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NYS-50(12/21)Employer’s Guide toUnemployment Insurance,Wage Reporting,and Withholding Tax(Revised December 2021)This booklet contains information on: Employer rights, responsibilities, and filing requirements New York State wage reporting Reporting new or rehired employees New York State unemployment insurance New York State, New York City, and Yonkers income tax withholdingNew York State Department of Taxation and Finance and New York State Department of Labor(Unemployment Insurance Division) addresses and telephone numbers are also included forfurther assistance.For withholding tax tables and methods, see: Publication NYS-50-T-NYS, New York State Withholding Tax Tables and Methods Publication NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods Publication NYS-50-T-NYC, New York City Withholding Tax Tables and MethodsThe information presented is current as of the publication’s print date. Visitthe Department of Taxation and Finance’s website at www.tax.ny.govand the Department of Labor’s website at www.dol.ny.gov for up‑to-dateinformation.
Page 2 of 53NYS-50 (12/21)Highlights of changes and other important informationHow changes to federal Form W-4 affect NYSwithholdingFor tax years 2020 or later, withholding allowances are no longerreported on federal Form W-4, Employees Withholding Certificate.If the federal Form W-4 most recently submitted to an employer was fortax year 2019 or earlier, and the employee did not file Form IT-2104,Employee’s Withholding Allowance Certificate, the employer may usethe same number of allowances claimed on the federal Form W-4.If an employee submits a federal Form W-4 to an employer for taxyear 2020 or later, and the employee does not file Form IT-2104, theemployer may use zero as the number of allowances.Note: Employees should be encouraged to provide Form IT-2104 totheir employers. Failure to provide Form IT-2104 may result in the wrongamount of tax withheld for New York State, New York City, and Yonkers.Changes affecting agricultural employersIn 2019, Governor Cuomo signed the Farm Laborers FairLabor Practices Act. Effective January 1, 2020, agriculturalemployers, and farm crew leaders under certain conditions,are required to provide unemployment insurance coverage fortheir employees. H-2A Foreign Guest Workers are excludedfrom unemployment insurance coverage. For more information,visit actices-act.shtm orcall 1-833-NY-FARMS.Employer responsibility to report misclassifiedemployeesEffective January 1, 2020, when an unreported worker is determinedto be an employee, but more than one business supervises, directs, orcontrols the worker, the business paying the worker is responsible forproviding unemployment insurance coverage and reporting the worker’swages.Note: This does not apply to a payroll agency that only provides payrollservices on behalf of another employer.Withholding from certain gambling winningsFor tax years beginning on or after January 1, 2019, withholding isrequired from any gambling winnings from a wagering transaction withinNew York State if the proceeds from such wager are subject to federalwithholding.For additional information see the UI, wage reporting, and withholdingtax requirements for certain items of income chart, beginning onpage 40.Changes to quarterly wage and withholding reportingrequirementsEffective January 1, 2019, all employers required to fileForm NYS-45, Quarterly Combined Withholding, Wage Reporting, andUnemployment Insurance Return, or Form NYS-45-ATT, QuarterlyCombined Withholding, Wage Reporting, and UnemploymentInsurance Return-Attachment, must provide complete wage andwithholding information (Part C, columns a through e), each calendarquarter, for all employees. Prior to this change, employers were onlyrequired to complete Part C, columns d and e, annually or on the lastreturn filed for the calendar year.For additional information, see section 2, part l, Quarterly wage andwithholding totals, on page 26.Electronic filing mandate for quarterly combinedwithholding, wage reporting, and unemploymentinsurance (UI) return filingsFor returns due on or after April 30, 2015, all quarterly combinedwithholding, wage reporting, and UI returns must be electronically filed,and any balance due with the return must be paid via ACH debit on theTax Department’s website. Filers of paper returns may be subject topenalties and delays in processing.The department offers three methods for electronically filing withholdingtax returns: Tax Department Web File – You can make withholding tax payments,file