How does an employer pay unemployment taxes in NYS Department of Labor system?
I'm starting my own small business and trying to understand how the NYS Department of Labor unemployment system works from the employer side. How exactly do employers pay into unemployment? Is it quarterly payments? Do I register somewhere specific with NYS Department of Labor? I'm confused about the whole process and want to make sure I'm compliant from day one. Any business owners here who can explain the basics?
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Javier Cruz
You'll need to register with NYS Department of Labor as soon as you hire your first employee. Employers pay unemployment insurance (UI) taxes quarterly through the NYS Department of Labor employer portal. The rate depends on your industry and experience rating - new employers typically start around 4.1% of wages up to the taxable wage base.
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Natasha Orlova
•Thanks! Do I pay this on all wages or is there a cap? And where exactly do I register with NYS Department of Labor?
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Emma Thompson
The taxable wage base for 2025 is $12,000 per employee, so you only pay UI taxes on the first $12K each worker earns. You register online through the NYS Department of Labor Business Services Online portal. You'll also need to file quarterly reports showing wages paid and calculate your UI tax owed.
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Malik Jackson
•just make sure you dont miss the deadlines or they'll hit you with penalties!! learned that the hard way
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Isabella Costa
I've been dealing with NYS Department of Labor employer stuff for years and honestly their phone support for employers is terrible. When I had questions about my UI tax rate calculation, I couldn't get through to anyone. Eventually found this service called Claimyr (claimyr.com) that helps people actually reach NYS Department of Labor agents by phone. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out if you run into issues down the road.
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Natasha Orlova
•Good to know there are options if I can't get through! The whole system seems pretty complex for new business owners.
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StarSurfer
Don't forget you also need to post the required unemployment insurance notices in your workplace and keep payroll records for at least 4 years. NYS Department of Labor can audit you and they want to see everything documented properly.
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