Can you collect unemployment if you start a business in NY?
I've been unemployed for about 2 months and receiving NYS Department of Labor benefits. I'm thinking about starting a small online consulting business while I look for full-time work. Can I still collect unemployment if I start a business? I don't want to mess up my claim but I need to generate some income. The job market is tough right now and this could help me get by until I find something permanent. Has anyone dealt with this situation before?
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Fatima Al-Hashemi
You can start a business while on unemployment but there are strict rules you need to follow. You must report ALL income from your business activities when you file your weekly claims. Any earnings will be deducted from your benefit amount. Also, you still need to be actively seeking full-time employment and meet the job search requirements. The key is being completely honest with NYS Department of Labor about your business activities.
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NeonNomad
•Thanks for the info! Do I need to report the business income even if I don't make any money some weeks?
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Dylan Mitchell
i started doing freelance work while on unemployment last year and it was fine as long as i reported everything. just make sure you keep good records of all your earnings
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Sofia Martinez
The biggest thing to watch out for is the 'able and available' requirement. If NYS Department of Labor determines that you're too focused on your business to accept full-time employment, they could disqualify you from benefits. You need to demonstrate that you're still genuinely seeking and available for regular employment. Keep detailed records of your job search activities and be prepared to show that your business isn't interfering with your availability for work.
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Dmitry Volkov
•This is so confusing! How do they even determine if you're 'too focused' on the business? Seems really subjective.
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Ava Thompson
I had a similar situation and ended up using Claimyr to get through to a NYS Department of Labor representative to clarify the rules for my specific business type. It saved me a lot of stress because I couldn't get through on the phone for weeks. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Worth it when you need clear answers about something this important.
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NeonNomad
•How much does that service cost? I'm already struggling financially.
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Ava Thompson
•It's much cheaper than losing your benefits because of a misunderstanding. The peace of mind was worth it for me.
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CyberSiren
ugh the whole system is so backwards... they want you to find work but then make it impossible to do anything that might actually help you become self-sufficient. typical bureaucratic nonsense
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Miguel Alvarez
Just be super careful about this. My cousin got in trouble because she didn't report some small payments from her etsy shop and they made her pay back like $2000 in benefits. The penalties are no joke.
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NeonNomad
•Wow that's scary. Did she eventually get it sorted out or did she have to pay the full amount back?
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Liam O'Connor
I went through this exact situation last year when I started doing some freelance web design while collecting benefits. The most important thing is to be completely transparent - report EVERY dollar you earn, even if it's just $20 for a small project. I kept a detailed spreadsheet of all my business activities and earnings to show I was being honest. Also, make sure you can prove you're still actively job searching - I kept screenshots of job applications and emails with potential employers. The NYS DOL really does check this stuff, so don't risk it. Better to have reduced benefits than no benefits at all.
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Charlee Coleman
•This is really helpful advice! The spreadsheet idea is smart - I'll definitely start tracking everything from day one if I decide to move forward with the consulting business. Quick question though - when you say you kept screenshots of job applications, how many job searches were you doing per week to stay compliant? I want to make sure I'm meeting all the requirements while also having time to work on potential consulting projects.
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