withholding tax returns, and report wage and UI information. Tax Department Web Upload – The fastest and easiest way to makewithholding tax payments, file returns, and report withholding tax,wage, and UI information. Federal/State Employment Taxes (FSET) compatible software –Some commercially available software allows you to use the FSETprogram to file withholding tax returns and report wage and UIinformation.For additional information, see section 3, Part AA, Electronic (e-file)mandate of quarterly combined withholding, wage, and UI returns onpage 35.Penalties for failing to electronically fileIf you or your preparer are required to file a tax document electronicallyand instead file on paper, you’re subject to the following penalties: a 50 penalty for each tax document not electronically filed; a 50 penalty for failure to pay electronically; and a penalty specific to your tax type for failure to file.In addition, any overpayment claimed on a return that was required to beelectronically filed won’t be eligible to receive interest until the documentis filed electronically.Withholding amounts to deductThe New York State, New York City, and Yonkers withholding tax tablesand methods are revised as needed to reflect tax law updates. To ensureaccuracy in withholding amounts of an employee, employers should usethe withholding tax tables and methods that are in effect for the payrollperiod of the wages. See the Tax Department’s website for the currentwithholding tax tables and methods: NYS-50-T-NYS, New York State Withholding Tax Tables and Methods NYS-50-T-NYC, New York City Withholding Tax Tables and Methods NYS-50-T-Y, Yonkers Withholding Tax Tables and MethodsRecordkeepingEmployers must keep all records of employment taxes for at least4 years. In addition, every employer or withholding agent requiredto withhold state and city taxes, and every person required to fileinformation returns must keep all records of these taxes and informationreturns available for review by the Tax Department. For moreinformation, see section 3, part Z, Records to be kept, on page 35.Misclassification of workers – UnemploymentInsurance (UI)Employee misclassification occurs when an employer either (1) failsto report its employees to the state and pays them “off-the-books” or(2) improperly classifies its workers as independent contractors when theymeet the legal standards for classification as employees. Misclassifyingworkers can have a severe impact on workers and employers in industrieswhere the practice prevails. For employers, it creates an unfair economicadvantage and imposes higher costs on responsible employers. Thismakes them less competitive and more likely to be underbid by businessesthat intentionally misclassify workers. For workers, it affects workingconditions by encouraging unscrupulous employers to ignore laborprotections, such as wage and hour requirements and safety and healthregulations. We need your help to keep the system fair and equitable foreveryone. If you are aware of any employer committing fraud, you mayreport it anonymously by contacting the New York State Department ofLabor, Liability and Determination, Fraud Unit, by any of these methods: Visit New York State Department of Labor’s website at www.dol.ny.gov Call 1-866-435-1499 24 hours a day or 518-485-2144 between8:00 AM and 4:00 PM Fax information to 518-457-0024
NYS-50 (12/21) Report by mail to:NEW YORK STATE DEPARTMENT OF LABORLIABILITY AND DETERMINATION, FRAUD UNITBUILDING 12 ROOM 282W A HARRIMAN CAMPUSALBANY NY 12240New York Business Express website (NYBE)Visit New York’s new comprehensive guide for all your businessand professional needs. Quickly and easily find information relatedto licensing, regulation, incentives, and support to start or growyour business. Business and household employers use NYBE tofile a New York State Employer Registration for UnemploymentInsurance, Withholding, and Wage Reporting. Website:www.businessexpress.ny.gov.New employer registrationNew business and household employers can register forUI, wage reporting, and withholding tax through NYBE atwww.businessexpress.ny.gov. To register an agricultural, non-profit,governmental, or Indian tribe, go to www.dol.ny.gov.Additional information can be obtained by calling the New York StateDepartment of Labor or the New York State Department of Taxation andFinance at the numbers listed below. Department of LaborWebsite: www.dol.ny.govUI registration information:Employer Hotline, toll-free: 1-888-899-8810Telephone assistance is available from 8:00 AM to 5:00 PM(Eastern Time), Monday