it myself, and it was a nightmare trying to calculate and make quarterly payments while already stressed about being unemployed. The 10% federal and ~3.5% NY state withholding won't cover everything if you have other income, but it's a good safety net and way less stressful than owing a lump sum at tax time.

I'm dealing with the EXACT same issue right now! Been trying for 3 days straight with my Chase account and getting that same error message every single time. It's so frustrating because I know the routing number (121000497) and account number are 100% correct - I've checked them against my checks, online banking, even called Chase to verify. The most annoying part is that the error message makes it sound like there's something wrong with my account type, but it's just a regular checking account I've had for years. I've used this same account for direct deposit with other employers without any issues. Reading through all these responses, it sounds like calling the unemployment office is really the only solution, even though getting through seems nearly impossible. I might try that Claimyr service someone mentioned since I literally cannot afford to spend 3+ hours on hold every day trying to get through. Has anyone had success just waiting it out? Like, does the system sometimes randomly start accepting the same routing number after a few days? Or is this definitely something that requires human intervention to fix?

I'm going through this exact same nightmare right now! Been stuck on this routing number error for Chase for almost two weeks. What's really frustrating is that I used this same account for my state tax refund direct deposit just last month with zero issues, so I know the routing and account numbers are correct. I tried calling Chase yesterday and the rep confirmed my routing number (121000497) is correct for both checks and electronic transfers - no separate ACH number needed. But the NY DOL system still rejects it every single time with that same "traditional checking account" error message. I'm honestly about to just give up and take the KeyBank card at this point. The whole system is clearly broken and I can't afford to keep waiting for benefits while trying to fight with their glitchy website. It's ridiculous that in 2025 we still can't get a basic direct deposit to work properly. Has anyone who ended up taking the debit card regretted it? Like are there hidden fees or other issues I should know about before I throw in the towel on direct deposit?