New York Payroll & Paycheck Tax Calculator

Register as an employer through the New York Business Express portal. This covers your Department of Labor State Unemployment Insurance (SUI) account and your New York State Department of Taxation and Finance, which handles state income tax withholding. 

By filling out Form NYS-100, you’ll automatically register your business for withholding. There’s no need to register separately with each department. You’ll need your federal Employee Identification Number (EIN), and in return, you’ll get separate account numbers from NYDOL and NYSDTF.

Skipping the paperwork isn’t an option. You’ll need to file both federal and state forms to stay compliant and pay employees:
• Federal W-4 withholding forms for employee withholding
• New York IT-2104: New York’s version of a W-4, it’s essential for withholding
• Federal forms from the IRS:
• Form 941 (Quarterly federal tax return)
• Form 940 (Federal Unemployment Tax, FUTA)
• W-2 and 1099 (Year-end wage reporting)
• New Hire Reports: Submit to the New York Hire Reporting Center within 20 days of an employee’s start date. 
• Form NYS-45: This is your quarterly combined wage and unemployment insurance report. Use it to report wages and tax withheld to both the Department of Taxation and the Department of Labor using a single form.
New York has more red tape than other states: you’ll not only be withholding state income tax, but possibly New York City or Yonkers taxes, and if payroll exceeds $312,500 per quarter and you’re in the metro area, you’ll also have to pay the Metropolitan Commuter Transportation Mobility Tax (MCTMT), too.

New York’s labor laws vary by region, industry, and job type, which makes payroll a particularly thorny issue in the state. So whether you’re in Buffalo or Brooklyn, you’ll need to know the specifics of wage laws that apply to you, like minimum wage:
• New York City: $16.50/hour
• Long Island and Westchester: $16.50/hour
• Elsewhere in New York State: $15.50/hour
There are also nuances for both tipped service employees and tipped food service employees:

In New York City, Long Island, and Westchester, service employees must earn $13.75/hour with a $2.75 tip credit. In the remainder of New York State, it’s $12.90 with a $2.60 tip credit. Be sure to learn the rules for what kind of service industries and overall duties qualify.

For tipped food service workers, the New York City, Long Island, and Westchester minimum wage is $11.00 with a $5.50 tip credit, and elsewhere in the state, food workers can expect to be paid $10.35 with a $5.15 tip credit. Employers pay these employees less than the minimum wage, but they’ll need to make up the difference in cases of shortfalls.

There’s no daily overtime in New York: overtime wages of 1.5X a worker’s typical pay kick in after working 40 hours/week. New York rules come with a higher income threshold compared to the federal standards: executive and administrative employees in the New York City area making over $1,200 per week ($62,400 annually) are exempt, while those elsewhere in the state need to make $1,124.20 weekly ($58,458.40) to be exempt from overtime pay laws.

New York requires manual workers to be paid weekly, while clerical workers should see paychecks twice a month. Executives, administrators, and professionals may be paid monthly. 

When a worker’s employment ends for whatever reason, they’re entitled to be paid by the following payday. Employers have to mail these final checks if employees request it. Employers can pay terminated employees immediately, but they don’t have to.

The New York State payroll calculator makes it clear — to employers and employees alike — where withholding happens, how much, and what their gross and net pay should look like. New York has a progressive state tax system, meaning employees’ pay rate will impact tax withholdings anywhere up to 10.9%. 

And taxes in New York are also layered, with New York City taxes adding to the burden. Between state income tax brackets, NYC or Yonkers resident taxes, and the Metropolitan Commuter Transportation Mobility Tax (MCTMT) for some employers, calculating accurate paychecks requires a simple solution.

It’s not over until the paperwork is sent to New York State and federal agencies. Once you’ve hired employees, you’ll be responsible for state, federal, and, in New York, possibly also regional payroll reports and payments every month or quarter.

In New York, file:
• Form NYS-45: New York’s quarterly combined wage, withholding, and unemployment report.
• State Income Tax Withholding: Due monthly, quarterly, or annually, depending on how much you withhold.
• Metropolitan Commuter Transportation Mobility Tax (MCTMT): If you’re in the NYC metro area with a quarterly payroll exceeding $312,500, you’ll file and pay this through the NYS Department of Taxation and Finance.
With the IRS, file: 
• Form 941: Quarterly federal payroll tax return
• Form 940: Annual FUTA return
• Form W-2: Sent to employees and the Social Security Administration annually
• Form 1099-NEC: For contractors (plus required NY state copies)