Unemployment Claims With a Rental Income in New York
Dealing with the emotional blow and the sudden change in household finances can be difficult enough after a job loss. Combine the complexities of applying for unemployment insurance benefits and sorting through the layers of New York unemployment law, and determining eligibility can be difficult, particularly for landlords who report rental income. The New York Department of Labor weighs each application for benefits individually, although unemployed workers who receive rental income may not qualify for benefits at all.
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Total Unemployment
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New York Labor Law section 591.1 requires a worker to be totally unemployed to qualify for state unemployment insurance benefits. Although the New York Supreme Court ruled that the Department of Labor’s policies ultimately determine standards of total unemployment on an individual basis, a 2006 ruling declared that a beneficiary who received rental income in addition to his full-time wages wasn’t entitled to unemployment benefits because, as a result of his activities as a landlord, he wasn’t totally unemployed. The defendant in the case reported $3,800 monthly in rental income, with a personal rent of just above $1,000.
Reporting Rental Income
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Workers who apply for unemployment benefits must declare their rental income when they make their initial claim, as the Department of Labor considers this revenue when determining eligibility and benefit amounts. As landlords report this income to the Internal Revenue Service each year, this income is on record, and, in the chance of a labor department audit, may be referenced. Claimants who fail to report rental income and receive benefits may be required to reimburse the department for the amount they received if it’s determined that they don’t qualify for benefits.
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Rental Income Vs. Part-Time Income
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Small amounts of rental income may not disqualify an applicant from receiving unemployment insurance benefits entirely, as New York unemployment law allows claimants leeway in its consideration of “total unemployment,” when they work part-time jobs. Any worker who earns more than $405 weekly in part-time wages is ineligible for benefits. The department reduces the weekly benefit of those who earn less by 25 percent per day they work, so a beneficiary who works two days per week receives 50 percent of her full benefit, while one who works three days each week receives 25 percent of her full benefit.
Appealing Determinations
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If a claimant disagrees with the New York Department of Labor’s ruling that he’s ineligible for benefits because of his rental income, he has the right to appeal the ruling. A claimant may present his case to an administrative law judge to appeal the decision. An applicant has 30 days to appeal a determination and must notify the department in writing at: NYS Dept. of Labor, PO Box 15131 Albany, NY 12212-5131.
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