Unemployment insurance for a sole-proprietor business owner in New York?

December 29, 2009 10:56 AM

Unemployment insurance for a sole-proprietor business owner in New York?

So, as a sole-proprietor in NY, I am not an employee and thus would not be paying unemployment taxes on myself.

But what happens if my start-up business tanks?

Can I still choose to pay into the unemployment tax fund for myself as a sole- proprietor business owner? Is there private unemployment insurance available to cover this possibility?

Thanks.

posted by franklen to Work & Money (1 answer total)

Best answer: According to the New York DOL website, individual proprietors are excluded from paying unemployment taxes and may not voluntarily choose to participate in the program. It's one of the risks you bear yourself for being self-employed.

I know of no private carriers that offer unemployment insurance. Like all speculative risks, i.e. risks where there is a possibility of gain and a possibility of loss, being self-employed is generally considered an uninsurable exposure by the private market.
posted by valkyryn at 11:29 AM on December 29, 2009 [1 favorite]