Do I need unemployment insurance for my business in New York?
I'm starting a small consulting business in Rochester and trying to figure out all the insurance requirements. Do I need to get unemployment insurance for my business through NYS Department of Labor? I'll probably have 2-3 employees within the first year. I'm really confused about what's required vs optional and when I need to register. Anyone been through this process recently?
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Diego Chavez
Yes, in New York you're required to carry unemployment insurance once you have employees. You need to register with NYS Department of Labor as soon as you hire your first employee or within 10 days of becoming liable for coverage. The liability kicks in when you pay wages of $300 or more in any calendar quarter. You'll get an account number and quarterly reporting requirements.
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Chloe Robinson
•Thanks! Do I register online through the NYS Department of Labor website or do I need to mail forms?
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NeonNebula
You register online through the NYS Department of Labor Business Services Online portal. It's pretty straightforward - you'll need your EIN, business details, and estimated quarterly wages. The UI rate for new employers starts around 4.1% but can vary based on your industry classification. Make sure you keep good payroll records from day one.
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Anastasia Kozlov
•Just went through this last year and the online system was down for maintenance when I needed to register. Had to call NYS Department of Labor and spent forever on hold. If you need to reach them quickly, I found this service called Claimyr that helps you get through to agents faster - claimyr.com. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works.
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Sean Kelly
wait i thought unemployment insurance was just for employees who get laid off? why do business owners need it??
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Diego Chavez
•It's not for the business owner - it's insurance that covers your employees if they become unemployed. As an employer, you pay premiums to NYS Department of Labor so your workers can collect benefits if they lose their jobs. It's required by law, not optional.
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Zara Mirza
The quarterly reporting is the real pain honestly. You have to file even if you had zero wages that quarter. NYS Department of Labor will send you notices but don't rely on getting them - set your own calendar reminders for the due dates or you'll get hit with penalties.
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Nia Thompson
One thing to keep in mind is that the UI tax rate can actually decrease over time if you have low turnover. New employers start at the standard rate, but after a few years of experience, your rate gets adjusted based on your "experience rating" - basically how many former employees filed for unemployment benefits. So if you're good at retaining employees, your costs can go down significantly. Also, make sure you understand the difference between employees and independent contractors for UI purposes - misclassifying can get you in trouble with NYS Department of Labor audits.
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Ruby Garcia
•That's really helpful about the experience rating! I hadn't considered how employee retention could impact the UI rate long-term. Just to clarify - when you say "misclassifying" workers, what are the main red flags NYS Department of Labor looks for during audits? I want to make sure I classify my consultants correctly from the start to avoid any issues down the road.
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