How does NYS Department of Labor find out if you're working while collecting unemployment?
I'm really confused about what happens if someone works while collecting unemployment benefits. How exactly does the NYS Department of Labor find out if you're working? Do they cross-reference with tax records or something? I'm asking because I might have a chance to do some part-time work but I want to make sure I report everything correctly. I don't want to get in trouble for an overpayment later. What information do they actually have access to?
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Max Knight
The NYS Department of Labor has access to multiple databases to verify employment. They cross-reference your Social Security number with quarterly wage reports that all employers must file (called UI-3 forms). They also get data from the State Directory of New Hires, which employers must report within 20 days of hiring someone. If you work and don't report it on your weekly claim, they will eventually find out and you'll face an overpayment demand plus penalties.
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Madeline Blaze
•So they can see everything basically? What if it's just cash work or something really small?
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Emma Swift
Yeah they have ways to find out. I learned this the hard way - got caught working a few days and not reporting it properly. They sent me an overpayment notice for like $2,100 six months later. Even if you work just one day you have to report it on your weekly claim. The system will automatically calculate how much to deduct from your benefits based on what you earned.
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Isabella Tucker
•Did you have to pay that back right away or did they set up a payment plan?
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Emma Swift
•They gave me options - I could pay it back all at once or they would deduct it from future benefits. I chose to have them take it out of my remaining weeks since I was still collecting.
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Jayden Hill
If you're struggling to get through to NYS Department of Labor to ask about reporting work, I had good luck with claimyr.com. They helped me get connected to an actual agent to clarify my questions about partial benefits when I was working reduced hours. There's a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Way easier than trying to call and getting hung up on constantly.
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Madeline Blaze
•Never heard of that service before. Does it actually work or is it just another scam?
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Jayden Hill
•It's legit - they basically handle the calling and waiting for you. I was skeptical too but it saved me hours of frustration trying to get through the phone lines.
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LordCommander
DON'T RISK IT!! I know someone who thought they could hide a small cash job and ended up owing back everything plus interest. The state has computers that match everything up automatically now. Just report any work honestly on your weekly claim and let them calculate the deduction. Better safe than sorry.
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Lucy Lam
•This is exactly right. The penalties for fraud are no joke - they can make you pay back 3x the amount you weren't supposed to get.
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Aidan Hudson
They also check with the IRS and state tax records. Plus if you file taxes next year and report income during a period when you claimed you weren't working, that's gonna raise red flags. The databases all talk to each other now so there's really no way to hide employment anymore.
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Madeline Blaze
Thanks everyone for the warnings. Sounds like I definitely need to report everything properly. Better to get reduced benefits than get hit with a huge overpayment later.
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