New York Salary Calculator
New York State might be home to the city that never sleeps, but we’d hate for you to lose sleep over its many payroll taxes and paycheck laws.
There’s a lot to keep track of when it comes to payroll. We’ll help you sort through it with these frequently asked questions (FAQs) from business owners based in New York.
New York payroll taxes
Here’s what you need to know about withholding payroll taxes in New York.
New York payroll taxes start with employees filling out Form W-4. This information helps you determine how much you should withhold.
If an employee does not complete this form, you will need to withhold tax as though no exemptions were claimed.
Employees need to update Form W-4 in case of life events (such as marriage, divorce, birth or adoption of a child, etc.) that may impact their taxes.
The personal income tax rate in New York is 4.00%–10.90%.
New York does not have reciprocity with other states.
Additional New York forms
In addition to Form W-4 mentioned above, New York employers also need to file the following forms:
Return of Tax Withheld Payment Coupon (NYS-1)*
Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (NYS-45)
Employer's Quarterly Metropolitan Transit Tax Form (MTA-305)
NY New Hire Report
New York unemployment tax rate
New York requires most employers to pay unemployment insurance tax to help compensate workers who are out of work through no fault of their own.
Employers pay New York unemployment tax on the first $12,300 of an employee’s wages.
The tax rate ranges from 2.1%–9.9%.
Unemployment tax in New York should be paid quarterly to the New York State Department of Labor.
Paying New York taxes
New York’s payment frequencies is quaraterly.
Other New York taxes
New York employers are also required to pay or withhold the following taxes.
New York salary threshold
The New York salary threshold is as follows:
$1,125 per week for employers in New York City and Nassau, Suffolk, and Westchester counties
$990 per week for employers in the rest of the state
Workers’ Compensation
Requirements to obtain Workers' Compensation vary by state. This table outlines some of these requirements. If you determine that your company is required to purchase Workers' Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers' comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
New hires
Employers in New York need to report new employees.
New hires must be reported to New York Department of Taxation and Finance.
New hires must be reported within 20 days of their first day of work.
Payroll stubs
You must provide a pay stub to every employee that includes:
Company’s legal name and address
Employee’s name and last four digits of their Social Security number
Pay period beginning and end dates
Total hours worked
Rate of pay
Gross wages
The amount and reason for any deduction
Final paychecks
Employers must pay final wages to employees by the next scheduled payday.
Time off
New York law requires employers to provide the following types of time off to employees.
Jury duty
In some circumstances, employers are obligated to provide paid time off to allow employees to vote.
Family & parental leave
Sick leave applies to all employers; it can be unpaid if there are fewer than five employees and net income is less than $1 million.
Medical leave
Domestic violence leave applies under sick leave law.
