Employer of Record for New York

Guide to Hiring Employees in New York

Your guide to hiring employees in New York, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in New York through Playroll.

Famous Photo Of New York Landmark
Iconic Image Of New York

Capital City

Albany

Timezone

EST

(

GMT-5

)

Paid Leave

None

Income Tax

4% - 10.9%

Employer Tax

∓14.66%

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How to Hire Employees In New York

Hiring in New York for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in New York:

  • Establishing a local entity: Creating a legal entity in New York allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with New York’s labor laws, helping you hire in New York without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet New York’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but New York has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in New York.

Complying with New York specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in New York, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

New York offers access to a diverse and highly skilled workforce, with expertise across industries like finance, technology, media, healthcare, and education. This makes it easier for employers to find qualified candidates, especially for specialized roles.

Even when hiring remotely, New York's strategic location provides businesses with close proximity to major national and international markets. Remote employees in New York can serve clients across the U.S. and abroad with ease, while maintaining the local business connections that come with being based in a global hub.

New York offers various tax incentives, funding programs, and support for remote workers, making it an attractive option for businesses looking to expand. The state's robust infrastructure supports both in-person and remote operations, providing access to high-speed internet, tech hubs, and reliable services.

Key Things to Know About Hiring in New York

In New York, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level.  As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in New York.

Do I Need an EIN or Payroll Tax Number To Employ in New York

Yes, you need an Employer Identification Number (EIN) as well as a Federal Payroll Tax Number to employ individuals in New York

Working Hours in New York

40 hours, with 8-hour shifts for 5 days a week.

What Is Considered Full-Time Employment in New York?

The typical full-time workweek in New York is 40 hours, with 8-hour shifts for 5 days a week.

Probation Period in New York

There are no specific laws mandating probationary periods for employees. The employer can implement this in their employment agreement.

Labour Laws in New York

Minimum Wage in New York

New York City, Long Island and Westchester County: January 1, 2024: $16.00/hour

All Other New York State Counties: January 1, 2024: $15.00/hour

New York Anti-Discrimination Laws

New York’s anti-discrimination laws protect individuals in employment, housing, and public accommodations. 

  • The New York State Human Rights Law prohibits discrimination based on factors like race, gender identity, disability, religion, and more. 
  • The New York City Human Rights Law extends protections against gender discrimination, sexual harassment, and discrimination due to pregnancy or unemployment status. 
  • The New York Equal Pay Act mandates equal pay for equal work, regardless of gender, for employers with more than four employees. 
  • Additionally, the New York State Disability Discrimination Law ensures individuals with disabilities are protected from discrimination in employment and housing.

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Onboarding New Hires in New York

We can help you get your new employee started in New York fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For New York

Common payroll cycles include in New York include weekly, bi-weekly, or semi-monthly and monthly.

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New York Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in New York. Understanding the tax obligations for both employers and employees is crucial when operating in New York's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in New York. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

Employment Tax Type Tax Rate
Federal Social Security Same as federal laws
Federal Medicare Same as federal laws
Federal Unemployment Tax Same as federal laws
New York State Unemployment Insurance Ranges from 1.5% to 9.9%
Disability Benefits Law 0.005
Paid Family Leave 0.00511
Workers' Compensation Insurance Rates vary

Employee Payroll Tax Contributions

Employee Payroll Tax Contribution Tax Rate
Federal Social Security Same as federal laws
Federal Medicare Same as federal laws
Disability Benefits Law 0.005
Paid Family Leave 0.00511

Tax Due Dates in New York

In New York, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.

Pension in New York

Private employers in New York are not required to provide pension plans.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in New York tailored to your needs.

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Paid and Unpaid Leave Policies in New York

Is Vacation Leave Mandatory in New York?

In New York, vacation leave is not mandatory by state law.

What Are Mandatory Leave Entitlements in New York?

