NYS Department of Labor unemployment eligibility for business owners - how does this work?
I've been running a small consulting business for the past 2 years but things have really slowed down and I'm barely making enough to cover expenses. A friend mentioned that business owners might be able to get unemployment in some situations but I'm confused about how this works with NYS Department of Labor. I do have some 1099 income but it's sporadic. Does anyone know if self-employed people can qualify for regular unemployment benefits? I'm worried I might not have paid into the system correctly.
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Isabella Santos
Unfortunately, traditional unemployment benefits through NYS Department of Labor are only available to W-2 employees who had wages withheld for unemployment insurance. As a business owner with 1099 income, you typically wouldn't qualify for regular UI benefits unless you also had W-2 employment recently. However, you might want to check if you elected to pay into the unemployment system as a self-employed person - some business owners do this voluntarily.
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Malik Davis
•I don't think I ever elected to pay into unemployment as self-employed. Is there any other assistance available for business owners who are struggling?
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Ravi Gupta
there used to be pandemic programs for self employed but those ended in 2021. now its back to regular rules - you need w2 wages to qualify for nys unemployment. if you had any part time w2 jobs in the last 18 months you might still be eligible based on those wages even if your main income was 1099
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GalacticGuru
•This is correct. I had a similar situation where I was mostly freelancing but had a part-time W-2 job at a retail store. I was able to get unemployment based on those W-2 wages when the store closed.
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Freya Pedersen
Wait I'm confused about this too! I thought if you pay taxes you should be able to get unemployment? This seems really unfair that business owners who contribute to the economy can't get help when times are tough. The whole system seems backwards.
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Isabella Santos
•I understand the frustration, but unemployment insurance is funded by employer payroll taxes on W-2 wages. Self-employment taxes go toward Social Security and Medicare, not unemployment insurance. It's a different system entirely.
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Freya Pedersen
•That makes more sense I guess but still seems unfair. Thanks for explaining it.
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Omar Fawaz
If you're having trouble getting through to NYS Department of Labor to verify your eligibility or ask about your work history, I had success using a service called Claimyr (claimyr.com) that helped me reach an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. It was really helpful when I couldn't get through the regular phone lines to check on some W-2 wages I had from a few years back.
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Malik Davis
•Thanks, I might need to try that. I want to make sure I'm not missing any W-2 wages that might make me eligible.
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Chloe Anderson
Just wanted to add that even if you can't get unemployment, you should look into other programs. There might be small business assistance or other safety net programs available. Don't give up!
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Marcus Williams
•@Chloe Anderson is right about looking into other programs. Also @Malik Davis, you might want to check with your local Small Business Development Center SBDC (-) they often have resources or can point you toward emergency assistance programs for struggling business owners. Some counties in NY have their own small business relief funds too.
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CosmicCrusader
Another option to consider is applying for SNAP (food assistance) or other emergency aid programs while you figure out your business situation. These programs don't have the same employment requirements as unemployment insurance. You can apply online through ACCESS HRA or myBenefits.ny.gov. Also, some local food banks and community organizations offer emergency financial assistance for small business owners - it's worth calling 211 to see what resources are available in your area.
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