through Friday Department of Taxation and FinanceWebsite: www.tax.ny.govWithholding Tax Information Center: 518-485-6654Paid family leaveIn 2016, Governor Cuomo signed the nation’s strongest and mostcomprehensive Paid Family Leave policy into law. New York’s PaidFamily Leave program provides employees with job-protected, paid timeoff to bond with a newly born, adopted, or fostered child, care for a familymember with a serious health condition or assist loved ones when afamily member is deployed abroad on active military service. For moreinformation, visit paidfamilyleave.ny.gov or call the Paid Family LeaveHelpline for assistance at 844-337-6303.Changes to sexual harassment lawsIn 2018, New York State updated laws to include new requirements forevery employer in the state related to combating sexual harassmentin the workplace. The Human Rights Law now protects contractors,subcontractors, vendors, consultants or others providing services inthe workplace from sexual harassment in the workplace. In addition,employers must adopt a sexual harassment prevention policy andtraining or use a similar policy and training that meet or exceed the law’sminimum standards. Effective January 2019, all state contractors mustsubmit an affirmation that they have a sexual harassment policy andprovide annual training to all of their employees. Finalized guidancematerials, along with a step-by-step toolkit for employers, are availableonline: rkplace.Thank you for your continued commitment to ending sexual harassmentin the workplace.Online services for employersThe New York State Department of Labor’s website (www.dol.ny.gov)Employer Overview page contains several features for employers:Registered employers can use the online services portal to: View their Unemployment Insurance Employer Information Page Apply for Shared Work Enroll in SIDES E-Response to respond electronically to requests forunemployment insurance informationPage 3 of 53 File Form NYS 45, Quarterly Combined Withholding, Wage Reportingand Unemployment Insurance Return Upload a Wage Reporting File File Form NYS-1, Return of Tax Withheld Report a change of address online Assign an Online Services Filing RepresentativeMetropolitan commuter transportation mobility tax(MCTMT) for employersCertain employers that have payroll expense within the MetropolitanCommuter Transportation District (MCTD) are liable for the MCTMT for acalendar quarter if they are required to withhold New York State incometax from wages paid to employees and their payroll expense for allcovered employees is more than 312,500 for that calendar quarter.The MCTD includes New York City (the counties of New York(Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (StatenIsland)), and the counties of Rockland, Nassau, Suffolk, Orange,Putnam, Dutchess, and Westchester.For more information on the MCTMT, see Publication 420, Guide tothe Metropolitan Commuter Transportation Mobility Tax, or the TaxDepartment’s website.
Page 4 of 53NYS-50 (12/21)Table of contents1. Labor Department –Unemployment Insurance ProgramA. Preface. 6Confidentiality of UI information . 6B. Employment. 6Covered employment . 6State of jurisdiction . 6Maritime service . 6Noncovered employment. 6 - 7Independent contractors . 7New York State Construction Industry Fair Play Act. 7New York State Commercial Goods TransportationIndustry Fair Play Act. 7 - 8Students. 8Covered and excluded employment . 9 - 11C. Who is an employer?.Employer types.Liable employers.Conditions for liability.Voluntary coverage.Termination of liability.111112121212D. Rights and responsibilities of a liable employer. 12Employer registration number. 12Display of poster. 13Record-keeping requirements. 13Reporting requirements. 13Quarterly filing due dates. 13Seasonal employers. 13Combined reporting. 13Annual wage base. 13 - 14Reporting tips and meals. 14Payments to employees not reportable. 14Annual reports. 14Enforcement. 14 - 15Additional assessment for fraud. 15Re-employment service fund . 15Interest assessment surcharge . 15Deductions from an employee’s pay. 15Refunds and credits. 15Benefit reimbursement option. 15The relationship of New York State and federalunemployment insurance reporting. 15 - 16Maintaining accurate business information. 16Notice to employees leaving the job. 16Benefit payments. 16Hearings and appeals. 16E. How are UI rates computed?. 16Normal rate . 16Subsidiary rate. 16Re-employment service fund . 16Experience rating. 16Account balance. 16 - 17Account percentage . 17Benefit equalization factor. 17Size of fund index. 17UI rate notification . 