Employer Contribution Rate Table Department of Labor

If the employee/payee did not have any gross wages covered by UI, or if the employee is not covered by UI in New York State in the quarter you are reporting, the UI remuneration paid this quarter field should be zero-filled. However, if the employee/payee had gross federal wages or distribution subject to withholding, and New York State, New York City, and Yonkers tax withheld in that quarter, you are required to report those amounts for each employee/payee paid during the quarter. New York State no longer requires the annual filing of Form 1099 information returns. However, New York State does require the reporting of Form 1099-R payments if there was New York State, New York City, or Yonkers income tax withheld (see Annuities subject to income tax withholding). Out-of-state employers who are not incorporated or licensed under New York State law and do not maintain an office or transact business in New York State are not required to withhold New York State, New York City, or Yonkers income taxes on the wages of employees who reside in New York State. However, if an out-of-state employer agrees to withhold New York State, New York City, or Yonkers income taxes for the convenience of the employee(s), the employer is then subject to New York State withholding requirements as outlined in this publication.

C. New York State employer’s identification number

Upon registration, employers (except household employers) will receive a poster, Notice to Employees, IA 133, which informs their workers that their jobs are protected by UI. Additional copies may be obtained by contacting the nearest Unemployment Insurance Employer Services Office or the Department of Labor, Registration Subsection (see Unemployment insurance issues – Where can I find the answers?). (1) pay wages of $1,500 or more during any calendar quarter in that year or the preceding year; or (2) employ at least one person on at least one day in each of 20 different weeks during the calendar year or the preceding calendar year.

• The employee must file a New York State personal income tax return to receive a refund of withholding tax.
• Upload submissions that cannot be processed constitute a failure to file that may result in penalties.
• If employees are retained during a temporary slowdown, employers can quickly gear up when business conditions improve.
• The state share ranges from 5% to 25% and could add as much as $1.9 billion a year to New York’s budget.
• This penalty cannot exceed 25% (0.25) of the tax paid late unless the return is more than 60 days late, in which case the penalty will not be less than the lesser of $100 or 100% of the amount required to be shown as tax on the return.

Electronic Reporting of Form NYS-45 Information

Liable (1) as of the first day of the calendar quarter in which the employer pays remuneration totaling $300 or more; or (2) as of the day the employer purchases the business of, or otherwise becomes successor to, a liable employer. Household employers – Household employers are those who employ persons in personal or domestic service in their home or homes within New York State. The Householder’s Guide for Unemployment Insurance, IA 318D, is available upon request from the Department of Labor, Registration Subsection (see Unemployment insurance issues – Where can I find the answers?). In addition, any overpayment claimed on a return that was required to be electronically filed will not be eligible to receive interest until the document is filed electronically. We’ve updated our website, publications, and other content to reflect these changes. Accounts Payable Management For an overview of what’s different, see March 2025 changes to withholding tax and wage reporting.

Penalties

Once your new rate is entered into the payroll system, your prior processed payrolls for the new year will be re-calculated to determine your correct contributions due. An employer’s New York State Unemployment Insurance contribution rate is divided into two parts – the normal, and the subsidiary, contribution. For the first time in its 60-year history, the public health program that serves 7 million New Yorkers will come with a work requirement. Medicaid recipients who aren’t disabled will now have to file regular reports to show they’re working at least 80 hours a month, or else their coverage will be revoked. Find copies of current unemployment, withholding, IRS, ADP and other forms using this extensive repository of tax and compliance-related forms and materials.

D. Rights and responsibilities of a liable employer

However, most businesses are required to pay FUTA and SUTA taxes if they run payroll. Certain companies such as religious organizations, educational institutions, and other non-profits may apply for “Reimburser” status, meaning they pay no contributions up front and instead must reimburse the state after the fact for any unemployment claims made against them. In addition, all companies are subject to a Re-employment Services Fund assessment of 0.075% on the wage base, for up to an additional $9 per employee. The New York State Department of Labor has set 2025 Unemployment Contributions Rates, as well as the taxable wage base for 2025.

A newly hired or rehired employee means an employee previously not employed by the employer, or previously employed by the employer but separated from such prior employment for 60 or more consecutive days. In addition, claimants will be subject to a penalty of 15% (0.15) or $100, whichever is greater, if they fraudulently collect benefits. A person who willfully fails to pay over any withholding tax will also be prosecuted under the Penal Law, possibly for a felony. Any overcollections not repaid to the employee within the same calendar year must be reported and paid to the Tax Department with Forms NYS-1, Form NYS-45, or both. A seasonal employer must file at least one quarterly return for each calendar year to maintain seasonal status. Ask the employee or payee to inform you of the number and name as they are shown on the Social Security card when it is received.

For example, for taxable years 2012 and 2013, the Virgin Islands had a 2.7% “add-on” when its tax rate on total wages was below retained earnings a national minimum. For taxable year 2014, Connecticut had a “BCR add-on” when its tax rate on the taxable portion of covered wages in the previous calendar year was less than the 5-year benefit–cost ratio applicable for the taxable year. If a New York State nonresident employee performs services partly in the state, only wages for services inside the state are subject to withholding of New York State personal income tax. In accordance with the UI Law, a special re‑employment service fund has been established to assist UI claimants in finding work.

• Interaction of late filing and late payment penalties – The late filing penalty will be reduced by ½% (0.005) (to 4½% 0.045) for each month in which both the late filing and late payment penalties are imposed.
• New York State personal income tax does not conform to the federal changes to QIP depreciation.
• If the employee reasonably expects that the preceding year’s experience will not apply to the current year, the employee may furnish you with a statement on Form IT-2104.1, estimating the part of wages allocable to New York State, or you may make such an estimate and withhold on that basis.
• However, if a single employer’s amount due is over the limit, only one submission should be made.
• File must be created in a text-based application using ANSI encoding.Caution!
• One option is to request a 10% federal withholding by submitting Form W-4V to the New York State Department of Labor.

If you already filed your 2020 New York State return, and you did not add back unemployment compensation that was excluded from your federal gross income, then you must file an amended return with New York State. If you did not exclude unemployment nyc tax rate compensation from your federal gross income, do not file an amended return with New York State. Your effective tax rate is the percentage of your taxable income that you pay in taxes.

New York: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2021

The reduction schedule is 0.3% for the first year the state is a credit reduction state, another 0.3% for the second year, and an additional 0.3% for each year thereafter that the state has not repaid its loan in full. Additional offset credit reductions may apply to a state beginning with the third and fifth taxable years if a loan balance is still outstanding and certain criteria are not met. Some states take Federal Unemployment Trust Fund loans from the federal government if they lack the funds to pay UI benefits for residents of their states. However, for FUTA Credit Reduction States in 2025 (California, specifically), the normal credit of 5.4% is reduced by 0.6%, leaving the credit reduction for them at 4.8%. Take the 6.0% FUTA tax rate and subtract 4.8% to get 1.2%, which is the FUTA rate for California for 2025. Connecticut’s circumstance warrants a potential 1.2% credit reduction because of the four straight Jan. 1 having an outstanding balance on their loan.