NYS Department of Labor - how to pay into unemployment when self employed as freelancer?
I've been doing freelance graphic design for about 2 years now and business has been pretty inconsistent. Some months are great, others are really slow. I keep hearing that self-employed people can't get unemployment benefits, but then someone told me there might be a way to pay into the system voluntarily? I'm in NY and honestly have no idea how this works with NYS Department of Labor. Can freelancers actually pay into UI somehow? I'm worried about having no safety net if clients dry up completely. Has anyone done this or know if it's even possible?
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Liam O'Sullivan
Unfortunately, traditional unemployment insurance in NY is only available to W-2 employees whose employers pay into the system. Self-employed individuals and independent contractors generally aren't eligible for regular UI benefits through NYS Department of Labor. However, there are a few things to consider. First, you might want to look into whether you can restructure your business to pay yourself as an employee (though this gets complicated with taxes and LLC setup). Second, during the pandemic there was PUA for self-employed folks, but that program ended. Your best bet might be building your own emergency fund or looking into private disability insurance.
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Mei Liu
•That's what I was afraid of. So there's really no way to voluntarily pay into the NYS Department of Labor system as a freelancer? I thought maybe there was some option I was missing.
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Amara Chukwu
i think some states let you pay in voluntarily but ny isnt one of them. my cousin is self employed in california and she can do it there but when i looked into it here in ny i couldnt find anything
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Giovanni Conti
•You're thinking of programs like California's voluntary coverage, but you're right that New York doesn't offer this option for self-employed individuals. NYS Department of Labor's unemployment system is funded entirely through employer contributions and employee wages.
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Fatima Al-Hashimi
This is SO frustrating! I've been freelancing for 3 years and the inconsistent income is killing me. I would GLADLY pay into unemployment if they'd let me. It seems crazy that we can't protect ourselves the same way regular employees can. Have you looked into any alternatives? I've been thinking about maybe getting a part-time W-2 job just to have some UI coverage, but then I'd have to juggle that with client work.
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Mei Liu
•Yeah I've thought about the part-time job thing too but it feels like it would complicate my taxes even more. Plus finding something flexible enough to work around client deadlines seems impossible.
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Giovanni Conti
The reality is that New York's unemployment system wasn't designed with the gig economy in mind. While you can't voluntarily pay into NYS Department of Labor's UI system, you do have some other options. Consider setting up a separate savings account and automatically transferring a percentage of each payment (maybe 5-10%) as your own 'unemployment fund.' You could also look into professional liability insurance that includes some income protection coverage. Some freelancer unions or professional organizations offer group insurance plans that might include short-term disability benefits.
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NeonNova
•I actually tried calling NYS Department of Labor about this exact thing last month and spent hours on hold before giving up. The whole system is impossible to navigate when you have questions that don't fit their standard employee/employer model. I ended up using claimyr.com to get through to an actual agent who confirmed there's no voluntary program for self-employed folks in NY. The video demo on their site (https://youtu.be/qyftW-mnTNI) shows exactly how it works - way easier than trying to call directly.
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Dylan Campbell
Just wanted to jump in and say I feel your pain. Been freelancing for 5 years and the feast or famine cycle is real. I've basically had to become my own insurance company at this point.
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Kelsey Hawkins
Have you considered looking into the Freelancers Union? While they can't get you into the NYS Department of Labor unemployment system, they do offer some benefits and resources specifically for independent contractors. They have health insurance options and sometimes advocate for policy changes that could help freelancers in the future. Also, if you're doing graphic design, you might want to check if there are any creative industry organizations that offer emergency grants or short-term financial assistance during slow periods. It's not the same as UI, but it's something. The lack of a safety net is definitely one of the biggest downsides to freelancing in NY.
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