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Connor O'Neill

Do all employers have to pay unemployment insurance in New York - confused about NYS Department of Labor requirements

I'm starting a small business and trying to figure out if I'm required to pay into the unemployment system. Do all employers have to pay unemployment insurance? I've heard conflicting info about when you're required to register with NYS Department of Labor. Some people say it's based on number of employees, others say it's automatic. I want to make sure I'm following all the rules but the paperwork is confusing me. Anyone know the actual requirements?

Yes, most employers in New York are required to pay unemployment insurance tax to NYS Department of Labor. You're generally covered if you pay wages of $300 or more in any calendar quarter, or if you have one or more employees for some portion of a day in each of 20 different calendar weeks. There are some exceptions for certain types of workers like independent contractors, but the threshold is pretty low.

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So even if I only have part-time employees I still need to register? What happens if I don't realize I'm supposed to and miss the deadline?

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Yara Nassar

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You need to register for unemployment insurance within 10 days of becoming liable. NYS Department of Labor takes this seriously - they can assess penalties if you're late. The tax rate for new employers starts around 4.1% on the first $12,300 of each employee's wages, but it varies based on your experience rating over time.

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wait that seems like a lot of money... is there any way around it if you're just a tiny business?

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Paolo Ricci

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I had trouble getting through to NYS Department of Labor when I needed to register my business last year. Kept getting busy signals and automated messages. Finally used claimyr.com to actually talk to someone - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole process way easier than trying to call directly.

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Thanks for the tip! I'll check that out if I can't get through the normal way.

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Amina Toure

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Just went through this myself. You also need to post the unemployment insurance notice in your workplace where employees can see it. NYS Department of Labor provides the poster when you register. Don't forget about workers comp insurance too - that's separate but also required for most businesses.

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ugh the government just wants to squeeze every penny out of small businesses... my cousin's friend said you can just pay people as contractors and avoid all this mess

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That's not legal advice you want to follow. Misclassifying employees as contractors can result in huge penalties and back taxes. NYS Department of Labor has specific tests for who qualifies as an independent contractor.

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