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The unemployment system is such a mess though! FUTA has been around since the 1930s and we're still dealing with outdated systems and impossible phone lines. Sure, it funds the benefits, but what good is that when people can't even get through to NYS Department of Labor to file their weekly claims or resolve adjudication issues? The whole thing needs an overhaul.
FUTA was actually created during the Great Depression as part of the Social Security Act of 1935. It's designed to provide a federal backstop for state unemployment programs - so when states like New York run low on unemployment funds during recessions, the federal government can provide loans. The 6% federal tax rate Theodore mentioned can be reduced to 0.6% if states meet federal requirements, which is why most employers end up paying much less in FUTA than the headline rate suggests. It's really about creating a nationwide safety net that operates through state programs like NYS Department of Labor.
Wait, I thought if you got fired you couldn't get unemployment? My friend told me only people who get laid off can collect benefits. Now I'm wondering if I missed out when I got fired from my restaurant job six months ago...
@Mateo Perez - definitely apply right away! The fact that you were fired right after requesting medical time off is a huge red flag and could actually work in your favor. New York has strong protections for employees who need medical leave. When you file your claim, make sure to mention the timeline - that you requested medical time off and were suddenly fired for "performance issues" with no prior warnings. Document everything you can remember about the situation. Even if they initially deny your claim, you have a strong case for appeal. Don't let them intimidate you out of filing - you've been paying into this system and you deserve these benefits when you need them.
This is really good advice! The timing of your firing right after requesting medical leave definitely sounds suspicious. I'd also suggest keeping records of any texts, emails, or documentation from when you requested the time off. If you have anything in writing that shows you followed proper procedures for requesting medical leave, that could really help your case. The fact that you had no prior write-ups after 8 months makes their "performance issues" claim look pretty weak too.
UPDATE: I completed the ID.me verification using my current email and it worked fine! The system asked me to verify my phone number, upload my driver's license, and do a video selfie. The whole process took about 15 minutes. Now I'm waiting to see if/when my unemployment payments will start coming through. Thank you everyone for your help!
Congrats on getting through the ID.me verification! Just a heads up - keep an eye on your NYSDOL account over the next few days. Sometimes there can be a delay between ID.me completing and your unemployment account actually updating to show you're verified. If you don't see any changes in your payment status within a week, definitely call or use one of those callback services people mentioned. The 3-week wait you've already had is way too long, so hopefully this gets things moving for you quickly!
Don't waste your time calling KeyBank. I spent months dealing with the same issue and the ONLY thing that worked was getting through to someone at the actual unemployment office who manually fixed something on their end. Try claimyr.com to get through - worked for me after weeks of failure.
I'm dealing with the exact same nightmare! My KeyBank app has been completely useless for over a month now. Every time I try to log in, it just gives me some generic error message. I've called their customer service line probably 10+ times and each rep tells me something different - "clear your cache," "update the app," "wait 24-48 hours for system maintenance," etc. Nothing ever works! I'm so frustrated because I have rent due and can't even check if my unemployment payment went through. Has anyone had any luck with that Consumer Financial Protection Bureau complaint route that @Luca Conti mentioned? I'm getting desperate here and willing to try anything at this point. This whole system is absolutely broken.
@DeShawn Washington I feel your pain! I'm going through the exact same thing right now. The CFPB complaint route does seem promising based on what others are saying. I'm also thinking about trying that claimyr service that @Javier Torres and others have mentioned - seems like multiple people here have had success getting through to actual unemployment agents that way. At this point I m'willing to pay a service fee if it means I can actually access my own money! Let me know if you try the CFPB complaint and how it goes.
Shelby Bauman
Just to clarify since there seems to be some confusion - the Federal Unemployment Tax Act (FUTA) rate that employers pay is 6.0% on the first $7,000 of wages, but they get credits that usually bring it down to 0.6%. That's completely separate from how your benefits are taxed when you receive them. Your UI benefits are taxed as ordinary income at whatever your regular federal tax rate is.
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Raj Gupta
Thanks everyone for the helpful explanations! I'm in a similar boat - received unemployment benefits last year and didn't realize I should have set up withholding. For anyone else reading this, I found that the NYS Department of Labor website has a tax withholding calculator that can help estimate how much you might owe. Also, if you can't afford to pay the full amount at once, the IRS does offer payment plans. Definitely learned my lesson for this year - already set up the 10% federal withholding on my current claims.
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