New York registration and tax info

Before you can pay employees, make sure you've registered for payroll in their applicable work state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account info required to pay them. Learn more about paying your first employee in a new state by watching this quick tutorial.

Gusto partners with CorpNet to help you register in the state—learn more below.

Click Register with NY agencies on your own or Find account numbers and rate info (if you're already registered) to learn more about:

Registering and entering the tax account info in Gusto.
Finding your tax account number(s) and rates and entering them in Gusto.
Required insurance in the state—disability insurance (SDI), family leave insurance (SFLI), and workers' comp.
The local metropolitan commuter tax and START-UP NY program.

Payroll blocked?

Check out our payroll blocked troubleshooting tips article.

Use the dropdowns below to learn more about a topic, or use CMD + F (or CTRL + F) to search for keywords throughout the article.

Let us register for you

Gusto partners with CorpNet to help you register your business in new states.

How it works

Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.

Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.

Here’s a snapshot of the process:

We’ll collect some basic business information from you.
Gusto and CorpNet will check the information for accuracy.
Your registration application(s) are usually submitted within 3-5 business days.
Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.

CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.

Important reminder: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.

Get started with state tax registration

Sign in to Gusto as an admin.
Click the Taxes & compliance section and select Tax setup.
Under “[State name] Tax Setup”, click Have us register for you.
- The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
Review the price, process, and estimated timeline to completion.
- We will not charge you the registration service fee until you send us your order.
Click Continue.
Answer a couple eligibility questions.
- Note: Gusto can only register for you if you don't yet have a state account already.
Click Save & continue.
Enter some company information.
- We’ll pre-populate the information we already have.
Click Save & continue.
Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
- If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
Click Save & continue.
Enter some state-specific operational information.
Click Save and continue.
Review all information thoroughly–if any information is incorrect, it may delay the process.
- Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
Click Send registration order.

After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.

Check the status of your order

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:

Reviewing registration details
Any other state-specific instructions

Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.

You can also check the status in your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.

Cancel your order

If your order is still in progress, you can cancel from your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.
On the right-side of the page, under "Changed your mind?", click Cancel your order.
Let us know why you're canceling.
Click Cancel your order.

If you were already charged, you'll automatically receive a refund within a few business days.

FAQs

Q: Can I run payroll for my employees before my registration is complete?

A: In most cases, you can run payroll before all state tax information is added in Gusto. As long as the info that is immediately required is completed—typically your tax rate(s) and deposit frequency—you'll be able to run payroll.

Important reminders

Until we have all tax account numbers, we're unable to submit payments and filings on your behalf.
If you run payroll before you've completed registration with the necessary agencies and entered the info in Gusto, you may get agency-notices as a result of late tax payments/filings.
- Any penalty or interest that may occur is the company's responsibility to pay.

If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.

Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet, or if the business is undergoing a merger or acquisition?

A: No–you must have a FEIN entered in Gusto to order a state tax registration.

If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.

Q: Where can I see all my tax information?

A: You can see all tax details in the following locations:

Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
CorpNet–create a CorpNet account and login at any time to review information.
State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.
Some agencies issue tax details by mail. If this is the case, CorpNet will notify you, and you'll need to enter this information into Gusto directly.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?

A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:

Use today’s date as the first date the employee(s) in the new state will be paid.
Enter the start date of the quarter you expect the employee(s) to first make $1500.

Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?

A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.

Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.

Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto any required third-party access (TPA) needed to file and pay taxes?

A: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.

Q: Does CorpNet help with state tax account closures?

A: No—you'll need to close the tax account on your own.

Click the dropdowns below to learn how to register with state and local agencies.

New York tax agencies

New York Department of Taxation and Finance - income tax withholding
New York Department of Labor - unemployment tax

Withholding and unemployment account registration—income and unemployment tax (includes PrompTax info)

Head to the New York Department of Labor website to register for both income withholding and unemployment tax.
- If you're a non-profit organization: complete a NYS-100N form here instead.
When you come across a section called "Agent C/O Address", it'll ask if you'd like unemployment-related mail to be sent to your payroll provider—select No.
- Heads up: once you're registered with the New York Department of Labor, you'll also be registered with the New York Department of Taxation and Finance.

You should receive your account numbers and company-assigned rate(s) in 7-10 business days after registering online.