17Qualified employer. 17Transfer of experience . 17Newly liable employer. 17Nonpayment of remuneration. 17Reporting delinquency. 18Voluntary contributions. 18Joint accounts. 18UI rate tables:Normal unemployment insurance rates. 19 - 20Subsidiary rates. 21F. Controlling unemployment insurance costs.Accurate and timely reporting and payment.Review of notice of benefit entitlement or payment.Sign up for SIDES .Fraud control .Shared work.212121212122G. Unemployment insurance benefits. 22Rules for receiving unemployment benefits. 22Employment and earnings requirement. 22Conditions that affect eligibility for benefits. 22How much can a jobless worker receive?. 22 - 23Providing information about benefit claims. 23Charging of benefits. 23Charging formula. 23Notification of charges. 23 - 24Exceptions to the general charging formula. 24Recalculation of experience rating charges. 24Effect of charges on UI rates. 242. Tax Department –Wage reporting information and instructionsA. Purpose. 25B. Employer for wage reporting purposes . 25C. Liable employer. 25D. Employers of household help. 25E. Employees who must be included in wage reports . 25F. Employment . 25G. Gross wages for purposes of wage reporting. 25 - 26H. Electronic (e-file) mandate for reporting wageinformation. 26I. Quarterly wage and withholding totals. 263. Tax Department –Withholding information and instructionsA. Purpose. 27B. Employer for withholding purposes . 27C. New York State employer’s identification number. 27D. Personal responsibility . 27E. Income subject to withholding. 27F. New York State resident employees . 27G. New York City resident employees . 27 - 28H. Yonkers resident employees . 28I. New York State nonresident employees . 28Services performed partly in New York State . 28J. Yonkers nonresident employees . 28Services performed in Yonkers by a nonresidentof Yonkers. 28Services performed partly in Yonkers . 28 - 29Earnings within Yonkers of less than 3,000. 29
NYS-50 (12/21)K. Form IT-2104.1, New York State, City of New York,and City of Yonkers Certificate of Nonresidence andAllocation of Withholding Tax. 29L. Deferred compensation and compensation fromnonstatutory stock options . 29New York State resident employees. 29New York State nonresident employees. 29Employer’s responsibility for withholding. 29 - 30M. Supplemental wage payments. 30Supplemental wages combined with regular wages. 30Supplemental wages identified separately fromregular wages. 30N. Taxation of employees of interstate carriers as wellas seamen engaged in all types of trade.Interstate rail, motor, and motor private carriers.Interstate air carriers.Withholding requirements for seamen.30303030O. Nonresident alien (non-U.S. resident) employeesentitled to tax treaty benefits. 30P. Determining withholding tax. 30Additional withholding requested on Form IT-2104. 31Income tax withholding from annuities. 31Q. Employee’s withholding allowance certificate . 31R. Voluntary withholding agreements. 31S. Certificate of exemption from withholding. 31T. Submitting certificates to the Tax Department. 32U. Payment of New York State, New York City, andYonkers taxes withheld. 32Filing requirements. 32Payment filing frequency. 32When returns are due . 32 - 33Employees without Social Security numbers (SSN) . 33V. Seasonal employers. 33W. Correcting mistakes in withholding fromthe employee. 33Undercollections. 33Overcollections. 33 - 34X. Payroll reporting or service agencies. 34Y. Statements for employees and annuitants. 34Form W2, Wage and Tax Statement . 34Employer requirements concerning the reporting ofNew York State, New York City, and Yonkers wageson federal Form W-2. 34 - 35Undeliverable forms . 35Z. Records to be kept . 35AA. Electronic (e-file) mandate of quarterly combinedwithholding, wage, and UI returns. 35BB. PrompTax program. 35Page 5 of 534. Labor Department and Tax Department –Filing requirements and related informationSummary of penalties. 37 - 39Important UI, withholding tax,and wage reporting dates. 39UI, wage reporting, and withholding tax requirementsfor certain items of income (chart). 40 - 445. Tax Department –New hire reporting requirements.6. Need help?45Need help section for New York State Department of Taxationand Finance, New York State Department of Labor, New YorkState Insurance Fund, Internal Revenue Service, and U.S.Bureau of Citizenship and Immigration Services. 46Unemployment insurance issues – Where can Ifind the answers?. 47 - 48Telephone claims center (TCC). 48New York State Department of Labor, Division ofEmployment and Workforce Solutions . 48Unemployment insurance fraud investigation offices. 49Unemployment insurance employer services offices. 49New York State withholding tax, wage reporting, andUI forms. 50 - 51Unemployment insurance publications.52Pamphlet order form . 52
