In 1935, a new insurance policy was introduced in the United States. It was dubbed unemployment insurance, and it is designed to provide short-term replacement of wages to individuals who are jobless due to no fault of their own. This means that individuals who were fired for a just cause and deliberately quit their jobs will not be eligible.
Unemployment insurance, also known as unemployment benefits, is precisely a form of social insurance. Employers provide the funds for this insurance through the payment of taxes into the unemployment trust fund.
The basic unemployment insurance program is run by the states, although the U.S. Department of Labor oversees the system. The basic program in most states provides up to 26 weeks of benefits to unemployed workers, replacing about half of their previous wages, on average. States provide most of the funding and pay for the actual benefits provided to workers; the federal government pays only the administrative costs. Although states are subject to a few federal requirements, they can set their own eligibility criteria and benefit levels.
The federal law outlines the guidelines for the unemployment insurance program. However, each state has its unique unemployment insurance program. So in this post, we discuss the New York State unemployment insurance.
New York Unemployment Insurance
The New York Unemployment Insurance (also known as U.I.) is a social insurance policy in New York that offers temporary cash benefits to employees who have lost their jobs. If you have worked in New York State within the last 18 months and lost your job, you may be eligible for U.I. There is a good chance that eligible New York Unemployment Insurance people may get temporarily larger payments during the pandemic.
In New York, the benefit rate of an individual is determined by the recent wages received from a previous employer. Presently, the maximum weekly benefit rate is capped at $504. Interestingly, these benefits are taxable: since New York State and City measures income separately from the federal government, you will still have to pay state and city taxes on your benefits.
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While all unemployment insurance benefits are taxable and considered income for Federal tax returns, you are not required to pay federal taxes on the first $10,200 of unemployment benefits if you earned less than $150,000 as an individual in 2020.
Recently, the federal government launched three new programs related to unemployment insurance compensation and COVID-19: Pandemic Unemployment Assistance (“PUA”); Pandemic Unemployment Compensation (additional $600/week of benefits); and Pandemic Emergency Unemployment Compensation, which would provide claimants who exhaust their regular U.I. benefits with the opportunity to receive up to 13 additional weeks of benefits.
Eligibility for the New York Unemployment Insurance
There are some essential criteria that must be attained to be considered for the New York Unemployment Insurance. You may be eligible for Unemployment Insurance (U.I.), if you:
lost your job through no fault of your own, for instance, if you were laid off by your employer due to economic conditions.
worked within the last 18 months and ready, willing, and able to work immediately
are actively seeking work and keep a record (online or written) of your efforts
you have enough income from your most recent work to establish a claim
are authorized to work in the U.S. and were authorized to work when you lost your job
Those that are eligible for the New York Unemployment Insurance always get their first payment within two to three weeks from the time their claim is filed. In some cases, additional information must be obtained before payment can be made, and it can extend the timeframe allocated for your first payment.
Individuals who work for less than four days a week and earn $504/week or less, may be eligible to receive partial U.I. benefits.
Unfortunately, most self-employed individuals and independent contractors who work in New York State are not eligible for unemployment insurance benefits. But these individuals can be eligible for the PUA. However, self-employed individuals and independent contractors may be eligible for benefits under PUA.
While you are only eligible for unemployment insurance benefits if you are able and available to work, under PUA you can receive benefits if you are the primary caregiver for a child whose school or care facility closed due to COVID-19. The maximum benefit rate is $504, the same as the maximum benefit rate for regular unemployment insurance benefits.
In New York, a law was passed to provide job protection and paid leave for individuals who are subject to an order of quarantine or isolation by a governmental entity because of COVID-19. Workers who are sick or have been mandated to the quarantine may benefit from some additional protections.
Overall, people who deliberately left their jobs will not be eligible for the New York Unemployment Insurance. Therefore, it is advisable to speak with your employer for alternatives that may be available such as using sick time or annual leave, requesting a reasonable accommodation such as working remotely, asking your employer for a leave of absence, or seeking temporary disability benefits. If alternative options are not available, you may file a claim for unemployment insurance. You should consider obtaining medical documentation that identifies any work restrictions and submits that with your claim.
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However, if you are ineligible for unemployment insurance benefits, you may be eligible for benefits under PUA. The PUA comes with extensive benefits for more people, especially during the COVID-19 pandemic period.
Documents for Filing New York Unemployment Insurance Claim
The following documents are required to effectively file your New York Unemployment Insurance claim:
Your Social Security number
Your driver license or Motor Vehicle ID card number (either of the two will do)
Your complete mailing address and zip code
A phone number where DOL can reach you from 8 am–5 pm, Monday–Friday
Your Alien Registration card number (if you are not a U.S. Citizen and have a card)
Names and addresses of all your employers for the last 18 months, including those in other states
Employer Registration number or Federal Employer Identification Number (FEIN) of your most recent employer, listed on your W-2 forms.
How to apply for New York Unemployment Insurance?
Individuals who are looking to apply for the New York Unemployment Insurance can do so online through their website: labor.ny.gov. You can also call the Telephone Claim Center at 888-209-8124. However, due to the increased amount of call volume, it is recommended to those individuals looking to file a claim should visit the website if possible:
To apply online, you should follow the following simple steps:
Log in to unemployment.labor.ny.gov using your NY.gov account.
If you do not have an NY.gov account, you will be able to create one by clicking the “Don’t have an account?” button.
For help with issues related to your NY.gov account, such as difficulty logging in, changing your personal information or resetting your password, you can call the customer support line provided on the website.
After logging in, click “File a Claim” and follow the instructions.
After completing your application, you will need to continue certifying for benefits every week at labor.ny.gov/signin
Sign in and click the “Unemployment Services” button.
Then click the “Certify to Claim Your Weekly Benefits Here” button. Follow all instructions on the next screen.
The Department of Labor will review your claim for U.I. benefits and decide if you qualify.
It is better to file your claim in the first week you worked less than four days and earned a gross income of less than $504. If you worked four or more days or earned more than $504, you should file the following week.
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In a situation where you are unable to file your claim during the week you were separated from your employer due to high call volume and web traffic on the website, you will still receive all the benefits that you are entitled to. Your claim will start on the day you were separated from your employer, and DOL will backdate any claims that are not processed early as a result of the DOL website and unprecedented Unemployment Insurance call center.
Ideally, the first week of a claim is usually an unpaid waiting week. This means that you will not be paid; however, you are required to still claim your weekly benefits and fulfill eligibility requirements. Recently, the governor has suspended the one-week waiting period for individuals who are impacted by the Covid-19 public health crisis. The governor has suspended the one-week waiting period for individuals impacted by the COVID-19 public health crisis. As a result, anyone who is deemed eligible will be will be credited in the first week of your claim. It does not mean that you will be paid as soon as you open your claim.
Conclusion
Since its inception, the New York unemployment insurance has continued to provide a valuable hedge against income losses from temporary unemployment. Economically, it has helped to effectively stabilize the overall economy by improving the purchasing power of workers during periods of economic instability.