Enter the tax account information in Gusto

Once a valid New York work address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "New York Tax Setup" headline and select Manage taxes.
For your New York State Identification Number, Gusto will use your Federal Employer Identification Number (FEIN). For the last two digits, you can enter "00" as your NYS Suffix.
- If you need to update your account number, contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
Enter your UI Employer Registration Number assigned by the Department of Labor—on the New York Business Express site, this may be called an ER-#.
- If you have a 7-digit number, enter the number using a dash after the second digit: ##-#####.
- If you have an 8-digit number, enter the number in the following format: ##-##### #.
- If you need to update your account number: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
Enter your UI Rate—if you haven't received your rate yet, you can enter the state-specific "new employer rate" in the interim. Click here to view state-by-state new employer rates.
- Do not enter the "Re-employment services fund" or the "Total UI rate" into Gusto, we'll automatically add the re-employment services rate to your experience rate for you. For example:
  - If your total rate is 3.2%, here's what you enter in Gusto:
    - Your UI Rate = 3.125%
      - Enter this rate in Gusto
    - Your re-employment services fund rate = 0.075%
      - Do not enter this into Gusto—we'll add this to your rate for you.
    - Total Rate = 3.2%
      - Do not enter the total rate in Gusto.
- If you need to update your rate: follow these steps.
Enter your 6-digit PrompTax access code in Gusto (if applicable)—we need this code to successfully file and pay your taxes.
- PrompTax is an electronic filing and payment program that is typically required if your aggregate tax withheld for the previous tax year is $100,000 or more. Employers that are required to pay electronically will receive a notice from the New York Department of Taxation and Finance with instructions on how to register for PrompTax.
- Once you've registered your business for PrompTax via Online Services, you will receive a 6-digit access code. Enter this 6-digit access code in Gusto.
  - You may receive a 5-digit PIN when you first register—this is not the same as the 6-digit PromptTax access code and should not be entered in your Gusto account.
- Need help finding your 6-digit PromptTax access code/PIN? Contact the NY PrompTax Customer Service Center at (518) 457-2332.
- If you're already registered for the PrompTax e-payment system, choose ACH Credit as your payment option, and ZenPayroll, Inc. as your payroll provider.

Insurance coverage is required—disability insurance, family leave insurance, and workers' comp

State Disability Insurance (SDI)

New York is one of a few states that require employers to provide disability benefits coverage to employees for an off-the-job injury or illness. They have a state-run program called the New York State Insurance Fund (NYSIF) where you can sign up to provide this policy (Disability Benefits).

You have the option of purchasing coverage with AP Intego if you'd like to do so. AP Intego Disability Insurance is direct bill, meaning you pay the premiums once a year directly to the carrier. However, this is not integrated with Gusto. For more information, reach out to AP Intego directly.

Important

New York allows you to withhold this premium from your employees to help fund this policy—if you elect for Gusto to deduct this amount from your employee's pay, funds will remain in your bank account for you to pay to your SDI insurance provider. A few reminders:

At this time, Gusto does not automatically remit payments to your insurance provider.
We'll only withhold NY SDI on regular payrolls (but not off-cycle or bonus payrolls).

Set up withholding deductions for SDI in Gusto

You can set up deductions for the New York State Disability Insurance (SDI) in Gusto with these steps:

Head to the Taxes & compliance section and select Tax setup.
Scroll down to the New York (NY) setup section.
Click Manage Taxes.
Find the "State disability insurance (SDI): Who will cover the cost—your company or your employees?" option and click Edit.
- If you choose "My employees will pay for SDI"
  - We'll deduct $0.60/week from your employees’ paychecks to cover the insurance cost.
  - You'll need to pay the insurance outside of Gusto—the amounts withheld from employee's paychecks will remain in your company's bank account.
- If you choose "The company will pay for SDI”:
  - We will not deduct anything from the employee's pay.
  - The company will be responsible for covering the employee's portion of the insurance premium.

State family leave insurance (SFLI)

New York is one of a few states that require employers to provide family leave benefits coverage to employees for qualified leave. Employers should contact their current SDI carrier to learn more about adding Paid Family Leave coverage.

You can choose to deduct up to the annual limit from your employees' wages to pay for Family Leave Insurance. If you elect for Gusto to deduct the amount(s), the funds will remain in your bank account for you to pay to your SFLI insurance provider.

A few reminders:

The annual limit is subject to change each year.
At this time, Gusto does not automatically remit payments to your insurance provider.
We'll only withhold NY SFLI on regular payrolls (but not off-cycle or bonus payrolls).

Workers’ compensation

Workers’ Compensation insurance is mandatory for most employers of one or more employees in New York. You can obtain coverage through the New York State Workers' Compensation Board (WCB), or you can go through a private insurance agent or broker that is licensed in New York, such as our partner AP Intego (now part of NEXT Insurance) who offer policies integrated directly with Gusto.

Local tax registration—metropolitan commuter tax (MCTMT) and START-UP NY program

Local taxes are paid to the State of New York.

New York City imposes local taxes based on where employees live.
Yonkers imposes local taxes based on where the employee lives and works.