Page 6 of 53NYS-50 (12/21)1. Labor Department – Unemployment Insurance ProgramA. PrefaceThe New York State Unemployment Insurance Program, administeredby the New York State Department of Labor and financed by employers,provides immediate, short-term financial protection for people who areout of work through no fault of their own. This section is designed toprovide general information on the program and your role in ensuringthat it functions efficiently. Here you will find information on: What constitutes employment under the Unemployment Insurance(UI) Law Who is an employer Record‑keeping requirements Reporting requirements Your right to a hearing on UI determinations How UI rates are computed Controlling UI costs UI benefitsStatements in this section are intended for general information and donot cover all provisions of the UI Law, and do not have the effect of lawor regulation. Refer to the Need help? section beginning on page 46of this booklet for website and mailing addresses, telephone, and faxnumbers to contact for additional information.Confidentiality of UI informationSection 537 of the New York State UI Law provides that UI informationis confidential and cannot be disclosed except under limitedcircumstances. UI information regarding an employer, including wagereporting information used by the Department of Labor in administeringthe UI program, may be requested and utilized for other governmentalpurposes. These purposes include, but are not limited to, verification ofan individual’s eligibility for other government programs.You may review the New York State UI Law (Article 18 of the New YorkState Labor Law) on our website at www.dol.ny.gov.B. EmploymentThe UI Law defines employment as any service, unless specificallyexcluded, performed for compensation under a contract of hire, whetherthe contract is expressed or implied, written or oral, and without regardto whether the service is performed on a part-time, full-time, or casualbasis.Covered employmentEmployees may perform services on or off the employer’s premises orin their own homes. Homeworkers are considered employees under theNew York State Labor Law.Officers of all corporations, including professional, subchapter S andother closely held corporations, who perform services for the corporationare employees of that corporation. Their compensation for theseservices is reportable and subject to contributions. However, membersof a Limited Liability Company (LLC), Limited Liability InvestmentCompany (LLIC), or Limited Liability Trust Company (LLTC) are notconsidered employees and their earnings are not reportable or subject tocontributions. Also, earnings of individual proprietors are not reportableor subject to contributions.Employment specifically covered under the UI Law includes:1. Agent or commission drivers engaged in distributing meat,vegetables, fruit or bakery products; beverages (other than milk);laundry or dry cleaning services.2. Traveling or city salespersons who work full-time soliciting ordersfor merchandise for resale or use in the purchaser’s businessoperations.3. Professional musicians or persons otherwise engaged in theperforming arts, who perform services as such for a television orradio station or network, a film production, a theater, hotel, restaurant,nightclub or similar establishment unless, by written contract, suchmusicians or persons are stipulated to be employees of anotheremployer.4. Professional models who perform modeling services for, orwho consent in writing to transfer use of their name or likeness forpurposes of advertising or trade to, a person or entity that dictatesassignments, hours of work or performance location and thatcompensates them, in return for a waiver of their privacy rights,unless the services are performed under a written contract that statesthe model is an employee of another covered employer.5. Fellow, resident, and intern physicians who perform services for ahealth care facility, including academic medical centers.State of jurisdictionGenerally, employees who work entirely within New York State arecovered under New York State’s UI Law, and all of their earnings mustbe reported to New York State. However, in instances where only part ofan employee’s services are performed in New York State, it is neces
Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (Revised December 2
