New York New Employer Information
Congratulations on your decision to become a new employer in New York! You will need a few things in place before you run your first payroll:
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online. You can use this account to view any tax deposits made on your behalf by Patriot Software or to make tax payments yourself online.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of New York Tax Accounts:
- New York new employers can use one online registration via the Department of Labor for both state income tax account (SIT) and state unemployment insurance (SUI).
- If you have any questions, you can call New York at (888) 899-8810.
- When reporting taxes to NY State, you can report by using Web File for Form NYS-1, Return of Tax Withheld, and Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, through the Online Services. You must create an Online Services account before you can Web File or have Patriot Web File on your behalf. Electronic filing of taxes is mandatory.
- Note that New York will use your FEIN as for your state income tax identification number. This is entered in our software as nine digits with no dash.
- The New York Department new employer SUTA rate is 4.025% for 2021. For your information, all employers are also required to pay a 0.075% Re-employment Services Fund (RSF). The RSF rate is automatically calculated in Patriot Software. Do not add the Re-employment Services Fund rate to your SUTA rate. To learn more visit the NY DOL.
- The New York Department of Labor will assign your business an unemployment tax (SUTA) rate every year. This is based on your type of business and activity.
- For more information, read, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Form IT-2104 form is the Employee Withholding Allowance Certificate for New York, New York City, and Yonkers. This is required for state income taxes (SIT).
- New York’s minimum wage exceeds the federal minimum wage, so you must comply with the greater wage. New York’s minimum wage is $12.50 per hour for 2021.
- Some localities in New York State have more stringent minimum wage laws with higher rates. You must follow these more stringent laws.
- You need to display the New York minimum wage poster where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You need to keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list. Please contact the federal and state government websites for more information.