Updated August 6, 2026 — registration steps, deadlines, and rates below were verified against official New York agency sources in August 2026. Confirm current figures with the agencies before filing.
One form covers most of it: the NYS-100, filed online through New York Business Express, registers you for unemployment insurance, withholding tax, and wage reporting at once.
A general business employer becomes liable for NY unemployment insurance once it pays $300 or more in a calendar quarter, and the state instructs new employers to notify the Department of Labor promptly.
New York uses a combined quarterly return, Form NYS-45, covering withholding, wage reporting, and unemployment insurance, due April 30, July 31, October 31, and January 31, with mandatory e-filing.
Once you accumulate $700 or more in withheld tax, you must remit it on Form NYS-1 within 3 or 5 business days, not quarterly.
Every new hire must be reported within 20 calendar days, and NYC/Yonkers local withholding, the MCTMT, and Paid Family Leave add NY-specific wrinkles most states don't have.
Why New York payroll tax registration comes first
Before a startup can legally run its first payroll in New York, it needs state tax accounts to deposit withheld income tax and pay unemployment insurance contributions. The trigger comes fast: a general business employer becomes liable for New York unemployment insurance once it pays $300 or more in wages in a calendar quarter, and liability applies from the first day of that quarter. The state's employer guide (Publication NYS-50) says an employer who begins hiring in New York "is required to notify the Department of Labor, Unemployment Insurance Division promptly." Practically, registration belongs on the checklist alongside your EIN, before the first paycheck, especially if you're running payroll for the first time.
The accounts you need and who issues them
New York is unusual in that two agencies share one registration. The Department of Labor administers unemployment insurance and assigns each liable employer an eight-digit employer registration number. The Department of Taxation and Finance administers income tax withholding, including New York City and Yonkers local taxes. A single form, the NYS-100, registers a general business employer for unemployment insurance, withholding tax, and wage reporting in one pass.
On the withholding side, you must withhold New York State income tax for residents (even when they work out of state) and for nonresidents paid for work performed in New York. Local withholding stacks on top: New York City resident employees are subject to NYC withholding wherever they work, and Yonkers requires withholding for Yonkers residents plus a nonresident tax on wages for services performed in Yonkers.
Separately, once you have one or more employees on each of at least 30 days in a calendar year, you become a "covered employer" under the Disability Benefits Law and must obtain disability and Paid Family Leave insurance within four weeks following that 30th day. The Workers' Compensation Board oversees this coverage; it's an insurance policy, not a tax account, but startups often miss it.
How to register, step by step
Get a federal EIN from the IRS. New York's registration asks for it.
Gather entity details: legal name, business address, entity type, owner/officer information, and the date you first paid (or will pay) wages in New York.
File the NYS-100 online through New York Business Express, the state's business portal, where "Registration for Unemployment Insurance (NYS 100)" is one of the top requests. Nonprofit, government, and tribal employers must use mail-in variants instead. Details and thresholds are on the Department of Labor's registration page.
Watch for your eight-digit DOL employer registration number and your withholding account setup, then create a Business Online Services account with the Tax Department for e-filing.
Once the accounts exist, most payroll software files these returns and deposits automatically; the registration itself is the part the founder has to do.
Ongoing obligations after you register
New York consolidates quarterly reporting into Form NYS-45, the Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return, due April 30, July 31, October 31, and January 31. E-filing is mandatory and the Tax Department allows no extensions. Full due-date rules are on the withholding tax due dates page.
Withholding deposits follow a $700 rule. If you withhold less than $700 in a quarter, you remit it with the NYS-45. Once accumulated withholding hits $700, you must file Form NYS-1 and pay within 5 business days of that payroll (3 business days once you've withheld $15,000 or more in the year preceding the previous calendar year).
For unemployment insurance, as of August 2026 the new employer normal contribution rate is 3.4%, plus a 0.075% Re-employment Services Fund charge, applied to a taxable wage base of $17,600 per employee (effective January 1, 2026). DOL mails updated rate notices starting mid-February each year.
New hires (and independent contractors with contracts over $2,500) must be reported within 20 calendar days of the hire date via the New York New Hire Online Reporting Center, including name, address, Social Security number, hire date, and whether dependent health coverage is available. Late reports can cost $20 per unreported employee.
Two more New York quirks. Employers in the Metropolitan Commuter Transportation District owe the MCTMT once payroll expense there exceeds $312,500 in a quarter; as of August 2026 rates range from 0.055% to 0.895% in Zone 1 (the five NYC boroughs) and up to 0.635% in Zone 2 (seven suburban counties). See the Tax Department's MCTMT page. And Paid Family Leave is funded by an employee payroll deduction of 0.432% of wages in 2026, capped at $411.91 per employee for the year.
Remote and out-of-state employers
If your startup is headquartered elsewhere but hires someone working in New York, the obligations generally follow the employee. Wages for work performed entirely within New York are covered by New York's unemployment insurance law and reportable to New York, and nonresident wages for services performed in the state are subject to New York withholding. Out-of-state startups register the same way, through New York Business Express, and take on the same NYS-45, new hire reporting, and disability/PFL coverage duties for their New York workers.
FAQ
Do I file separate state returns for withholding and unemployment insurance in New York?
No. New York combines them on Form NYS-45, which covers withholding, wage reporting, and unemployment insurance in a single quarterly e-filed return due the last day of the month after each quarter ends. Withholding deposits above the $700 threshold are made separately on Form NYS-1 between quarterly filings.
Does my startup need to withhold New York City tax?
Only for employees who are New York City residents; their NYC withholding applies even when they work outside the city. Yonkers works similarly for residents, and it also imposes a nonresident tax on wages earned for services performed in Yonkers. Employees working in NYC who live elsewhere are not subject to NYC resident withholding.
When exactly do I have to register?
The Department of Labor instructs new employers to notify it promptly once they begin hiring, and unemployment insurance liability starts the first day of the calendar quarter in which you pay $300 or more in wages. Since new hire reporting is due within 20 calendar days of a hire and withholding starts with the first paycheck, the practical answer is to register before you run payroll at all.