New York New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- The Employer Identification Number (EIN), is a unique nine-digit number assigned by the IRS to identify your business.
- Register for an EIN if you do not already have one.
- The simplest (and preferred) way to apply for an EIN is online with the IRS. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
- 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 3.4% for 2022. 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?”
- New York requires most employers to have Disability Insurance. For more information, visit the New York Workers’ Compensation Board.
- You can sign up for your State Disability Insurance online with the NYSIF.
Setting Up Your New Employee:
- Have your employees fill out the required Form I-9. As the employer, you will fill out the second part of the form. To learn more about Form I-9, read, “Form I-9 In a Nutshell.”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Form W-4, Employee’s Withholding Certificate is used for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- 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 $13.20 per hour for 2022.
- 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.