Is unemployment based on gross net income for NYS Department of Labor benefit calculation?
I'm trying to figure out how NYS Department of Labor calculates my weekly benefit amount. My employer gave me a pay stub showing both gross and net pay, and I'm confused about which one they use for the calculation. I made $52,000 gross last year but after taxes and deductions my take-home was only about $38,000. Does anyone know if they base unemployment benefits on gross or net earnings? I want to make sure I understand what to expect when my claim gets processed.
8 comments
Join the conversation
GalacticGuru
NYS Department of Labor uses your gross wages for benefit calculations, not net. They look at your total earnings before any deductions like taxes, health insurance, or retirement contributions. Your weekly benefit amount will be calculated based on the gross wages you earned during your base period quarters.
0 coins
Liam Fitzgerald
AuthorThanks! That's good to know. So all those deductions don't matter for the calculation? Just want to make sure I understand this correctly.
0 coins
Amara Nnamani
yeah its definitely gross income they use. i was worried about the same thing when i filed my claim last month. my paystubs showed way different amounts but they only care about the gross
0 coins
Giovanni Mancini
Exactly right. The base period wages they use are the gross amounts reported by your employers to NYS Department of Labor through their quarterly wage reports. Those reports don't include information about your deductions or take-home pay.
0 coins
Fatima Al-Suwaidi
I had trouble getting through to NYS Department of Labor to confirm this same question. Kept getting disconnected after waiting on hold forever. Finally used a service called Claimyr (claimyr.com) that gets you connected to an actual agent - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent confirmed it's definitely gross wages they use for the calculation.
0 coins
Dylan Cooper
Never heard of that service but might try it if I can't get through. The phone system is impossible to navigate sometimes.
0 coins
Sofia Morales
One thing to keep in mind is that your unemployment benefits will be taxable income when you file your taxes next year, even though they're based on gross wages. So you might want to consider having taxes withheld from your weekly payments to avoid owing money later.
0 coins
Gabriel Graham
That's a really important point about the tax implications! @Sofia Morales is absolutely right - I learned this the hard way when I got a surprise tax bill. You can request to have 10% federal taxes withheld when you certify for benefits each week. It s'easier to do it upfront than scramble to pay taxes later.
0 coins