Employer Compensation Expense Program (ECEP) Employer Election
Participation in the optional Employer Compensation Expense Program (ECEP) is not automatic. Each year, you must elect to participate. Between October 1 and December 1, use our online ECEP Employer Election application to enroll for the next calendar year.
Note: If you are not already an active withholding tax filer with New York State, you must register before you can make this election.
To get started:
- Log in to your Business Online Services account, or create one. (To learn how to create an account, view our account creation demo.)
- Select the ≡ Services menu in the upper-left corner of your Account Summary homepage.
- Select Employment and withholding tax, then select ECEP Employer Election from the drop-down menu.
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Important: Employers are not required to participate in the ECEP. If you choose to participate and make this election,
- the ability to revoke the election is limited (for more information, visit Revoking the Employer Compensation Expense Program (ECEP) employer election),
- it will remain in effect for the entire election period,
- you must pay the Employer Compensation Expense Tax (ECET) on all covered employees, and
- you must file all four quarterly ECET returns.
Who can make the election?
The person authorized to make the election will vary by the type of entity:
| If the employer is: | The election is made by: |
|---|---|
| a corporation (for profit or not for profit) | an authorized* officer or manager. |
| not a corporation (including a sole proprietorship and a partnership) | any member, owner, or other individual with authority to bind the entity or sign returns. |
| a trust | the unanimous consent of all the trustees. |
| a government entity | the chief executive officer. |
*Authorized means the officer or manager is authorized to make the election under the law of the state where the corporation is incorporated or under the employer’s organizational documents.
Resources
- Employer Compensation Expense Program (ECEP)
- TSB-M-18(1)ECEP, Employer Compensation Expense Program
