Withholding
Withholding requirements
Employers must complete the Form IT-2104, New York’s Employee Withholding Certificate.
Supplemental rate
- New York State: 11.7%
- New York City: 4.25%
- Federal: 22%
State Unemployment Insurance (SUI)
Wage base
$12,800
Contributions
-
- Lowest rate: 2.1% (includes 0.075% for the Re-employment Services Fund or RSF)
- New employer rate: 4.1% (includes RSF)
- Highest rate: 9.9%
- RSF Rate:
- Fixed at 0.075% for all employers
- Normal Contribution Rate:
- For most employers: 3.4% (excluding RSF)
More information
Labor
Minimum wage
$16.50
Termination Pay
- Final Paycheck Rule:
If an employee is terminated or quits, they must be paid by the next scheduled payday for the pay period in which they were terminated. - Additional Requirements:
- Employers must provide written notice of termination within 5 business days.
- Must inform employees about cancellation of benefits.
- Must provide Form IA 12.3 to help with unemployment claims.
- COBRA or state continuation of health coverage may apply depending on company size.
More information
Minimum Wage in New York (2025)
- New York City, Long Island, Westchester:
- $16.50/hour
- Rest of New York State:
- $15.50/hour
Exceptions & Special Cases
- Tipped Workers (Hospitality only):
- NYC/LI/WC:
- Tipped Food Service: $11.00 cash wage + $5.50 tip credit
- Tipped Service Employees: $13.75 cash wage + $2.75 tip credit
- Rest of NY:
- Tipped Food Service: $10.35 cash wage + $5.15 tip credit
- Tipped Service Employees: $12.90 cash wage + $2.60 tip credit
- NYC/LI/WC:
New Hire Filing
Reporting deadline
Within 20 days of employee hiring, rehiring, or returning to work.
Reporting online
Reporting by mail
New York Department of Taxation and Finance
New Hire Notification
P.O. Box 15119
Albany, NY 12212-5119
Fax: 518-320-1080
New hire reporting form
Child Support
Online payments
More information
Other
New employer registration
Local taxes
Waterfront Employers (NY/NJ):
Employers operating on the New York/New Jersey waterfront may be subject to a 1.98% local payroll tax, though this is specific to certain port authorities and union agreements. This rate is not universally applied and should be verified based on your location and industry.
Metropolitan Commuter Transportation Mobility Tax (MCTMT):
Applies to employers with payroll expenses over $312,500 in the Metropolitan Commuter Transportation District (MCTD).
Rates vary by zone and payroll size:
Zone 1 (NYC boroughs): Up to 0.895%
Zone 2 (suburban counties): Up to 0.635%
Local government employers in Zone 2 are exempt
Reciprocal states
N/A
Disability insurance
Employers may deduct up to 0.5% of an employee’s wages, capped at $0.60 per week.
Alternatively, employers may choose to cover the cost themselves.
Maximum annual employee contribution: $31.20
Benefits: Up to $170/week for 26 weeks
Helpful links
Last Updated
09/25/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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