Can a sole proprietor collect unemployment benefits in New York - NYS Department of Labor eligibility question
I've been running my own small consulting business as a sole proprietor for the past 8 months but work has completely dried up. My accountant mentioned I might be able to get unemployment but I thought that was only for employees? I've been paying quarterly estimated taxes but not sure if I was paying into unemployment. Has anyone who's self-employed been able to collect NYS Department of Labor benefits? I'm really struggling to make ends meet and could use some guidance on whether it's even worth applying.
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Brooklyn Knight
Unfortunately, sole proprietors typically aren't eligible for regular unemployment insurance in New York because you haven't been paying into the UI system as an employee would. However, there are some exceptions if you've had W-2 employment recently. NYS Department of Labor looks at your base period earnings from employers who paid unemployment taxes on your behalf. If you had any employee income in the last 18 months, you might qualify based on those wages.
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PrinceJoe
•I did work a part-time job for about 6 months last year while building my business. Would that count toward the base period? The income wasn't huge but it was steady W-2 work.
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Owen Devar
You need to look at your wage history on the NYS Department of Labor website. Log into my.ny.gov and check what wages they have on file for you. If you had enough W-2 earnings during your base period (usually the first 4 quarters of the last 5 completed calendar quarters), you can file a claim. The fact that you're currently self-employed doesn't automatically disqualify you from benefits based on previous employee wages.
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PrinceJoe
•That makes sense. I'll check my wage history tonight. Do you know what the minimum earnings requirement is to qualify?
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Brooklyn Knight
•For 2025, you need at least $2,600 in covered wages during your base period, and wages in at least two quarters. There's also a weekly benefit calculation based on your highest quarter earnings.
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Daniel Rivera
I'm in a similar situation and tried calling NYS Department of Labor to ask about this but couldn't get through to anyone! The automated system just kept hanging up on me after being on hold for over an hour. This is so frustrating when you're trying to figure out if you even qualify.
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Sophie Footman
•I had the same problem with their phone lines. I ended up using this service called Claimyr (claimyr.com) that helped me get through to an actual NYS Department of Labor agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Basically they handle the calling and waiting for you, then connect you when an agent is available. Made it so much easier to get my eligibility questions answered.
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Connor Rupert
just file the claim online and see what happens. worst case they deny it but at least you'll know for sure. the NYS Department of Labor system will tell you if you have enough wages to qualify
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Brooklyn Knight
•While that's one approach, it's better to understand your eligibility first. Filing a claim when you're clearly not eligible can sometimes create complications, especially if you're still operating your business.
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Molly Hansen
One important thing to consider - if you do qualify based on previous W-2 wages, you'll need to be available for work and actively job searching. Running your sole proprietorship while collecting benefits could be tricky depending on how much time you're dedicating to it. NYS Department of Labor requires you to be able and available for full-time work.
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PrinceJoe
•Good point. My business is basically dead right now anyway, so I'd definitely be available for full-time employment. I've actually been looking for regular jobs since the consulting work dried up.
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Zoe Papanikolaou
I went through this exact situation last year. As a former sole proprietor who had some W-2 income, I was able to qualify for benefits. The key is that NYS Department of Labor looks at ALL your covered wages during the base period, not just your most recent employment status. Since you mentioned having part-time W-2 work last year, definitely check your wage history first. Also, when you do apply, be completely transparent about your consulting business status - they'll ask about any self-employment income during your weekly certifications. If your business truly has no income coming in and you're genuinely seeking employee work, you should be fine. Just make sure you can document your job search efforts.
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