Can W2 contractors get NYS Department of Labor unemployment benefits?
I've been working as a W2 contractor for the past 8 months through a staffing agency. My contract just ended and I'm wondering if I can file for unemployment benefits with NYS Department of Labor? I was getting a regular W2 and they were taking out taxes, but I'm not sure if contractors are eligible. Has anyone been in this situation before?
11 comments


Miguel Ramos
Yes, W2 contractors are generally eligible for unemployment benefits in New York! Since you received a W2 and had taxes withheld, you were considered an employee for unemployment purposes. The key is that unemployment taxes were likely being paid on your behalf. You should definitely file a claim with NYS Department of Labor.
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Ava Martinez
•That's a relief! Do I need to provide any special documentation since it was contract work?
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QuantumQuasar
I was in almost the exact same situation last year. Worked through a temp agency for 6 months, got laid off, and NYS Department of Labor approved my claim without any issues. Just make sure you have your W2 and any documentation about when your contract ended.
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Zainab Omar
•How long did it take for your claim to get approved? I'm worried about delays.
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Connor Gallagher
wait i thought contractors couldn't get unemployment?? this is confusing
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Miguel Ramos
•There's a difference between W2 contractors (employees) and 1099 independent contractors. W2 means you're an employee for tax and unemployment purposes, even if it's temporary work.
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Yara Sayegh
I had trouble reaching someone at NYS Department of Labor to confirm my eligibility when I was in a similar situation. Kept getting busy signals and their online chat was useless. Finally used a service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped clarify my situation quickly.
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Ava Martinez
•Thanks for the tip! The phone lines have been impossible to get through to.
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Keisha Johnson
The NYS Department of Labor system is SO confusing about this stuff. I've been contracting for years and never knew W2 contractors could get benefits. They should make this clearer!
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Luca Russo
I agree that NYS should make this clearer! I think a lot of people miss out on benefits they're entitled to because the distinction between W2 contractors and 1099 contractors isn't well explained. For anyone reading this thread, the general rule is: if you got a W2 and had payroll taxes taken out, you were likely an employee for unemployment purposes regardless of whether it was called "contract work." The staffing agency was probably paying unemployment insurance on your behalf. Definitely worth filing a claim!
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Jade Lopez
This is really helpful information! I'm currently a W2 contractor through a staffing agency and wasn't sure about my eligibility either. It's good to know that having taxes withheld and getting a W2 makes you eligible. I've been saving up just in case my contract ends, but it's reassuring to know unemployment benefits are an option. Thanks for asking this question - I'm sure lots of people are in similar situations and don't know their rights!
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