How to get unemployment insurance for my business - NYS Department of Labor requirements?
I'm starting a small consulting business in NY and trying to figure out the unemployment insurance requirements. Do I need to register with NYS Department of Labor right away or only after I hire employees? I'm really confused about when the coverage kicks in and what forms I need to file. I've been looking at the NYS Department of Labor website but it's not super clear about the timeline for new businesses. Has anyone gone through this process recently?
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Liam O'Sullivan
You'll need to register for unemployment insurance with NYS Department of Labor once you have employees subject to UI coverage. For most businesses, this means when you pay wages of $300 or more in any calendar quarter. You don't need coverage for yourself as the business owner unless you elect it. The registration process involves filing Form NYS-100 within 20 days of becoming liable for UI contributions.
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Mei Liu
•Thanks! So if I'm just doing contract work by myself initially, I don't need to worry about this yet?
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Amara Chukwu
yeah i think you only need it when you start paying people but dont quote me on that lol
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Giovanni Conti
Actually had this same issue last year when I opened my landscaping business. The NYS Department of Labor customer service line was impossible to get through - kept getting disconnected after waiting forever. I ended up using Claimyr (claimyr.com) to actually reach someone who could walk me through the employer registration process. They have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole thing way less stressful than trying to navigate their phone system.
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Mei Liu
•That's really helpful! How long did it take to get everything sorted out once you talked to someone?
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Giovanni Conti
•Once I got through to an actual person, they explained everything in about 15 minutes. The whole registration took maybe a week to process after I submitted the forms.
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Fatima Al-Hashimi
Be careful about the timing requirements! NYS Department of Labor is really strict about the 20-day registration deadline once you become liable. If you miss it, there can be penalties. Also keep in mind that seasonal businesses or businesses with irregular employment patterns might have different rules. You'll want to track your payroll carefully to know exactly when you hit that $300 threshold.
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NeonNova
The whole system is such a pain honestly. I've been dealing with NYS Department of Labor for years with my restaurant and they change the rules constantly. Just make sure you keep detailed records of everything because they WILL ask for documentation later.
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Dylan Campbell
•What kind of records do you mean? Like just payroll stuff or other things too?
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Freya Larsen
Just went through this process myself a few months ago! @Liam O'Sullivan is spot on about the $300 threshold. One thing that helped me was calling the NYS Department of Labor early in the morning (like 8 AM sharp) - seemed to have better luck getting through then. Also, make sure you understand the difference between employees and independent contractors because that affects your UI liability. If you're just doing consulting work solo with 1099 contractors, you're probably not liable yet. But definitely get clarity before you start paying anyone regularly!
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Miguel Silva
•That's a great tip about calling early! I never would have thought of that timing strategy. Quick question - when you say 1099 contractors don't count toward the threshold, does that include if I'm paying the same contractor regularly throughout the year? Like if I have one person I work with consistently but they're still technically a contractor?
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