New York employer tax information
About New York employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
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.
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.
New York payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Department of Taxation and Finance and Department of Labor
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Return of Tax Withheld (NYS-1): processes per pay run
The withholding tax return made by Square Payroll services as both the payment voucher and filing. This form will not appear in your Tax Forms in your Square Dashboard.
Unemployment Insurance Tax Payment: processes quarterly
Quarterly Combined Withholding, Wage Reporting, And Unemployment Insurance Return (NYS-45): processes quarterly
New Hire Report: processes per new employee
Make New York state payroll tax payments
To make New York withholding tax payments, you must be registered for a New York Withholding Identification Number with the New York Department of Labor. The New York Withholding Identification Number will actually be the same number as your FEIN, but it must be registered with the New York Department of Labor. There are two ways to register.
- To register online, apply with the Department of Labor on their website.
- To register by phone, call the Department of Labor at 888-899-8810 or 518-457-4179.
To make New York Unemployment Insurance contributions, the New York Department of Labor will also issue you a New York Employer Registration Number. You can call the Department of Labor at (888) 899-8810 if you need help locating your Employer Registration Number.
Square Payroll does not currently 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.
There are two options for making income tax and unemployment insurance payments:
- To pay online, go to Web File.
- To pay by mail, for New York State Income tax or New York City and Yonkers withholding tax, fill in the paper NYS-1 and write a check payable to NYS Income Tax. Mail your check and the NYS-1 to: NYS Tax Department Processing Unit, PO Box 411, Binghamton, NY 13902-4111.
For New York Unemployment Insurance tax, fill in the NYS-45 and write a check payable to NYS Employment Contributions and Taxes. Mail your check and the NYS-45 to: NYS Employment Contributions and Taxes, PO Box 4119 B, Binghamton, NY 13902-4119.
For more information, reference the NYS-50 (Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax) or contact the New York Department of Labor at 888-899-8810 or 518-457-4179.
Make New York payroll withholding tax filings
Withholding taxes and unemployment insurance are filed on the same tax filing, the NYS-45, Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return.
- To file online, use the New York Department of Taxation and Finance Web File portal. You can also pay taxes via ACH debit or paper check with a payment voucher upon completion.
- To file by mail, download the Form NYS-45 and include the completed form with a check for any payments due. Indicate your federal EIN on the check. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. You will be subject to a penalty if you do not file for the quarter.
For questions about withholding tax payments, contact the New York State Department of Taxation & Finance at 518-485-6654 or visit www.tax.ny.gov.
Make unemployment insurance tax filings in New York
Unemployment insurance and withholding tax are filed on the same tax filing, the NYS-45, Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return. Unemployment tax payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file online, use the New York Department of Taxation and Finance Web File portal. You’ll also be able to pay taxes via ACH debit or paper check with a payment voucher upon completion.
- To file by mail, download the Form NYS-45 and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the New York State Department of Labor. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact New York State Department of Labor at 888-899-8810 or visit labor.ny.gov.
Find your New York tax 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 New York Employer Registration Number. 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 homepage. 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. 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.
Add your New York unemployment insurance 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. Square Payroll will automatically apply the Re-Employment Service Fund based on the rate assigned by the New York Department of Labor for all employers. 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.
Although Square Payroll will assist in verifying your tax rates each quarter, given that you have provided a valid New York Employer Registration Number, you are responsible for ensuring that these rates are accurately reflected in your Tax Info on your Square Dashboard.
New York Paid Family Leave Program
The New York State Paid Family Leave Program allows eligible employees to take time off to bond with a child, care for a close relative with a serious health condition, or help relieve family pressures when someone is called to active military service.
This benefit is meant to be employee-paid through payroll deductions. You may also choose not to deduct your employees and cover the cost for them.
- Get paid family leave coverage from your broker or insurer. This will likely be added to your existing disability insurance policy.
- Post a notice of compliance (similar to your disability and workers’ compensation insurance notices) you have paid family leave coverage.
- Inform your employees about paid family leave coverage by updating employee handbooks or providing written guidance.
- Update your payroll deductions to collect paid family leave contributions from your employees. Be sure to apply this setting for each applicable employee. Learn how to add and manage team members.
- Inform non-eligible employees that they can choose to waive coverage by completing a waiver.
- Learn more about the Family Leave Program and what you need to know as an employer.
Square Payroll supports withholding employee contributions towards the New York State Paid Family Leave Program. The payroll contribution is a percentage of each applicable employee’s weekly pay, capped at an amount determined by the State Average Weekly Wage (SAWW) for the year.
Square Payroll automatically computes employees’ Paid Family Leave contributions based on this limit and the employee rate cannot be edited.
To turn on these payroll deductions:
- Sign in to your Square Dashboard, select Staff & payroll > Team.
- Select an employee.
- Go to the Paid Family Leave section of the employee’s profile.
- Toggle on Withhold New York State Paid Family Leave Insurance for this employee.
Square will not debit the amount withheld from your employees. Square Payroll leaves the withheld amount from each employee’s check in the employer’s payroll bank account. It is the employer’s responsibility to ensure this amount is paid to your private insurance provider.
Additional New York-specific information
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. Learn more about PrompTax.
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. Learn more about MCTMT.
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.
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 in their profile.
Square Payroll supports withholding employee contributions towards the New York State Paid Family Leave Program. Read more about Paid Family Leave.
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.).
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.