Learn more below about some of the local taxes and programs you may encounter.

Metropolitan commuter transportation mobility tax (MCTMT)

The metropolitan commuter transportation mobility tax (MCTMT) is a percent of payroll tax that is based on the gross wages paid to employees working within the metropolitan commuter transportation district (MCTD).

Learn more about which employees are subject to this on the Department of Taxation and Finance website. Gusto uses employees' work address to determine liability and withhold the tax—if the tax is being withheld for an employee who you've confirmed is exempt, you can add an employee tax exemption for them.

The MCTD includes the counties of:

New York (Manhattan)
Bronx
Kings (Brooklyn)
Queens
Richmond (Staten Island)
Rockland
Nassau
Suffolk
Orange
Putnam
Dutchess
Westchester

Let us know if you’ve paid MCTMT in the past

When onboarding your first employee in New York, you’ll be prompted to let us know if you've paid MCTMT in the past.

If you’ve paid MCTMT in the past: Mark Yes and enter the tax rate—you can get this from a previous provider, or use this agency resource to help.
- Gusto will debit at this tax rate on every payroll for each employee subject to MCTMT.
If this is your first time being subject to this tax: Mark No.
- We don’t know your rate if you haven’t paid MCTMT before, so we won’t apply this tax for the first quarter. After that, we’ll determine your rate based on the total wages paid for the quarter.
  - If your payroll expenses exceed the threshold in the first quarter and MCTMT is owed, we’ll collect this through a tax reconciliation payroll processed at the end of the quarter.
- Once we’ve established your tax rate, we’ll debit at this tax rate on every payroll for each employee subject to MCTMT.

Gusto uses employees' work address to determine liability and withhold the tax—if the tax is being withheld for an employee who you've confirmed is exempt, you can add an employee tax exemption for them.

Payments and reporting

We'll report subject wages on the Employer's Quarterly Metropolitan Transit Tax Form (MTA-305), which can be found in your Documents tab in the quarterly package.

Agency payments made for the MCTMT can be found by running an “Agency Payments” report from the Reports section of your admin account.

START-UP New York tax program

START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State. Learn more about the program’s regulations and responsibilities.

At this time, Gusto does not formally support the START-UP NY program—however, this program can impact MCTMT payments and filings, so it’s important to contact us if you apply for the program.

If your employee is eligible for this program and chooses to exempt their wages, contact us so we can make sure your account details and filings are set up correctly.

Find account numbers and rate info (if you're already registered)

If you've already registered in the state, you'll need to enter your tax account details in Gusto in order to pay employees.

You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:

New York Department of Taxation and Finance - income tax withholding
New York Department of Labor - unemployment tax
Local New York tax agencies - various

If you still need to register, click the applicable dropdown above in this article.

Find your withholding tax account number

If you've run payroll in New York in the past, your New York State Identification Number (for income tax withholding) will be your FEIN followed by a 2-digit location code.

The location code is typically "00" unless you have multiple business locations.

Learn where to enter this information in Gusto by clicking the applicable dropdown below. If you need to update your account number, contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Find your unemployment account number, rate, and PrompTax code

Employer Registration Number

You can find your unemployment Employer Registration Number from the Department of Labor on:

Form NYS-45; your previous quarterly return(s).
- If you have a 7-digit number, enter the number using a dash after the second digit: ##-#####.
- If you have an 8-digit number, enter the number in the following format: ##-##### #.

If you use the New York Business Express site, the account number may be called an ER-#.

Learn where to enter this information in Gusto by clicking the applicable dropdown below. If you need to update your account number, contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Unemployment tax rate (contribution rate)

Your UI contribution rate appears on:

Form IA 97; the Notice of Unemployment Insurance Rate that you receive from the New York Department of Labor each year.
- When entering your "UI Contribution Rate" in Gusto, do not enter the "Re-employment services fund" or the "Total UI rate", we'll automatically add the re-employment services rate to your experience rate for you. For example:
  - If your total rate is 3.2%, here's what you enter in Gusto:
- If you need to update your rate: follow these steps.

If you're unsure about your account number or rate, call the agency at (888) 899-8810. Learn where to enter this information in Gusto by clicking the applicable dropdown below.

If you don't have your rate yet and need it to run payroll, you can enter the state-specific "new employer rate" found in this article.

Find your PrompTax 6-digit code

PrompTax is an electronic filing and payment program that is typically required if your aggregate tax withheld for the previous tax year is $100,000 or more. Employers that are required to pay electronically will receive a notice from the New York Department of Taxation and Finance with instructions on how to do this.

When you register your business for PrompTax via Online Services, you'll receive a 6-digit access code.

You may receive a 5-digit PIN upon initial registration—this is not the same as the 6-digit PromptTax access code and should not be entered in your Gusto account.

