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New company registration in New York

New York tax agencies

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

Income withholding and unemployment tax

  1. Register for both income withholding and unemployment tax online at the New York Department of Labor website
    • You'll come across a section called Agent C/O Address which will ask if you would like UI-related mail to be directed to your payroll provider—select No.
    • If you are a Non-Profit Organization, complete a NYS-100N form here.
  2. Heads up—once you're registered with the New York Department of Labor, you'll also be registered for the New York Department of Taxation and Finance.
  3. Enter your New York State Identification Number (used for state income tax withholding) in the Company details section of your Gusto account.
    • Your New York State Identification Number is your Federal Employer Identification Number (EIN) followed by a location code (if applicable to your business). 
  4. Enter your UI Employer Registration Number in the Company details section of your Gusto account.
    • The UI tax number will be a 7 or 8-digit account number.
      • If you have a 7-digit number, enter the number using a dash: ##-#####
    • Do not enter the re-employment services fund or the total UI rate into Gusto, we'll add the re-employment services rate to your experience rate for you. As an 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

You should receive your numbers in 7-10 days after registering online. Click here to view state-by-state new employer rates and wage bases.

Enter your PrompTax access code in Gusto

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 register 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 will receive a 6-digit access code. We require you to enter this access code in the Company details section of your Gusto account so we can successfully file and pay your taxes.

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

If you need any help obtaining your 6-digit access code, contact the NY PrompTax Customer Service Center at (518) 457-2332.

Other New York local taxes

New York City imposes local taxes based on where employees live, and local taxes in Yonkers are based on where the employee lives and works. These local taxes are paid to the State of New York.

Metropolitan commuter transportation mobility tax (MCTMT)

The Metropolitan commuter transportation mobility tax is a percent of payroll tax that is based on the gross wages paid to employees working within the metropolitan commuter transportation district (MCTD). The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. At the end of each quarter we ensure that based on the total wages paid in the previous quarter, you are in the correct rate tier.

To determine which employees are subject to MCTMT, consult the Department of Taxation and Finance website.

All payments made for the MCTMT can be found in the Agency Payments report of your account. 

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). New York allows you to withhold $0.60 per week from your employees to help fund this policy. If you elect for us to deduct, funds will remain in your bank account for you to pay to your SDI insurance provider. At this time, Gusto does not automatically remit payments to your insurance provider.

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 $385.34 annually in 2021 from your employees' wages in order to pay for Family Leave Insurance. If you elect for us to deduct, funds will remain in your bank account for you to pay to your SFLI insurance provider. At this time, Gusto does not automatically remit payments to your insurance provider.

Payroll, benefits, HR and more.