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Paid Sick Leave 40 hours Yes Paid All employers in New York are required to provide paid sick leave to employees.
Federal Family and Medical Leave As per federal legislation Yes Unpaid As per federal legislation
Paid Family Leave 12 weeks Yes Paid All private-sector employees who work in New York and have worked for at least 26 weeks (or 175 days) are eligible for Paid Family Leave.
New York State Disability Benefits 26 weeks Yes Partially Paid Employees who are unable to work due to a non-work-related injury or illness.
Jury Duty Trial duration - usually 1 -2 days Yes Unpaid Employee receives a summons for jury duty
Military Leave 30 days Yes Unpaid Employees who are military service members
Military Family Leave 10 days Yes Unpaid Employees who are spouses of active-duty military personnel
Voting Leave 2 hours Yes Paid Employees who do not have time outside of working hours may vote during working hours.
Domestic Violence Leave Reasonable amount of time Yes Unpaid Employees who are victims of domestic violence or sexual assault, or whose family members are victims

Paid Time Off in New York

Employers are not required to provide paid time off for personal reasons beyond sick leave, family leave, and vacation days unless stipulated in the employment contract.

Maternity Leave In New York

In New York, pregnant employees are entitled to several forms of leave:

  1. Family and Medical Leave Act (FMLA): Under federal law, eligible employees can take up to 12 weeks of unpaid leave in a 12-month period for the birth of a child or to care for a newborn.
  2. New York Paid Family Leave (PFL): New York offers 12 weeks of paid leave to employees bonding with a newborn, which includes maternity leave. This benefit provides paid time off to care for a new child, but the leave is capped at 12 weeks per year.
  3. New York Disability Benefits Law (DBL): New York’s DBL provides up to 26 weeks of disability benefits for employees temporarily unable to work due to pregnancy or childbirth. These benefits typically cover 50% of the employee's average weekly wage, but they cannot overlap with the Paid Family Leave (PFL) entitlement.

It’s important to note that FMLA, PFL, and DBL cannot be used simultaneously for the same period

Paternity Leave In New York

Paternity leave is primarily governed by the New York Paid Family Leave program, which allows fathers (and other eligible employees) to take time off to care for a new child, whether through birth, adoption, or foster care placement. Employees can take up to 12 weeks of paid leave within a 12-month period to bond with a new child.

Sick Leave In New York

In New York, employees are entitled to paid sick leave under the state's Paid Sick Leave Law. All private-sector employees in New York City, including part-time and temporary workers, are entitled to paid sick leave. Employees may accrue up to 40 hours of sick leave per year.

Military Leave In New York

Under USERRA, employees are entitled to up to 5 years of military leave and the right to return to their job with the same pay and benefits after service. New York’s Military Leave law provides up to 30 days of unpaid leave per year for military service, with job reinstatement upon return.

Jury Duty In New York

New York law requires employers to provide employees with time off for jury duty without penalizing them. The leave is typically granted for the duration of the employee's service on a jury.

Parental Leave In New York

Parental Leave is governed by the New York State Paid Family Leave (PFL) law, which provides eligible employees with job-protected, paid time off to bond with a newborn, adopted child, or foster child, or to care for a family member with a serious health condition. Employees can take up to 12 weeks of paid leave in a 12-month period to bond with a new child. Employees can receive 67% of their average weekly wage, up to a maximum weekly benefit of $1,231.18.

It’s Easy To Manage Benefits For Employees In New York With Playroll

Benefit Requirements for Employers in New York

Employers are required to comply with both federal and state mandates to ensure their workforce is properly covered.

Are Employers Required To Provide Health Insurance in New York?

According to state legislation,  employers are generally not required to provide health insurance for employees. Under the federal Affordable Care Act (ACA), employers with 50 or more full-time equivalent (FTE) employees are required to offer health insurance to full-time employees.

Do Part-Time Employees Get Benefits in New York?

Part-time employees are not automatically entitled to benefits such as health insurance, paid time off, or retirement plans. Some benefits, like paid sick leave, may apply to part-time employees depending on the employer's policies and the size of the company.

Are Employers Required To Offer 401k in New York?

Employers in New York are not required to offer a 401(k) plan but may need to comply with the NY State Secure Choice program if they have 10 or more employees. Certain businesses with more than 10 employees are required to provide a retirement savings plan or facilitate employees’ participation in the state program.

Employment Termination Protocols in New York

When it comes to terminating employment in New York, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in New York

In New York, the default employment relationship is "at-will," meaning that either the employer or the employee can terminate the relationship at any time, with or without cause, and with or without notice.

Notice Period in New York

New York does not require employers to provide notice of termination.

Severance in New York

Not required by New York law.

Hiring Employees in New York with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like New York's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with New York's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with New York's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with New York's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.

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