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Paying Employees in NY
When hiring employees in new states, you need to register for relevant state tax accounts to facilitate their payment. In New York, you must register as an employer with both the New York Department of Taxation and Finance and the New York State Department of Labor. Please provide us with your New York Employer Registration Number and your Unemployment Insurance (UI) Tax Rate.
Justworks Payroll can also handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your NY Accounts and Rate Info
New York requires you to register online; online registration enrolls your business with the New York Department of Labor and the New York Department of Taxation and Finance simultaneously. You’ll want to enter your New York Employer Registration Number, New York Employer Withholding Identification Number and Unemployment Rate into Justworks Payroll.
Find This Information
Your New York Employer Registration Number and Tax Rate:
- Find your Employer Registration Number on any previously filed quarterly tax return (Form NYS-45).
- Your UI contribution rate appears on Form IA 97 "Notice of Unemployment Insurance Rate" that you receive from the New York Department of Labor each year.
- Call the NY Department of Labor at 888-899-8810.
Your New York Employer Withholding Identification Number:
- Find this on any previously filed quarterly tax return (Form NYS-45).
- Locate any of your previously filed federal tax returns (as this number matches your FEIN).
- If you're unable to find your account number or tax rates, contact the agency directly at 518-485-6654.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid NY address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- "Under 'Compliance' click into 'Company Taxes' and select the state you want to edit"
After entering your company’s NY state tax account details, you will need to complete a few more questions to ensure your NY state taxes are recorded as accurately as possible.
These questions are:
- How are you funding state disability insurance?
- Would you like to cover the Paid Family Leave Insurance on behalf of your employees?
- Does the Metropolitan Commuter Transportation Mobility Tax apply to your business?
- Have you been approved by the state of New York for the START-UP New York program?
Below, you’ll find more information about how to fill out these fields.
NY State Disability Insurance and Paid Family Leave Insurance
Most employers in New York State are required to provide Disability and Paid Family Leave (PFL) coverage once they have had at least one employee working in NY for 30 or more days within the year. Please note that these 30 days do not need to be consecutive.
Employers can provide state disability insurance through a state-authorized private insurance carrier, the state-funded New York State Insurance Fund (NYSIF), or by becoming self-insured. Employers can choose to fully cover disability insurance premiums for their employees, or withhold wages to offset the cost, up to a maximum of $0.60 per employee per week.
New York PFL is typically included as a rider on a company’s Disability coverage. Justworks partners with NEXT to provide fully integrated workers’ compensation coverage, which can also cover NY Disability and PFL requirements. Follow these steps to set up a policy with NEXT through your Justworks account.
Once your coverage is in place, you will need to indicate whether your company or your employees will be covering the cost of premiums so that any withholdings and/or contributions are recorded correctly.
Metropolitan Commuter Transportation Tax
Your business may be liable for the Metropolitan Commuter Transportation Mobility Tax (MCTMT) if you operate within the Metropolitan Commuter Transportation District (MCTD). You can learn more about the MCTMT and determine whether you are subject to this tax on the New York Department of Taxation and Finance’s webpage.
START-UP New York
The START-UP New York program is a government initiative to provide tax-based incentives and academic partnerships to eligible businesses. Reviewing these state guidelines will help you determine whether your business is eligible for the program.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your NY tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your NY state tax account. During onboarding, we will request that you sign Form TR-2000, which authorizes us to handle and report your taxes to NY state. In addition to signing and returning Form TR-2000, you will need to follow the instructions below to grant us access:
- Log into https://www.tax.ny.gov/online/
- Select 'Tax professional summary' from the left-hand Services menu
- Search for us by name or taxpayer ID number, then select Add.
- Taxpayer ID: 86-3394235
- Name: NEON MOOSE LLC
- Select the services you are authorizing us to perform on your behalf:
- Payments, bills, and notices
- Employment and withholding taxes
- Other taxes
- Registrations and account updates
- Annual transaction information
- Respond to department notice
- File exchange
- Select Save and continue
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.