Can I collect unemployment if I own a business - NYS Department of Labor eligibility question
I started a small consulting business about 8 months ago but it's barely bringing in any income. Maybe $200-300 some months, sometimes nothing at all. I had to take a part-time job to pay bills but they just cut my hours down to almost nothing. Can I file for unemployment benefits with NYS Department of Labor even though I technically own this business? I'm really confused about how this works and whether having my LLC disqualifies me automatically.
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Astrid Bergström
This is actually a complex situation with NYS Department of Labor. You CAN potentially collect unemployment as a business owner, but there are strict requirements. The key factors are: 1) Your business income must be minimal (which yours seems to be), 2) You need to be available for full-time work, 3) You have to report any business income weekly, and 4) Your business can't interfere with accepting suitable employment. Since you mentioned working part-time, that employment history might make you eligible if you meet the wage requirements.
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Ravi Patel
•Thank you! So I should report the business income on my weekly claims even if it's just like $50 that week?
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Astrid Bergström
•Yes, absolutely report ALL income from your business on your weekly claims. Even $1 needs to be reported. NYS Department of Labor will determine how it affects your benefits, but failing to report can cause serious issues with your claim.
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PixelPrincess
i had a similar situation last year. owned a small online store but was making basically nothing from it. nysdol approved my claim but i had to keep detailed records of everything and report any money that came in. they reduced my benefits some weeks when i made sales but didnt cut me off completely
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Ravi Patel
•That's encouraging to hear! Did they ask for documentation about your business when you applied?
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PixelPrincess
•yeah they wanted to see my business registration and some financial records during the application process. nothing too crazy though
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Omar Farouk
You'll need to be very careful about demonstrating that you're available for full-time work. NYS Department of Labor might question whether running a business, even a small one, interferes with your ability to accept employment. During your job search, you need to show you're genuinely looking for regular employment and would take a suitable job if offered. Keep excellent records of your job search activities and be prepared to explain how you'd handle the business if you got hired somewhere.
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Ravi Patel
•Good point about the job search requirements. I've been applying to regular jobs anyway since the business isn't sustainable right now.
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Chloe Martin
Wait this is confusing me... if you own a business aren't you considered self-employed? I thought self-employed people can't get regular unemployment benefits at all? Or is that only for certain types of businesses?
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Astrid Bergström
•Self-employment doesn't automatically disqualify you from unemployment benefits in New York. It depends on the nature and extent of the business activity. If the business is minimal and doesn't prevent you from being available for work, you may still qualify based on your W-2 employment.
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Chloe Martin
•oh ok that makes more sense. so it's more about whether the business is like a real full time thing vs just a side hustle that barely makes money
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Diego Fernández
I've been trying to get through to NYS Department of Labor for weeks about a similar question and their phone lines are always busy or I get disconnected. Has anyone found a reliable way to actually speak with someone there? I need to clarify some details about my situation before I file.
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Anastasia Kuznetsov
•I had the same problem until someone recommended Claimyr to me. It's a service that helps you get through to NYS Department of Labor agents by phone. I used claimyr.com and they have a video demo showing how it works (https://youtu.be/qyftW-mnTNI). Finally got my questions answered after weeks of trying on my own.
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Diego Fernández
•Thanks for the tip! I'll check that out. Getting through to them has been impossible lately.
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Sean Fitzgerald
just want to add that you should definitely consult with someone knowledgeable before filing. the rules around business ownership and unemployment can be tricky and you don't want to mess up your claim by providing wrong information upfront
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Ravi Patel
UPDATE: I decided to file and was upfront about my business during the application. Got approved! They did ask for some additional documentation about my business income and I have to report any earnings weekly, but my claim is active. Thanks everyone for the advice.
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Astrid Bergström
•That's great news! Make sure to keep detailed records of all your business activities and income going forward. And remember that if your business income increases significantly, it could affect your continued eligibility.
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PixelPrincess
•awesome! glad it worked out for you. definitely keep track of everything like the other person said
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Liam Fitzgerald
Congratulations on getting approved! Your success story is really helpful for others in similar situations. I'm curious - how long did the whole application process take from when you first filed to getting your approval? And did they give you any specific guidelines about what level of business income might start affecting your benefits? I'm in a somewhat similar boat with a side business that's not making much, so your experience is really valuable to know about.
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Lia Quinn
•Great questions! The whole process took about 3 weeks from filing to approval. They didn't give me a specific dollar threshold, but the caseworker mentioned that if my business income starts approaching what I would make from regular employment, that could impact my eligibility. They basically said as long as it stays minimal and I'm genuinely available for full-time work, I should be okay. Just make sure you're completely transparent about everything from the start - that seemed to help my case a lot.
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