New York Payroll Tax and Registration Guide

Use this checklist to make sure you’ve covered everything required to set up your account as a New York employer so OnPay can accurately file and pay taxes on your behalf: 

OnPay handles the filing of all state and local taxes for businesses in New York, including:

If you are an existing employer who has previously run payroll in New York, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in New York, you will need to register your business with the New York Department of Taxation & Finance and the New York Department of Labor. This must be completed for OnPay to be able to file and pay your NY taxes.

New York Withholding ID and Unemployment Insurance Registration Number

Existing NY Employer: 

• If you have already been processing payroll and filing/paying withholding and unemployment taxes to New York then there is no additional registration needed.
• You can find both of these numbers on any previously filed quarterly tax return (Form NYS-45) or by calling the NY Department of Labor at 888-899-8810.
• Note that your state withholding tax ID will be the same as your federal employer identification number (EIN) assigned by the IRS followed by 00 (unless you have multiple business locations)

New NY Employer: Register with the New York Department of Labor 

• Register your business for income withholding and unemployment tax on the New York Department of Labor website. (Registering with the New York Department of Labor will automatically register you for the New York Department of Taxation and Finance as well.)
  • During registration, you will come across a section called Agent C/O Address which will ask if you would like Unemployment related mail to be directed to your payroll provider. Please select No.
  • If you are a Non-Profit Organization, please fill out the NYS-100N form.
• You should be issued your IDs within 7-10 days of registering.

New York State Unemployment Insurance (SUI) Rate

Existing NY Employer: 

• Find your rate on the Notice of Unemployment Tax Rate (Form IA-97) mailed by the Department of Labor each March.
• Employer contribution rates range from 0.525% to 7.825%, with a wage base of $12,000.

New NY Employer: Register with the New York Department of Labor

• You will receive your UI Tax Rate after you complete the online registration with the Department of Labor and the Department of Taxation and Finance.
• It's important you do not combine the Reemployment Fund of 0.075% with your SUI rate. 
• The SUI rate for new employers is 4.025%, with a wage base of $12,000.

Learn about state disability insurance required for NY employers

In the state of New York, employers are required to provide State Disability Insurance (SDI) coverage to employees for an off-the-job injury or illness. 

New York allows employers to withhold $0.60 per week from employees to help fund this policy. OnPay will automatically process these SDI withholdings when you run payroll, leaving the funds in your bank account for you to pay to your SDI insurance provider. Note that the deduction amount is not included in the total tax draft and is not paid by OnPay.

If you need some help getting SDI insurance coverage for New York, talk to one of our benefits experts to get started.

OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to submit a Tax Information Access and Transaction Authorization Form (TR-2000). You will also need to add OnPay as your third party agent. To do this, please follow the instructions in this article.

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