New York Registration and Tax Info Updated

New York Registration and Tax Info

Not only does New York have a unique minimum wage rate compared to the rate required by the federal government, but New York is also one of the few states with a State Disability Insurance program. Moreover, it also has a paid family leave program for employees within its borders.

When it comes to processing payroll, New York-based organizations must handle the following taxes in addition to those required by the federal government:

• Personal Income (a.k.a. State Income Tax) (impounded and filed by Payroll Vault)
• State Unemployment Insurance (SUI) (impounded and filed by Payroll Vault)
• State Disability Insurance (SDI) (Deductions calculated and withheld from employees and paid by client)
• Paid Family and Medical Leave (PFML) (Deductions calculated and withheld from employees and paid by client)
• Local Taxes (impounded and filed by Payroll Vault)
• Metropolitan Commuter Transportation Mobility Tax (MCTMT) (Impounded and filed by Payroll Vault)

 

You will be entering client tax information on the Tax Maintenance Screen under Client Management > Taxes or in the new client wizard when prompted for tax information.

• Missing information such as tax account numbers and tax rates can be entered later
  • The system will default to an active tax status, “Applied for” EIN, payment frequency most commonly used and a default payment method
    • Change all payment methods to ACH credit if option is available
  • Be aware that without a tax account number any taxes impounded will not be paid until the account number has been entered and the tax department is notified.
  • Any penalties or interest incurred due to unpaid taxes due to missing or incorrect tax information will be the responsibility of the franchise

The information below was last updated January 10, 2025. It is not intended as legal or tax advice.

 

New York Payroll Tax Rates

Registering for New York State Income Tax (SIT) and Unemployment Insurance (SUI)

Withholding income tax and unemployment tax account registration—includes PrompTax info

Register for withholding income tax and unemployment tax

You should get your account numbers and unemployment rate(s) 7–10 business days after registering online.

1. Go to the New York Department of Labor website to register for both income withholding and unemployment tax.
   • Complete the NYS-100 Non-profits: Complete a NYS-100N form instead.
2. When asked if you want unemployment-related mail sent to your payroll provider, select No. This happens in the "Agent C/O Address" section

After registering with the New York Department of Labor, you'll also be registered with the New York Department of Taxation and Finance.

• The Account number is the same as the business FEIN
• Confirm the payment frequency with the tax agency. Here’s a link to more info on New York payment frequency https://www.tax.ny.gov/bus/wt/duedates.htm
• Payment Method is “ACH Credit”
  • You will need to enter the EFT Pin.
  • If you need the pin, you can find it via the NY state portal
  • Click the payment method “ACH Credit” to enter the pin

        3. To gain access to be able to file and pay New York taxes, the Payroll Vault tax team will                    need the withholding number and a filed New York State corporation withholding tax                    return within the last 12 months.

• • If the company is brand new they will receive a 5 digit code

New York State Unemployment Insurance (SUI) and Reemployment Service ER

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

New York SUI Tax Details
Taxable Wage Base	$12,800
Employee Subject to Tax	No
Rates for Experienced Employers	2.10% – 9.90%
Rates for New Employers	4.10%
Period Effective	Calendar Year

• The New York SUI and Reemployment Service ER account number is eight digits
• The effective date for all SUI and Reemployment ER fields should be entered as 1/1/20XX.
• The Payment Frequency is “Q” (Quarterly)
• The Payment method is “Debit – Manual Pay”

New York State Disability Insurance (SDI)

These are set up as "taxes" due to the complication of employee deduction limits and state-required coverage. Employers may opt not to withhold on employees at all. As private insurance plans, payable to the insurer of choice, isolved Tax does not support payment of premiums or the quarterly payment forms.

Owner- only is exempt from SDI and PFL. This can be marked on the tax information screen

Best Practice: Mark the Tax status as “Block Tax Filing” The system will deduct the amounts from the employee but does not impound the monies. Effective Date 1/1/XXXX

New York Paid Family and Medical Leave (PFML) Tax

Like SDI, New York’s Paid Family Leave (PFL) program is funded via mandatory payroll deductions.

For owner - only see above for SDI

Best Practice: Mark the tax status ”Block tax filing”. The system will deduct the amounts from the employee but does not impound the monies. Effective date 1/1/XXXX
 

New York Local Taxes

In addition to the state-wide taxes mentioned above, the following cities have unique income taxes as well (isolved will prompt you to set these up based on employee resident locations)

• The Account numbers for the local taxes will be the same as the business FEIN
• The Payment frequency will default to the same frequency chosen for State Withholding
• Payment Method “ACH Credit”

• New York City also requires a 4.25% income tax from its residents.

• Yonkers also requires a 1.959575% income tax from its residents and a 0.50% income tax from nonresidents who work in the area. 

New York Metropolitan Commuter Transportation Mobility Tax (MCTMT)

An employer is subject to the MCTMT if it:

• is required to withhold New York State income tax from wages; and
• has greater than $312,500 in payroll expense for covered employees across both zones of the Metropolitan Commuter Transportation District (MCTD) in any calendar quarter.

The tax rates in the two zones differ and are based on the employer’s payroll expense in the specific zone.

• The system will automatically set this tax up based on business location entered.
• The Account number (EIN) will be the same as the business FEIN
• The Payment Frequency is “NYSIT”
• Payment Method “ACH Credit”

 

Miscellaneous New York Tax Information

POA Package TR2000

 

 

 

 

 

 

 

 

New York Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. New York currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in New York pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
 

New York Minimum Wage Rates

Wage Type	New York Rates	Federal Rates
Minimum Wage	$15.50	$7.25
Tipped Minimum Wage	$12.90 (Service) $10.35 (Food Service)	$2.13
Actual Tip Credit	$2.60 (Service) $5.15 (Food Service)	$5.12

In addition to the state-wide minimum wage rates above, some cities have unique minimum wage rates as well:

Wage Type	Long Island / New York City / Westchester Rates
Minimum Wage	$16.50
Tipped Minimum Wage	$13.75 (Service) $11.00 (Food Service)
Actual Tip Credit	$2.75 (Service) $5.50 (Food Service)