NYS Department of Labor unemployment insurance - who is exempt from unemployment insurance coverage?

There are several categories of workers and employers that are exempt from NY unemployment insurance coverage. Small employers with fewer than 4 employees in a calendar quarter are generally exempt, unless they paid wages of $300+ in any quarter. Also exempt are: independent contractors, certain agricultural workers, domestic workers earning less than $500 per quarter from one employer, students working for their school, and most religious organization employees. Family businesses where you work for a spouse, parent, or child under 18 are also typically exempt.

you should still try filing a claim even if you think your employer might be exempt! NYS Department of Labor will investigate and determine if your employer should have been paying unemployment insurance. sometimes small employers don't realize they're required to pay in once they hit certain thresholds. worst case they say no but you might be surprised

I had issues reaching someone at NYS Department of Labor to get clarity on my employer's status. The phone lines are always busy and I kept getting disconnected. Finally found this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Made the whole process way less frustrating than trying to call myself.

The whole exempt employer thing is confusing. I worked for a church and they told me religious organizations don't pay unemployment but then I found out some do?? Makes no sense

Just wanted to add that even if your employer was exempt, you might still have other options. If you had a previous job within the last 18 months where the employer DID pay into unemployment insurance, you could potentially qualify based on that work history. NYS Department of Labor looks at your entire base period (usually the first 4 of the last 5 completed quarters) when determining eligibility. So don't give up - definitely file that claim and let them sort out the details!

I went through a similar situation last year! My employer kept insisting they were too small to pay unemployment taxes, but when I filed anyway, NYS Department of Labor discovered they had actually crossed the threshold and owed contributions. The key thing to remember is that the $300 wage threshold and 4+ employee rules can change throughout the year - so an employer who starts exempt might become liable partway through. Don't let your employer's assumptions stop you from filing. The worst that happens is they confirm you're not eligible, but you might be pleasantly surprised when the state does their own investigation.

I want to emphasize something important that others have touched on - don't rely solely on what your employer tells you about their exemption status. Many small business owners aren't fully aware of the nuances in NY unemployment insurance law. For example, if they had 4+ employees for even one quarter during the year, or if they paid $300+ in wages in any quarter, they likely should have been contributing. Also, if the business has multiple locations or related entities, that can affect their total employee count. The NYS Department of Labor has access to payroll records and tax filings that will give them the full picture. I'd definitely recommend filing your claim - the department will do a proper investigation and determine the facts. Even if this employer was truly exempt, as others mentioned, your work history from other jobs might still qualify you for benefits.