Hiring employees (or buying a business that already has employees who will now be working for you)
Video: Withholding Tax
Filing RequirementsYou must obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). You’ll need your EIN to identify your business to the IRS and New York State. You can get your EIN by:
- applying online, or
- calling the IRS at 1 800 829-4933, or
- sending the IRS federal form SS-4, Application for Employer Identification Number. You can get form SS-4 online or by calling 1 800 829-3676.
- After you get your EIN, you must register with New York State. You can register by:
- applying with the Department of Labor online, or
- calling the Department of Labor at 1 888 899-8810 or (518) 457-4179.
You must report information about each of your newly-hired or rehired employees who will work in New York State. You have 20 days from an employee’s hiring date to report certain identifying information to the Tax Department. The hiring date is the first date any services are performed for which you will pay the employee wages or other compensation, or the first day an employee working for commissions is eligible to earn commissions. For more information, see:
- New Hire Reporting
- Publication NYS-50, Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
If you cannot apply online, the Tax Department can provide assistance with a paper Form NYS-100, and assistance using an interpreter, if requested.
You may have to withhold New York State, New York City, or Yonkers income tax from your employees’ pay. You must periodically send these withholding taxes and withholding tax returns to the Tax Department. Your employees use the tax you withhold to meet their income tax obligations. For more information:
You may have to pay New York State unemployment insurance taxes. Unemployment insurance provides temporary income for eligible workers who lose their jobs through no fault of their own. For more information:
If you must pay unemployment insurance taxes, you must also file a quarterly wage report with the Tax Department. The Department of Labor uses this information to determine workers’ benefits. For more information:
You may have to pay workers’ compensation and disability insurance for your employees. These programs provide benefits to workers who become injured or ill, on and off the job. Visit the State Insurance Fund or call 1 888 875-5790. Many private insurance companies also have information.
For more detailed information about starting or buying a small business, see Publication 20, New York State Tax Guide for New Businesses.