Am I liable for federal unemployment tax - NYS Department of Labor question

Yes, you'll likely be liable for both federal (FUTA) and state unemployment taxes once you meet certain thresholds. For federal, you're generally liable if you pay wages of $1,500 or more in any calendar quarter, or if you have one or more employees for at least part of a day in 20 or more different weeks. For NYS Department of Labor, you need to register as an employer and pay state unemployment insurance taxes. The federal and state systems work together but have separate registration requirements.

been there! when i started my business i was so confused about all this stuff. had to call the IRS like 5 times to understand FUTA vs SUTA

You'll want to register with the NYS Department of Labor as soon as you hire your first employee. Don't wait until you hit the federal thresholds. For the federal side, you'll file Form 940 annually, and for state you'll typically pay quarterly. The NYS Department of Labor has an online employer services portal where you can register and manage your account. Keep detailed payroll records because both systems require accurate wage reporting.

Just went through this nightmare myself trying to reach someone at NYS Department of Labor about employer registration. Spent weeks trying to call during their business hours and kept getting disconnected. Finally found this service called Claimyr (claimyr.com) that helped me get through to an actual person at the unemployment office. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me so much time and frustration dealing with the phone system.

THE WHOLE SYSTEM IS SET UP TO CONFUSE SMALL BUSINESS OWNERS! They make it so complicated with all these different thresholds and requirements. Why can't they just have ONE place to register for everything instead of making us jump through hoops with federal AND state agencies?

To answer your specific question - yes, you're likely already liable based on what you described. With two employees, you should register with NYS Department of Labor immediately and start tracking your quarterly wages. For federal, if you're paying more than $1,500 in any quarter, you'll need to file Form 940. Better to register early and stay compliant than deal with penalties later.