Hiring Your First Employee in New York: Registrations and Coverage

New York has its own steps for employers on top of the federal ones. This guide follows the New York State Tax Department’s overview of what to do when you hire. For the federal basics, see hiring your first employee.

1. Get an EIN

You need an Employer Identification Number from the IRS. See how to get an EIN.

2. Register with New York

Register through New York Business Express using Form NYS-100, the employer registration for unemployment insurance, withholding, and wage reporting. You can also register through the Department of Labor.

3. Report new hires within 20 days

Report identifying information for each new or rehired employee to the Tax Department through New Hire Reporting. The hire date is the first day you pay the employee for services.

4. Withhold income tax

You may need to withhold New York State, New York City, or Yonkers income tax. You send the withholding and file Forms NYS-1 and NYS-45 with the Tax Department. The Tax Department’s Publication NYS-50 is the employer’s guide.

5. Unemployment insurance

If you are required to pay unemployment insurance contributions, contact the Department of Labor. If you owe them, you must also file quarterly wage reports with the Tax Department.

6. Insurance coverage

The Tax Department says you will probably need all three of these:

Workers’ compensation
Disability benefits
Paid Family Leave

Contact the New York Workers’ Compensation Board about employer requirements for your business.

7. Federal payroll

Do not forget federal duties: Forms W-4 and I-9, withholding, deposits, and Form 941. See payroll tax deposits.

Worker classification

New York can use its own tests for whether someone is an employee. See contractor vs. employee.

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Sources

This article is general information, not tax or legal advice. Requirements depend on your business. Confirm them with each New York agency.