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Who to contact about NY unemployment tax withholding issue on my check

I just got my NY unemployment payment and noticed they're taking out taxes when I don't think they should be. I'm pretty sure I selected 'no withholding' when I filed my claim back in January, but now I'm getting less money than I expected each week. Is there a specific department or phone number I need to call to fix this? Do I need to submit some kind of form to change my tax withholding status? Has anyone dealt with this before? I really need the full amount right now.

Paolo Ricci

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You need to call the NYS DOL and ask them to change your tax withholding preference. They automatically withhold 10% federal tax unless you specifically opt out. Call the main unemployment number at 888-209-8124, but be prepared for a long wait. You might also be able to change this in your online account under 'Payment Options' or 'Tax Withholding Preferences' depending on your account settings.

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Thanks for the info. I've been trying that number for 2 days and can't get through! It either disconnects me or puts me on hold forever. Are there specific hours when it's easier to reach someone?

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Amina Toure

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just check ur online account first!! u can probably change it urself without calling. go to ur dashboard and look for withholding options

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I tried looking there but couldn't find that option anywhere. The website is so confusing! I'll check again though, maybe I missed it.

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I had this EXACT same problem last month!! The system defaulted back to withholding taxes after a system update even though I had selected no withholding when I first applied. The worst part is they WON'T refund the taxes they already took - you have to wait until you file your taxes next year to get that money back. So frustrating!!

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Ugh, that's terrible! Did you manage to get it fixed for future payments at least? I really can't afford to lose that extra money right now.

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Yes, I finally got it fixed but only after FOUR calls to them. Each time they'd tell me something different. One rep told me to mail in a form (which doesn't exist), another told me to wait for the system to update (it never did), and finally I got someone who actually knew what they were doing and fixed it right away. The system is a mess!

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After trying for days to reach someone at NY unemployment about my tax withholding issue (same problem as you), I finally used Claimyr to get through to an agent. It's a service that basically holds your place in line and calls you when an agent is available. Saved me hours of frustration. You can see how it works at claimyr.com or check their demo video at https://youtu.be/Rdqa1gKtxuE The agent I spoke with said a lot of people are having the same issue right now. Apparently there was a system update in February 2025 that reset some accounts to default settings. The agent was able to change my preference immediately and told me it would take effect on my next payment.

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Amina Toure

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does that service actually work? seems weird to use a 3rd party just to talk to unemployment

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Thanks for the suggestion! I might try that if I can't get through tomorrow. Did you have to provide any documentation when you finally reached them, or did they just change it in the system for you?

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i had a similar probz with my checks last year. what worked 4 me was sending a message thru the contact portal on the DOL website. went to Contact Us > Payment Issues > Tax Withholding. took like 10 days but they fixed it without me calling. worth a try if u hate phone calls like me lol

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That's a great idea, I'll definitely try that too. 10 days is a long wait though...

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Javier Torres

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The tax withholding issue is frustrating but actually quite common. Here's what you need to know: 1. Federal withholding is 10% if selected 2. You can change your preference at any time 3. Changes only affect FUTURE payments 4. Previously withheld taxes cannot be returned directly from NYSDOL To fix this, you have two options: 1. Call 888-209-8124 and speak to a claims specialist (not a general representative) 2. Send a secure message through your online account specifically requesting "tax withholding preference change" Make sure you're very specific that you want to change from "withholding" to "no withholding" for federal taxes. Some representatives may not understand what you're asking if you're vague. And yes, unfortunately, for any taxes already withheld, you'll need to claim those when you file your 2025 tax return next year.

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Thank you for the detailed explanation! This is really helpful. I'll make sure to be very specific when I talk to them.

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Emma Davis

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My sister works for the unemployment office (not in NY tho) and she says they've been getting SO many calls about this exact problem lately! Apparently there was some kind of big system update that reset a bunch of people's preferences. She said they're totally overwhelmed with calls right now because of tax season AND this glitch.

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Javier Torres

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This is accurate. NY DOL implemented a system update in February 2025 that did cause some accounts to revert to default settings. They haven't publicly acknowledged the issue, but their internal teams are aware and working on it. In the meantime, each affected claimant needs to contact them individually to have their preferences reset.

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UPDATE: I finally got through to someone! I ended up using that Claimyr service that someone mentioned, and it worked great. Got a call back with an agent on the line within an hour. The agent confirmed there was a system update that reset my tax withholding preferences. They fixed it right away and said my next payment will have the correct amount without taxes taken out. Unfortunately, I can't get back the taxes they already took out, but at least it's fixed going forward. Thanks everyone for your help!

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Paolo Ricci

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Great to hear you got it resolved! Just as a heads-up for anyone else reading this - make sure to double-check your next payment to confirm the change actually went through. Sometimes it takes two payment cycles for the changes to fully process in their system.

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awesome! glad u got it fixed!

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