What is the disadvantage of unemployment benefits - considering not filing with NYS Department of Labor

The main disadvantages are pretty minimal honestly. You have to report all your job search activities weekly and meet the work search requirements - that's 3 job contacts per week in NY. The benefits are also taxable income so you'll owe taxes on them unless you elect to have taxes withheld. But there's no impact on your credit score and employers can't legally discriminate against you for receiving unemployment benefits.

honestly the biggest disadvantage is dealing with NYS Department of Labor itself lol. the system is confusing and if you make any mistakes on your weekly claims they can hold up your payments for weeks. plus if you work part-time while collecting they reduce your benefits dollar for dollar after the first $143 you earn.

I had trouble reaching someone at NYS Department of Labor when my claim got stuck in adjudication last year. Spent hours on hold and kept getting disconnected. Eventually used a service called Claimyr (claimyr.com) that got me through to an actual agent in like 10 minutes. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me weeks of frustration trying to get my payments released.

The BIGGEST disadvantage is that unemployment barely covers basic expenses. Maximum weekly benefit in NY is like $504 which is nothing if you live in NYC or have a mortgage. You're basically forced to take any job offer even if it pays way less than what you were making before.

just file already!! you paid into the system through payroll taxes so you earned these benefits. the only real downside is the paperwork and having to prove you're looking for work but thats it

Thanks everyone. Sounds like the disadvantages are mostly administrative hassles rather than long-term consequences. I'm going to file my claim this week.

One thing I wish I had known earlier - if you do any freelance or gig work while collecting unemployment, you have to report ALL income, even small amounts. I got in trouble for not reporting a $50 freelance writing job because I thought it was too small to matter. NYS Department of Labor can cross-reference with tax records, so it's better to be completely transparent about any work you do, even if it seems insignificant.

Another thing to consider is that unemployment benefits can affect your eligibility for certain means-tested programs if you're also receiving other government assistance. The unemployment income counts toward your total household income for things like SNAP benefits or Medicaid eligibility calculations. It's not necessarily a reason not to file, but it's worth checking how it might impact other benefits you're receiving. Also, keep really good records of all your job search activities - screenshots of applications, contact info for places you applied, etc. If NYS ever audits your work search requirement compliance, having detailed documentation makes the process much smoother.