How to calculate employer unemployment tax for NYS Department of Labor - confused about rates and wage base

For 2025, New York's SUI (State Unemployment Insurance) tax rate varies based on your experience rating, but new employers typically start around 4.1% on the first $12,300 of each employee's wages. The FUTA (Federal Unemployment Tax Act) rate is 6.0% but you get a credit of up to 5.4% if you pay state taxes on time, so it's effectively 0.6% on the first $7,000 per employee. Your total calculation would be: (Employee wages up to $12,300 × NY SUI rate) + (Employee wages up to $7,000 × 0.6% FUTA rate).

Your experience rating with NYS Department of Labor will determine your exact SUI rate after your first few years. New employers get assigned a standard rate but it changes based on how many former employees file unemployment claims. Keep good records of separations and reasons - voluntary quits vs layoffs vs terminations for cause all affect your rating differently.

dont forget you also need to register with NYS Department of Labor for employer account if you havent already, they'll send you quarterly reports showing exactly what you owe

I was struggling with the same calculations last year and kept getting different answers from various sources. What really helped me was using Claimyr (claimyr.com) to actually speak with a NYS Department of Labor representative who walked me through the employer requirements. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how their service works. Much easier than trying to navigate the phone system myself when I had specific questions about my business situation.

The wage base amounts change every year so make sure you're looking at current info. I think the NY wage base was lower a few years ago, maybe around $10,900? Also remember that some employees might be exempt from unemployment tax depending on their classification.

Just to add - if you're doing payroll yourself rather than using a service, you'll need to file quarterly wage reports with NYS Department of Labor and make payments. Missing deadlines can result in penalties and interest charges. The due dates are usually the last day of the month following the end of each quarter.

Yes, there are separate penalties for late filing and late payment with NYS Department of Labor. Even if you file your quarterly report on time, you'll still face interest charges and penalties if you don't pay the taxes owed by the deadline. The interest rate is set by the state and compounds daily, so it adds up quickly. I learned this the hard way when I had a cash flow issue one quarter - filed on time but paid a week late and got hit with both interest and a penalty fee. It's worth setting up automatic payments or at least calendar reminders to avoid these extra costs.

For penalty specifics, NYS Department of Labor typically charges 1% per month for late payments (with a minimum penalty) plus daily compound interest that's adjusted periodically. The exact rates can change so check their current penalty schedule. As for automatic payments, you can set them up through the NY.gov online services portal once you have your employer account established - look for the "Online Services" section on the DOL website. You'll need your employer registration number to access it. I'd recommend calling them to confirm the current penalty structure since rates can shift annually, and having that direct confirmation helps with your budgeting planning.