Who is exempt from paying unemployment taxes - confused about NYS Department of Labor requirements

There are several exemptions from NYS Department of Labor unemployment taxes. Agricultural employers with fewer than 10 employees in 20 weeks or who paid less than $20,000 in wages are generally exempt. Domestic workers earning less than $500 per quarter from a single employer are also exempt. Religious organizations, some non-profits, and family businesses where you only employ immediate family members may qualify for exemptions too. You'll want to check the specific NYS Department of Labor guidelines since the rules can be complex.

Just went through this myself last year. The key thing is understanding that most regular businesses DO have to pay unemployment taxes once they meet the threshold requirements. In NY, if you have employees who earned $300 or more in any calendar quarter, you're generally required to register and pay. The exemptions are pretty specific and don't apply to most typical business situations.

I spent HOURS trying to get through to NYS Department of Labor about this exact question last month. Their phone lines are constantly busy and when you do get through, you get transferred around forever. Finally found this service called Claimyr (claimyr.com) that actually got me connected to a real person at NYS Department of Labor who could answer my unemployment tax questions. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me so much frustration compared to trying to call directly.

omg this unemployment tax stuff is so confusing! I thought only big companies had to worry about this but apparently even small businesses get hit with all these requirements. The NYS Department of Labor website is like reading a foreign language sometimes.

Don't forget about independent contractors - they're generally exempt from unemployment tax requirements since they're not considered employees. But you have to be really careful about classification because NYS Department of Labor is cracking down on misclassification issues. If someone should be classified as an employee but you treat them as a contractor, you could be liable for back taxes and penalties.

Adding to what others have said - one thing that caught me off guard was that the exemptions can change if your business grows. For example, if you start as a family business employing only relatives but later hire outside employees, you might lose that exemption status. Also, some exemptions have annual wage thresholds that reset each year, so you need to monitor your payroll carefully. I'd recommend keeping detailed records from day one and maybe consulting with a payroll specialist who knows NYS Department of Labor requirements inside and out. It's one of those areas where being proactive can save you major headaches down the road.