New York Hourly Paycheck and Payroll Calculator

Need help calculating paychecks? Use Gusto’s hourly paycheck calculator to determine withholdings and calculate take-home pay for your hourly employees in New York.

Simply enter their federal and state W-4 information as well as their pay rate, deductions and benefits, and we’ll crunch the numbers for you.

The information provided by the Paycheck Calculator provides general information regarding the calculation of taxes on wages for New York residents only. It is not a substitute for the advice of an accountant or other tax professional. The Paycheck Calculator may not account for every tax or fee that applies to you or your employer at any time. ZenPayroll, Inc., dba Gusto ("Gusto") does not warrant, promise or guarantee that the information in the Paycheck Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct or indirect consequence of its use. By using the Paycheck Calculator, you waive any rights or claims you may have against Gusto in connection with its use.

New York Hourly Calculator

New York State is the land of the Big Apple, Niagara Falls, and 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 state.

A Venn diagram of New York Employer vs Employee taxes

Questions about federal payroll taxes

FAQ #1: Do I have to withhold any federal payroll taxes from my employees’ paychecks?

Yes. You’ll have to withhold federal income tax and FICA tax from your employees’ earnings. Some employees may also be subject to the Additional Medicare tax. 

The amount of federal income tax you’ll withhold is based on information from each employee’s Form W-4, which they’ll complete when they’re hired. Your employee’s earnings and tax filing status, along with other factors, determine the withholding amount.

FICA stands for the Federal Insurance Contribution Act and the tax is a combination of Social Security and Medicare taxes. Employees pay 6.2% of their wages for Social Security tax but are only taxed on their first $147,000 of wages. They also pay 1.45% for Medicare tax and there is no wage cap. 

Employees that earn more than $200,000 a year are subject to the additional Medicare tax and the rate is 0.9%. 

Keep in mind these rates and amounts are for 2022 and can be changed each year.

FAQ #2: Ok but what about me? Do I need to pay any federal payroll taxes?

Yes, employers must also pay some federal payroll taxes. 

You’ll need to contribute the same amount of FICA tax as your employees. So you’ll pay 6.2% of each employee’s wages for Social Security tax (subject to the same wage cap) and 1.45% for Medicare tax. 

You’ll also have to pay FUTA tax. FUTA is short for Federal Unemployment Tax Act and for 2022 it requires employers to pay 6% on the first $7,000 of each employee’s wages each year. Credits are available that can reduce your rate to 0.6%. 

FAQ #11: When an employee quits, when do I have to pay them their final paycheck?

You will have to provide their final paycheck on the next regularly scheduled pay date. This is the same for terminated employees. 

Payroll taxes in New York state

FAQ #3: What about state payroll taxes? How do I know how much to withhold for New York State income tax?

Like the Form W-4 for federal income tax, the amount of New York state income tax you withhold from an employee’s wages is based on the Form IT-2104. New employees should complete this form when they start and anytime their financial situation changes. 

This form will also help you figure out how much New York City and Yonkers city income tax to withhold. We’ll talk more about this in FAQ #10. 

FAQ #4: I have employees that aren’t New York residents but work for me in New York State. Do they pay New York State income tax?

Yes. Non-residents that work in New York State are subject to withholding of New York State income tax. These employees fill out Form IT-2104.1 and you use it to determine how much tax to withhold.

FAQ #5: Does New York State have a state unemployment tax?

It does and it’s paid by you. Each March, a notice with your rate will be sent to you because rates are unique for each business. The 2022 rates range from 2.1% to 9.5% and are paid on the first $12,000of each employee’s wages each year. This wage base changes each year. You can find the annual wage base on the New York State Department of Labor’s website.

New employers pay a rate of 3.4%. 

FAQ #6: What’s the minimum wage in New York?

For employers in New York City, the minimum wage is $15/hour in 2022.

If your business is located in Suffolk, Westchester, or Nassau county, the minimum wage is $15/hour for 2022. For all other businesses in New York State the rate is $13.20/hour. 

Fast food workers in New York City must also be paid $15/hr in 2022.

Tipped workers follow a different structure, depending on how big the company is and its location. Keep in mind that, if tipped workers don’t receive enough tips to meet the minimum rate requirement, employers must pay them the minimum wage.

FAQ #7: Do I have to provide disability insurance for my employees? 

New York State requires that employers provide disability insurance coverage for off-the-job injury or illness but you may recover some of the cost from your employees. The New York State Workers’ Compensation Board allows you to deduct 0.5% of wages paid up to a maximum of 60 cents per week per employee. 

FAQ #8: And is it different from What’s the Paid Family Leave insurance program?

New York State requires that employers provide disability insurance coverage for off-the-job injury or illness but you may recover some of the cost from your employees. The New York State Workers’ Compensation Board allows you to deduct 0.5% of wages paid up to a maximum of 60 cents per week per employee. 

New York State’s Paid Family Leave insurance coverage is required of all employers with one or more employees. The cost of this coverage can be collected from employees through after-tax payroll deductions at a rate of 0.511% of each employee’s gross wages. This rate is for 2022 and the annual maximum you can collect from employees is $423.71. 

FAQ #9: Does New York State require me to report new hires?

Yes, and you’ll need to notify the New York Department of Taxation and Finance within 20 calendar days of when the employee begins work. If you don’t, you may be fined. 

City-specific payroll taxes

FAQ #10: What do I need to know about New York City or Yonkers city income tax?

Employees that reside in New York City are subject to the New York City income tax. Form IT-2104 will help you determine how much city income tax to withhold. This form will also help you with withholding the Yonkers city income tax for employees that reside in Yonkers. 

These two taxes are withheld from employees that reside in either city. However, you’ll send the tax to the State of New York when you remit your state income taxes. 

FAQ #12: I’ve heard about the metropolitan commuter transportation mobility tax (MCTMT).  What’s this tax and who pays it?

The MCTMT is collected to pay for the trains, ferries, bridges, tunnels, and subways that serve the New York City metro area.

With some exceptions, This tax is paid by employers with quarterly payroll expenses for covered employees that exceed $312,500 and that engage in business within the following counties:

  • New York (Manhattan) 
  • Bronx 
  • Kings (Brooklyn) 
  • Queens 
  • Richmond (Staten Island) 
  • Rockland 
  • Nassau 
  • Suffolk 
  • Orange 
  • Putnam 
  • Dutchess 
  • Westchester

Rates for 2022 range between 0.11% and 0.34% and are based on your quarterly payroll expenses. 

Using an automated payroll system can help you keep track of these different taxes.

FAQ #13: Is it mandatory that I provide sick leave to my employees?

New York City’s Earned Safe and Sick Time Act requires all employers located in the Big Apple to provide safe and sick time to employees. Whether this time is paid or unpaid depends on how many employees you have. If you have five or more employees, you must provide up to 40 hours of paid sick leave each year. Employers with less than five employees must provide up to 40 hours of unpaid sick leave. Sick leave is accrued at the rate of one hour per every 30 hours worked.

If you need more assistance, an experienced accountant can help you find your way through the New York State payroll tax jungle.

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