Is unemployment a social security benefit - confused about NYS Department of Labor vs SSA
I'm really confused about something and hoping someone can clear this up for me. I've been collecting unemployment benefits through NYS Department of Labor for about 8 weeks now after getting laid off from my warehouse job. My neighbor keeps telling me that unemployment is part of social security and that it might affect my future social security benefits when I retire. Is this true? I thought unemployment insurance was completely separate from social security. I'm worried because I'm 58 and was planning to work until 67, but now I'm scared that collecting UI might mess up my retirement plans. Does anyone know if NYS Department of Labor unemployment benefits count as social security benefits or are they totally different programs?
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Oliver Zimmermann
No, unemployment insurance is NOT a social security benefit. These are completely separate programs with different funding sources. NYS Department of Labor unemployment benefits are funded through employer payroll taxes, while Social Security is funded through FICA taxes that come out of your paychecks. Collecting unemployment will not affect your future Social Security benefits at all. Your neighbor is mixing up two different safety net programs.
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Amina Toure
•Thank you so much! That's such a relief. I was really worried about this affecting my retirement.
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Natasha Volkova
yeah theyre totally different things, unemployment is state level and social security is federal. i collected unemployment for like 6 months a few years back and it didnt affect anything with my social security statement or anything
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Javier Torres
Your neighbor might be thinking about disability benefits, which ARE part of Social Security. But regular unemployment insurance through NYS Department of Labor is administered by the state and has nothing to do with SSA. The only thing they have in common is they're both government benefit programs. Think of it this way - unemployment replaces lost wages temporarily, Social Security replaces wages permanently when you retire or become disabled.
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Emma Davis
•Wait, so if I'm getting unemployment now, do I still pay into social security when I find my next job? I'm confused about how this all works together.
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Javier Torres
•Yes, when you get your next job you'll pay FICA taxes again which go toward Social Security. Unemployment benefits themselves don't count as earnings for Social Security purposes, but they also don't hurt your record.
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CosmicCaptain
I had this same confusion when I first filed for unemployment! The paperwork and systems are so different too. NYS Department of Labor has you file weekly claims and do job searches, while Social Security is totally different processes. If you're having trouble reaching NYS Department of Labor to get more clarification about your benefits, I found this service called Claimyr (claimyr.com) that helps you get through to actual agents. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped me when I had questions about my claim status.
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Malik Johnson
•Never heard of that service but interesting idea. Sometimes it's impossible to get through to NYS Department of Labor on the phone.
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Isabella Ferreira
Honestly the whole system is confusing and they don't explain anything clearly. I've been dealing with NYS Department of Labor for months and half the time I don't understand what they're asking for. But no, unemployment is definitely not social security - completely different bureaucracies making your life difficult in different ways!
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Malik Johnson
Just to add - your unemployment benefits might be taxable income for federal taxes, but that's different from affecting Social Security. Make sure you're setting aside money for taxes if you're not having them withheld from your NYS Department of Labor payments.
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Amina Toure
•Good point about taxes, I didn't think about that. I should probably have them withhold something.
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