New York Employer Tax Information
To sign up for Square Payroll in New York, you must be a registered employer with the New York State Department of Labor and the New York Department of Taxation and Finance, and provide us with both your New York Employer Registration Number and your Unemployment Insurance (UI) Tax Rate.
Add Your New York Payroll Account Numbers to Square Payroll
You must be a registered employer with the New York Department of Labor and the Department of Taxation and Finance to use Square Payroll. Registration is required to have valid New York Account numbers, which we must have to make New York state tax filings on your behalf.
Don’t Have Your New York Payroll Account Numbers?
To hire employees in New York, you must first register your business online. Online registration registers your business with both the New York Department of Labor and the New York Department of Taxation and Finance.
Upon completing registration, you will receive your eight-digit (XXXXXXX X or XX-XXXXX X) New York Employer Registration Number. Enter this number in the New York Employer Registration Number field.
If you only have seven of your full eight-digit Employer Registration Number, you can confirm the eighth digit by logging into your DOL Employer Home Page. From here, type in your FEIN and the seven digits of your Employer Registration Number you currently have and it will show you your full eight digit account number.
Your New York Withholding Identification Number will match your nine digit (XX-XXXXXXX) Federal Employment Identification Number (EIN). This information will auto-populate in the New York Withholding Identification Number field when you enter your EIN. If your business was assigned a branch code by the New York Department of Taxation and Finance, enter it in the second field. Otherwise, enter 00.
Note: Your New York Withholding Identification Number is only valid if you have registered with the New York Department of Labor and the New York Department of Taxation and Finance.
Can’t Locate Your New York Payroll Account Numbers?
To locate your New York Employer Registration Number:
Find this on any previously filed quarterly tax return (Form NYS-45).
Call the NY Department of Labor at 888-899-8810.
To locate your New York Employer Withholding Identification Number:
Find this on any previously filed quarterly tax return (Form NYS-45).
Locate any of your previously filed federal tax returns (as this number matches your FEIN).
Learn how to locate or obtain an EIN.
Add Your New York UI Tax Rate to Square Payroll
You must provide your UI Tax Rate when signing up for Square Payroll so we can accurately withhold this tax. This is the total of your normal and subsidiary tax rates. The Re-employment Service Fund Rate is a fixed 0.075% for all employers and is not included in the UI Tax Rate. To locate your UI Tax Rate:
If you are a new employer, you will receive your UI Tax Rate after you complete the online registration with the Department of Labor and the Department of Taxation and Finance.
If you are a registered employer switching to Square Payroll, look up your rate online.
Find your rate on the Notice of Unemployment Tax Rate (Form IA 97) mailed by the Department of Labor each March. The UI Tax Rate is the sum of the normal and subsidiary tax rates.
You are responsible for ensuring Square Payroll has the correct UI Tax Rate for your business. Please contact us if you need to update your rate.
New York Payroll Tax Details
Square Payroll processes the following per the frequency below to the listed state agencies:
|Department of Taxation and Finance and Department of Labor||Return of Tax Withheld (NYS-1) Note: The withholding tax return made by Square Payroll services as both the payment voucher and filing. This form will not appear under Tax Forms in your online Square Dashboard.||Per Pay Run|
|Unemployment Insurance Tax Payment||Quarterly|
|Quarterly Combined Withholding, Wage Reporting, And Unemployment Insurance Return (NYS-45)||Quarterly|
|New Hire Report||Per New Employee|
Additional New York Specific Information
PrompTax: At this time, Square Payroll cannot support employers that are required to remit taxes via PrompTax. If your aggregate tax withheld for the previous tax year was $100,000 or more, you’re likely required to remit tax via PrompTax. If you voluntarily opted into using PrompTax, you may opt out of the PrompTax program through your Business Online Services account. Read more about PrompTax.
MCTMT: Square Payroll does not support the Metropolitan Commuter Transportation Mobility Tax (MCTMT). Only certain employers and self-employed individuals doing business within the metropolitan commuter transportation district (MCTD) are subject to this tax. Read more about MCTMT.
State Disability Insurance (SDI): Square Payroll supports withholding for New York State Disability Insurance (SDI) Tax. Employees contribute 0.5% of their gross pay towards SDI, not to exceed $0.60 a week. Square Payroll automatically computes employees’ SDI contributions based on this limit and the employee rate cannot be edited. The SDI tax that is withheld will not leave your bank account; the state of New York requires that all employers with employees working in New York obtain disability insurance through a private insurance provider.
Local Taxes: Square Payroll also supports the New York City and Yonkers Tax. If your employee is a resident of either of these counties, their local tax withholding information can be modified by checking the box “Include separate New York tax withholding information”.
State Paid Family Leave (PFL) Contributions: Square Payroll supports withholding employee contributions towards the New York State Paid Family Leave Program. Read more about Paid Family Leave.
Withholding Tax Payments: In New York, state and local income withholding tax payments (NY State Income Tax, NYC Tax, Yonkers Tax) are submitted via electronic Form NYS-1 immediately after payroll is sent and debited directly from your bank account to ensure timely payments. You will see a debit from your bank account titled NYS_DTF WTAX TAXPAYMENT followed by a series of numbers when the NYS-1 is successfully submitted to the New York State Department of Taxation and Finance. Square Payroll will debit and remit all other taxes as applicable (Federal Income Tax, Federal Unemployment Tax [FUTA], State Unemployment Insurance [UI] Tax, etc.).
Employer Compensation Expense Program (ECEP): This program established an optional Employer Compensation Expense Tax (ECET) that employers can elect to pay if they have employees that earn over $40,000 annually in wages and compensation in New York State. Employees of participating employers may be eligible to claim the ECEP wage credit when filing their New York State personal income tax return. This is not currently supported by Square Payroll. Read more about the Employer Compensation Expense Program.