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Zara Rashid

NYS Department of Labor unemployment payment reduced without explanation - why did my unemployment go down?

My weekly unemployment benefit was $372 for the past 6 weeks and this week it dropped to $298 with no warning or explanation. I haven't started any part-time work or reported any income changes. When I log into my.ny.gov account it just shows the reduced amount but doesn't explain why. I tried calling the NYS Department of Labor but got disconnected after waiting 45 minutes. Has anyone experienced their unemployment going down like this? What could cause this sudden reduction?

Luca Romano

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There are several reasons your NYS Department of Labor benefit could decrease. The most common is if you reported any earnings from work, even small amounts get deducted dollar-for-dollar from your weekly benefit. Another possibility is if there was an overpayment determination that they're now recovering by reducing future payments. Check your claim history on my.ny.gov for any notices about overpayments or earnings adjustments.

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Zara Rashid

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I checked my claim history and there's nothing about overpayments. I definitely haven't worked at all since I filed my initial claim. Could it be related to my job search requirements somehow?

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Nia Jackson

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same thing happened to me last year, turned out they recalculated my base period wages and found an error that reduced my weekly benefit rate. never got any notice about it either, just showed up as a lower payment

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Zara Rashid

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How did you find out that's what happened? Did you have to call them or was there documentation somewhere?

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Nia Jackson

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had to call and speak to someone at NYS Department of Labor, they explained they had wrong wage info from one of my previous employers and the correction lowered my benefit calculation

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If you can't get through to NYS Department of Labor by phone, you might want to try Claimyr. I used their service at claimyr.com when I was having issues reaching an agent about my claim status. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. It helped me get connected to speak with someone about my benefit calculation issues without spending hours on hold.

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CosmicCruiser

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Is that legit? I've been trying to reach NYS Department of Labor for weeks about my own issues and keep getting disconnected.

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Yeah it worked for me. You still talk to actual NYS Department of Labor agents, it just helps you get through their phone system faster. Worth checking out if you're stuck like I was.

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Aisha Khan

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THE NYS DEPARTMENT OF LABOR SYSTEM IS SO BROKEN! They reduce benefits without notice, never answer phones, and expect us to figure everything out ourselves. I've been dealing with issues for MONTHS and still no resolution. This is people's livelihoods they're messing with!

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Ethan Taylor

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I feel your frustration but getting angry won't help solve the specific issue. OP needs to find out what caused the reduction first.

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Yuki Ito

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Check if you hit the 26-week limit or if there was a holiday that affected the payment schedule. Sometimes benefit reductions happen when you're transitioning between different phases of your claim.

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Zara Rashid

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I'm only on week 8 of my claim so I haven't hit any limits. The payment came on the normal day, just a lower amount.

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Have you checked if there were any tax withholdings that started being deducted? Sometimes NYS Department of Labor will begin withholding federal or state taxes from your benefits if you initially opted out but then they automatically enrolled you, or if there was a change in your tax election. You can check your payment history details on my.ny.gov to see if there's a breakdown showing taxes being withheld. The difference between $372 and $298 is $74, which could be about 20% tax withholding. Also look for any notices in your correspondence section that might explain the change.

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Kayla Morgan

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That's a really good point about tax withholdings! I hadn't thought of that. When I first filed my claim I think I chose not to have taxes withheld, but maybe they changed that automatically? I'll check my payment breakdown on my.ny.gov to see if there's suddenly tax withholding showing up. That would definitely explain the $74 difference. Thanks for the suggestion!

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Amina Diallo

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I had a similar issue where my NYS Department of Labor benefits suddenly dropped by about $70. It turned out they had automatically enrolled me in federal tax withholding even though I had originally opted out. Check your payment details on my.ny.gov - look for a line item showing "Federal Tax" or "State Tax" being deducted. If that's what happened, you can change your tax withholding preferences by logging into your account and updating your payment options. The $74 difference between your old and new payment amount is roughly what you'd expect from 20% tax withholding. Also check your inbox on the unemployment portal for any notices about tax election changes - sometimes they send notifications there instead of mailing them.

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This makes a lot of sense! I'm going to check my payment details right now to see if there's suddenly tax withholding showing up. The $74 reduction does match what 20% withholding would be on my original $372 benefit. I really hope this is just a tax withholding issue and not something more complicated with my claim calculation. Has anyone else had NYS Department of Labor automatically change their tax elections without clear notice?

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