What is the unemployment tax rate for 2024 - NYS Department of Labor employer contributions?
I'm trying to figure out the employer unemployment tax rates for 2024 in New York. My small business just hired our 5th employee and I think we need to start paying into the unemployment system. I've been looking at the NYS Department of Labor website but the tax rate information is confusing. Does anyone know what the current rates are? Also wondering if there are different rates for new employers vs established ones?
11 comments
Join the conversation
Connor Murphy
For 2024, New York unemployment insurance tax rates range from 0.6% to 9.9% of taxable wages, depending on your experience rating. New employers typically start at 4.1% for their first few years until they build up an experience rating. The taxable wage base for 2024 is $12,300 per employee. You'll also need to pay the reemployment service fund tax which is 0.075% of total wages.
0 coins
Lucy Taylor
•Thanks! So as a new employer I'd be looking at 4.1% on the first $12,300 of each employee's wages? That's actually higher than I expected.
0 coins
KhalilStar
wait i thought the rates changed every year?? my accountant told me something different last month about the wage base being higher
0 coins
Connor Murphy
•The rates do get updated annually. The $12,300 wage base is for 2024 specifically. Your accountant might have been referring to federal unemployment tax or a different state if you have employees in multiple locations.
0 coins
Amelia Dietrich
Don't forget you need to register with NYS Department of Labor as soon as you have employees subject to UI. The registration process can take a few weeks, so don't wait. You can do it online through the employer services portal. Also keep in mind that your tax rate will adjust based on your claims experience - if former employees file for unemployment benefits, your rate could increase in future years.
0 coins
Lucy Taylor
•Good point about registering early. Do you know if there are penalties for late registration?
0 coins
Amelia Dietrich
•Yes, there can be penalties and interest charges if you don't register when required. NYS Department of Labor takes employer compliance pretty seriously.
0 coins
Kaiya Rivera
Been dealing with unemployment taxes for years and honestly the whole system is a pain. Rates keep going up and the paperwork is endless. At least now you can file quarterly reports online instead of mailing them in like the old days.
0 coins
Katherine Ziminski
•I hear you on the paperwork! But the online system actually makes it much easier to track your account and see your rate changes over time.
0 coins
Mateusius Townsend
Just went through this process myself last year when my consulting firm hit the employee threshold. One thing to add - you'll want to make sure you understand the difference between the State Unemployment Insurance (SUI) tax and the Reemployment Service Fund tax that Connor mentioned. The 4.1% new employer rate is just for SUI. The 0.075% reemployment fund tax applies to ALL wages (not just the first $12,300), so factor that into your payroll calculations. Also, keep detailed records from day one - your future tax rates will depend on your claims history, so good documentation helps if there are ever disputes about benefit eligibility for former employees.
0 coins
Zara Shah
•This is super helpful, thanks for breaking down the difference between SUI and the reemployment fund tax! I didn't realize the reemployment fund applies to ALL wages - that definitely changes my payroll budget calculations. Quick question about the record keeping - what specific documentation should I be maintaining? Just basic employment records or something more detailed for potential UI claims disputes?
0 coins