New York Pay Stub Compliance for Employers
Operating a business in New York entails essential considerations before issuing pay stubs to employees and contractors.
This overview delves into the pertinent laws and regulations governing payroll management and the dispensation of pay stubs for employers in the state.
Pay stub regulations in New York
1. Are pay stubs required by law in New York?
Employers in New York must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in New York?
You will need to pay your employees at least weekly or semimonthly (upon approval). As pay stubs are mandatory in New York, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in New York?
The following information can be included in employee pay stubs:
- Employee and employer information
- Pay period date
- Type of payment (hourly, salary, commission, etc)
- Rate of payment (regular rate and overtime rate)
- Deductions and allowances
4. Does New York have a state income tax?
Yes, state income taxes are applicable to employees in the state of New York.
5. Are there any other taxes applicable to New York?
Yes. New York City and Yonkers have local payroll taxes.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's exemption status from state withholding
- Employee's applicable status for SDI and paid family leave insurance
- Information such as filing status, additional withholding amount for NYC and Yonkers, total allowances for NYC, and additional state withholding.
New York wage and hour laws
Employers in New York are obligated to comply with wage and hour regulations, which encompass ensuring that non-exempt employees receive minimum wage, appropriate compensation for overtime, adequate meal and rest breaks, and accrued paid time-off benefits.
These regulations cover a wide range of employment law aspects.
New York Minimum wage
In New York, employers are mandated by law to provide workers with at least the minimum hourly wage, adhering to legal standards. The Basic Minimum Rate per hour is $15.00 statewide, with exceptions in specific areas such as New York City, Nassau County, Suffolk County, and Westchester County, where it is $16.00 for the year 2024.
Overtime pay
In accordance with New York Labor Law, overtime pay is designated as one and a half times the regular rate of pay for hours worked beyond 40 in a work week. While nearly all workers are eligible for overtime pay, there are specific exceptions outlined in the law.
Meal break
Employers in New York State are required to grant all employees time off for meals after they have worked a specific duration of hours. Typically, employers must offer a minimum of 30 minutes of unpaid meal break if an employee works more than 6 hours. Additionally, all workers are entitled to an extra 20-minute meal break between 5:00 p.m. and 7:00 p.m. for workdays that span from before 11:00 a.m. to after 7:00 p.m.
Rest break
In New York State, employers are mandated to afford specific employees with a minimum of 24 consecutive hours of rest within each calendar week.
Paid time off and leave
Employers in New York are required to provide employees with both compulsory and optional leave benefits.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
| Employees have the entitlement to receive a 12-week period of paid family leave. | Jury leave-Employers with over 10 employees must compensate the employee at a minimum of $40.00 per day for the initial 3 days of jury service. | Vacation leave |
| Family Military leave- Employers with a workforce of 20 or more individuals must provide employees with an unpaid leave of absence lasting up to 10 days. | Military leave | Bereavement leave |
| Voting leave-Upto 2 hours | Witness leave | Holiday leave |
| Crime Victim | ||
New York State payroll taxes 2024
In New York, payroll taxes are classified as:
- New York Personal Income Tax(PIT)
- New York State Unemployment Insurance (UI)
- New York State Disability Insurance ( SDI)
- New York Paid Family and Medical Leave (PFML)
New York Personal Income Tax(PIT)
In New York, state personal income tax rates vary according to an individual's filing status and income level, which may include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
For Taxable Year 2024 in New York, individual income tax rates are structured across the following brackets: 4.00%, 4.50%, 5.25%, 5.50%, 6.00%, 6.85%, 9.65%, 10.30%, and 10.90%.
New York State Unemployment Insurance (UI)
The State Unemployment Tax Act (SUTA) in New York serves the purpose of extending support to unemployed individuals through the provision of unemployment benefits. This legislation grants authority to the state to collect funds required for distributing unemployment insurance benefits to eligible individuals facing unemployment.
In New York, for the year 2024, State Unemployment Tax Act (SUTA) rates exhibit a range from the lowest rate of 2.1% to the highest rate of 9.9%.
New employers are typically subjected to a rate of 4.1% in 2024.
Additionally, the taxable wage for 2024 is set at $12,500.
New York State Disability Insurance (SDI)
In New York, employers are mandated to offer disability benefits coverage to employees for off-the-job injuries or illnesses. This coverage can be acquired through an authorized disability benefits insurance carrier approved by the New York State Department of Financial Services. Large employers have the option to self-insure with authorization from the Board.
Costs may be fully covered by the employer or shared with the employee. Employee portion may not exceed 0.5% of the first $120/week capped at $0.60/week
New York Paid Family and Medical Leave (PFML)
New York State Paid Family Leave offers eligible employees up to 12 weeks of paid, job-protected leave for bonding with a new child, caring for a seriously ill family member, or aiding a family member deployed on active military duty abroad. This leave can be taken consecutively or in full-day increments.
In 2024, employees will contribute 0.373% of their gross wages per pay period, with a maximum annual contribution of $333.25.
New York payroll tax filing
- Report of New hire Employees
- Report of New hire Independent Contractors
- New York Quarterly Combined Withholding, Wage Reporting, And Unemployment Insurance Return (NYS-45)
- New York Personal income tax filing
Report of New hire Employees
Employers are mandated to report newly hired or rehired employees destined to work in New York State within 20 calendar days from the commencement of employment. This reporting requirement utilizes Form W-4 for submission.
Report of New hire Independent Contractors
Employers are obligated to report individuals under an independent contractor arrangement with contracts exceeding $2,500 through the New York New Hire Online Reporting Center.
How to report employees' and independent contractors' new hire in New York?
You have the option to choose from various methods available for reporting new hires.
| Online | Fax | |
|---|---|---|
| Employees and independent contractors New Hire Report | Address Information: New York State Department of Tax and Finance, New Hire Notification P.O. Box 15119 Albany, NY 12212 Public Phone: 518-320-1079 | Fax 1: 518-320-1080 |
New York Quarterly Combined Withholding, Wage Reporting, And Unemployment Insurance Return (NYS-45)
Every calendar quarter, responsible employers must report their payroll and remit unemployment insurance contributions as mandated by law. This process is conducted through the Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (Form NYS-45), which is required to be submitted electronically. This obligation remains applicable regardless of whether the wages are subject to contributions or withholding under the Personal Income Tax Law.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
New York Personal income tax filing
The Tax Department and the IRS initiate the processing of income tax returns on Monday, January 29, 2024. The deadline for filing returns, paying any owed tax, or requesting an extension of time to file is midnight on April 15, 2024.
Taxpayers are encouraged by the Department to consider utilizing Free File software accessible on the Tax Department website at www.tax.ny.gov (search: free).
Residents are required to utilize Form IT-201, while nonresidents or part-year residents, if obligated to file a New York State return, should use Form IT-203.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and New York state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs, you can paystub generator allows you to swiftly generate pay stubs for both employees and independent contractors, ensuring precise calculations for federal and New York state taxes. In just under 2 minutes, you can have accurate pay stubs ready for distribution.
basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 10, 2024.