Need help finding your 6-digit PromptTax access code/PIN? Contact the NY PrompTax Customer Service Center at (518) 457-2332.

If you're already registered for the PrompTax e-payment system, choose ACH Credit as your payment option, and ZenPayroll, Inc. as your payroll provider.

Insurance coverage is required—disability insurance, family medical insurance, and workers' comp

State Disability Insurance (SDI)

Important

At this time, Gusto does not automatically remit payments to your insurance provider.
We'll only withhold NY SDI on regular payrolls (but not off-cycle or bonus payrolls).

Set up withholding deductions for SDI in Gusto

You can set up deductions for the New York State Disability Insurance (SDI) in Gusto with these steps:

Head to the Taxes & compliance section and select Tax setup.
Scroll down to the New York (NY) setup section.
Click Manage Taxes.
Find the "State disability insurance (SDI): Who will cover the cost—your company or your employees?" option and click Edit.
- If you choose "My employees will pay for SDI"
  - We'll deduct $0.60/week from your employees’ paychecks to cover the insurance cost.
  - You'll need to pay the insurance outside of Gusto—the amounts withheld from employee's paychecks will remain in your company's bank account.
- If you choose "The company will pay for SDI”:
  - We will not deduct anything from the employee's pay.
  - The company will be responsible for covering the employee's portion of the insurance premium.

State family leave insurance (SFLI)

A few reminders:

The annual limit is subject to change each year.
At this time, Gusto does not automatically remit payments to your insurance provider.
We'll only withhold NY SFLI on regular payrolls (but not off-cycle or bonus payrolls).

Workers’ compensation

Local tax information—metropolitan commuter tax and START-UP NY program

Local taxes are paid to the State of New York.

New York City imposes local taxes based on where employees live.
Yonkers imposes local taxes based on where the employee lives and works.

Learn more below about some of the local taxes and programs you may encounter.

Metropolitan commuter transportation mobility tax (MCTMT)

Learn more about which employees are subject to this on the Department of Taxation and Finance website. Gusto uses employees' work address to determine liability and withhold the tax—if the tax is being withheld for an employee who you've confirmed is exempt, you can add an employee tax exemption for them.

The MCTD includes the counties of:

New York (Manhattan)
Bronx
Kings (Brooklyn)
Queens
Richmond (Staten Island)
Rockland
Nassau
Suffolk
Orange
Putnam
Dutchess
Westchester

Let us know if you’ve paid MCTMT in the past

When onboarding your first employee in New York, you’ll be prompted to let us know if you've paid MCTMT in the past.

If you’ve paid MCTMT in the past: Mark Yes and enter the tax rate—you can get this from a previous provider, or use this agency resource to help.
- Gusto will debit at this tax rate on every payroll for each employee subject to MCTMT.
If this is your first time being subject to this tax: Mark No.
- We don’t know your rate if you haven’t paid MCTMT before, so we won’t apply this tax for the first quarter. After that, we’ll determine your rate based on the total wages paid for the quarter.
  - If your payroll expenses exceed the threshold in the first quarter and MCTMT is owed, we’ll collect this through a tax reconciliation payroll processed at the end of the quarter.
- Once we’ve established your tax rate, we’ll debit at this tax rate on every payroll for each employee subject to MCTMT.

Payments and reporting

We'll report subject wages on the Employer's Quarterly Metropolitan Transit Tax Form (MTA-305), which can be found in your Documents tab in the quarterly package.

Agency payments made for the MCTMT can be found by running an “Agency Payments” report from the Reports section of your admin account.

START-UP New York tax program

At this time, Gusto does not formally support the START-UP NY program—however, this program can impact MCTMT payments and filings, so it’s important to contact us if you apply for the program.

If your employee is eligible for this program and chooses to exempt their wages, contact us so we can make sure your account details and filings are set up correctly.

Enter the tax account information in Gusto

Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "New York Tax Setup" headline and select Manage taxes.
Enter the applicable account number(s) and rate(s).
- More specific information about how to enter each unique account number or rate can be found above in this article.

Forms we file in New York

Return of Tax Withheld Payment Coupon (NYS-1)*
Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (NYS-45)
Employer's Quarterly Metropolitan Transit Tax Form (MTA-305)
NY New Hire Report

W-2 guidance: Check out the state's website for a breakdown of the W-2 for New York employees.

Where to find the forms available in your account

Head to the Taxes & compliance section and select Tax documents.

Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisk info—only if applicable

Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.

You can confirm tax payments were made by running an agency payments report.

Agency website(s) and contact info

New York State Department of Taxation and Finance (518) 485-6654
New York State Department of Labor (888) 899-8810

Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account.