New York payroll taxes for employers (2026)

The New York rules that change your payroll

Three insurance policies, two local taxes and a payday rule set New York apart.

Workers comp, DBL and PFL together

Any for-profit employer with an employee needs workers comp, and that includes part-time, temporary, seasonal, leased and family workers. There is no headcount minimum. The same employers must carry Disability Benefits (DBL) and Paid Family Leave (PFL) coverage. Employees pay up to 0.5% of wages for DBL, capped at $0.60 a week, and you pay the rest of the DBL premium. PFL is employee-funded at 0.432% of wages in 2026, with a $411.91 annual maximum. The DFS had not issued the 2027 PFL decision on October 16, 2026.

New York City and Yonkers withholding

You withhold NYC tax from New York City residents and Yonkers tax from Yonkers residents, along with a 0.50% nonresident earnings tax for people who work in Yonkers. Both go through the state withholding system. Rates and tables are on our NYC and Yonkers withholding page. We have not researched the Metropolitan Commuter Transportation Mobility Tax (MCTMT), so check with the Department of Taxation and Finance if you have staff in the New York City area.

Weekly pay for manual workers

Manual workers must be paid weekly unless the DOL approves semi-monthly pay. Clerical and other workers are paid at least semi-monthly. When someone leaves, fired or quit, the final check is due by the regular payday for that pay period (Labor Law 191(3)), and by mail if they ask.

Supplemental wages are withheld at 11.70% for state tax. The minimum wage is $17.00 in New York City, Long Island and Westchester and $16.00 elsewhere, and it does not rise on January 1, 2027 because an inflation off-ramp was triggered. Other states' rates are in the 2026 minimum wage table.

New York employer payroll facts at a glance

How to register as a New York employer

1. Get an EIN from the IRS.
2. Register for unemployment insurance and withholding. General business employers do this online through New York Business Express (the NYS-100 registration), as the NYS DOL "Register for Unemployment Insurance" page explains. Nonprofit, government and tribal employers use mail-in forms.
3. Buy workers comp, DBL and PFL coverage before the first day of work.
4. Report each new hire to the NYS Department of Taxation and Finance within 20 calendar days of the first day of paid work.
5. Set weekly paydays for manual workers and at least semi-monthly paydays for everyone else.
6. If you use a PEO, confirm it is on the NYS DOL list of registered PEOs (387 names as of October 1, 2026).

Worked example: one $50,000 employee in New York

New York's $17,600 wage base is more than twice the federal $7,000, so the state unemployment line is larger than in most states.

Your DBL premium is not a state rate, so get it from your carrier. For comparison, a Florida or Texas employer pays under $250 in state unemployment tax on the same worker. The worker also has these New York deductions, which you withhold but do not pay:

The 2026 experience-rated range is 2.025% to 9.825% before the 0.075% fund charge. See how New York compares on SUTA, or change the salary in the calculator.

Payroll services and PEOs in New York

Payroll errors in New York tend to come from three places: the wrong local tax code for an NYC or Yonkers resident, a missing DBL or PFL deduction, and manual workers paid on the wrong schedule. Ask any provider whether it files NYC and Yonkers withholding and whether it tracks the $411.91 PFL cap. Gusto starts at $49 a month plus $6 per person for single-state payroll (checked October 16, 2026); see ranked payroll providers for others.

A PEO can supply the workers comp, DBL and PFL policies and group health in one contract. Start with New York PEOs and what they charge and PEO scores.