When do employers have to pay unemployment - NYS Department of Labor tax obligations?
I'm trying to understand employer responsibilities for unemployment insurance. My small business just hired our 4th employee and I'm confused about when we need to start paying into the NYS Department of Labor system. Do we pay quarterly? Is there a payroll threshold? Also wondering if there's a grace period for new businesses or if we're immediately liable once we cross certain employee counts. Any business owners here know the specifics?
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Arnav Bengali
In New York, employers must pay unemployment insurance tax once they have one or more employees working 20 or more weeks per year, OR if their quarterly payroll exceeds $300. You pay quarterly to NYS Department of Labor, and the rate varies based on your experience rating. New employers typically start at 4.1% for the first few years until they build a claims history.
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Scarlett Forster
•Thanks! So since we've had 4 employees for about 6 weeks now, we definitely need to register. Do I register directly with NYS Department of Labor or through the state tax department?
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Sayid Hassan
just went through this last year, you register online through the NYS Department of Labor business portal. they'll send you forms quarterly after that. make sure you keep good records of all wages paid because they audit randomly
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Rachel Tao
The payment schedule is quarterly - due dates are usually end of April, July, October, and January. You'll also need to file annual reports. If you're late on payments, NYS Department of Labor adds penalties pretty quickly. I'd suggest calling them directly if you need help with registration, but good luck getting through. I spent hours on hold last time I needed to reach an agent about my account setup.
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Derek Olson
•Actually had luck using claimyr.com recently when I couldn't get through to NYS Department of Labor. They have this system that calls for you and connects you to an actual agent. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me from sitting on hold for hours.
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Rachel Tao
•Interesting, never heard of that service before. Might be worth trying since their phone system is such a nightmare.
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Danielle Mays
Don't forget about the State Disability Insurance (SDI) tax too! It's separate from unemployment but you pay both at the same time. The SDI rate is much lower but still required.
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Roger Romero
ugh the whole system is so confusing for small businesses. why can't they just make it simple instead of all these different thresholds and quarterly deadlines
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Arnav Bengali
•I agree it's complex, but once you get set up the quarterly process becomes routine. The important thing is not to wait - penalties for late registration can be substantial.
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