New York Payroll, Unique Aspects of New York Payroll Law and Practice

The New York State agency that oversees the collection and reporting of state income taxes deducted from paychecks is:

Tax and Finance Department
New York State Income Tax Office
W.A. Harriman Campus
Albany, New York 12227-0125
(800) 225-5829 (in-state)
http://www.tax.state.ny.us/

New York requires that you use the New York form “IT-2104, Employee’s Withholding Allowance Certificate” or a federal form W-4 for New York state income tax withholding.

Not all states allow salary reductions made under Section 125 or 401(k) cafeteria plans to be treated in the same manner as the IRS code allows. In New York cafeteria plans are not taxable for income tax purposes; taxable for unemployment insurance purposes. 401(k) plan deferrals are not subject to income taxes; taxable for unemployment purposes.

In New York, additional wages are taxed at a flat rate of 8.2%.

It is not necessary to submit W-2 forms in New York.

The New York State Unemployment Insurance Agency is:

Unemployment Insurance Division
State campus, building. 12
Albany, New York 12240
(518) 457-2635
[http://www.labor.state.ny.us/business_ny/unemployment_insurance/unemployment_insurance.html]

The New York State taxable wage base for unemployment purposes is wages up to $8,500.00.

New York requires quarterly wage reporting magnetic media to be reported if the employer has at least 250 employees who are reporting that quarter.

Unemployment records must be kept in New York for a minimum period of three years. This information generally includes: name; Social Security number; hire, retirement and termination dates; wages per period; payroll periods and payment dates; termination date and circumstances.

The New York State agency charged with enforcing state wage and hour laws is:

work Department
Labor Standards Division
State Office Building. Facilities
Building 12, Room 532
Albany, New York 12240
(518) 457-4321
http://www.labor.state.ny.us/

The minimum wage in New York is $5.15 per hour.

The general provision in New York regarding overtime pay at a non-FLSA covered employer is one and one-half times the regular rate after a 40-hour week.

New York State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:

• Name of the employee
• employee address
• Employee Social Security Number
• Name of the employee
• Employee Address
• Employer Federal Employer Identification Number (EIN)

This information must be reported within 20 days of hire or rehire.
Information can be submitted as W4 or equivalent by mail, fax or electronically.
There is a fine of $20.00 for a late report and $450 for conspiracy in New York.

You can contact the New York New Hire Reporting Agency by calling 800-972-1233 or 800-225-5829 or on the web at http://www.tax.state.ny.us/wt/newhire. html

New York does not allow mandatory direct deposit

New York requires the following information on an employee’s pay stub:

• Gross and net earnings
• explanation of salary calculation if requested
• item deductions

New York requires that the employee be paid no less frequently than twice a month; weekly for blue collar workers (bi-weekly if the labor commissioner agrees); less often for FLSA-exempt employees earning more than $600 a week.

New York requires that the time lapse between the end of the pay period and payment of wages to the employee not exceed seven days for manual workers.

New York payroll law requires that involuntarily terminated employees be paid their final pay on the next regular payday (by mail if requested by the employee) and voluntarily terminated employees be paid their final pay on next regular payday or by mail if requested by the employee.

The deceased employee’s wages of $30,000 must be paid within 30 days of death to the designated beneficiary or surviving spouse; $15,000 within 31 days to 6 months for surviving spouse, adult children, parent, sibling, niece or nephew, creditor, or person paying funeral expenses (in that order); $5,000 if more than 6 months after death to distribute, creditor or funeral expenses.

Reversion laws in New York require that unclaimed wages be paid to the state after three years.

The employer is also required in New York to keep a record of wages abandoned and turned over to the state for a period of 5 years (after December 31 of the year in which the report is filed).

New York payroll law requires that no more than $1.85 may be used as a tip credit.

In New York, the payroll laws that cover mandatory breaks or meal breaks are just that all employees must have 30 minutes for the midday meal from 11am to 2pm (60 at the factory); another 20 minutes from 5 pm to 7 pm if the shift starts before 11 am and continues after 7 pm; 45 minutes during shifts of at least 6 hours starting between 1:00 p.m. and 6:00 a.m. (60 in factory).

New York statute requires that wage and hour records be maintained for a period of not less than six years. These records will normally consist of at least the information required under the FLSA.

The New York agency charged with enforcing child support laws and orders is:

Division of Child Support Enforcement
New York State Department of Family Assistance
40 N. Pearl St.
Albany, New York 12243
(518) 474-9081
https://newyorkchildsupport.com/home.html

New York has the following provisions for child support deductions:

• When to start withholding? First pay period after 14 days from service.
• When to send the payment? Within 7 days of payment day.
• When to send a termination notice? “Promptly”
• Maximum administrative fee? no provisions
• Retention limits? Federal Rules under CCPA.

Please note that this article is not updated for changes that may and will occur from time to time.