How to Register with New York DOL as a New Employer

Starting a business in New York means navigating one of the most complex state employer registration processes in the country. Unlike states where a single registration covers everything, New York requires you to register with multiple agencies and obtain coverage from private insurance carriers for disability and paid family leave.

This guide walks you through every step — from your initial unemployment insurance registration to new hire reporting — so you can stay compliant from day one.

1. When You Must Register

New York law requires you to register as an employer when you meet any of the following conditions:

• You pay $300 or more in wages in a calendar quarter to one or more employees
• You employ one or more workers for any part of a day in each of 20 different calendar weeks (whether consecutive or not) during a calendar year
• You acquire a business or hire an employee who was previously covered under another employer’s account

Even if you’re unsure whether your workers are “employees” versus independent contractors, err on the side of registering. New York enforces worker classification aggressively, and the penalties for misclassification are severe.

2. Step 1: Register for Unemployment Insurance at labor.ny.gov

Your first registration is with the New York Department of Labor (DOL) for an Unemployment Insurance (UI) employer account. This is your primary state employer registration.

How to Register

1. Go to labor.ny.gov and navigate to the employer section
2. Create an account on the NY.gov Business Portal if you don’t already have one
3. Complete Form NYS-100 (New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting) — this can be filed online
4. Provide your Federal EIN (Employer Identification Number) — you must have this before registering with New York
5. Indicate your business type, date of first employment, and expected quarterly wages

Your UI Account Number and Initial Rate

After registering, you’ll receive a UI employer registration number. This is your state employer account number that you’ll use on all filings.

New employers in New York are assigned an initial UI contribution rate. For 2026:

• General new employer rate: approximately 4.1% (this varies slightly year to year based on the UI trust fund balance)
• Construction industry new employer rate: approximately 5.5%
• Wage base: approximately $12,500 per employee per year

After your first full year of contributions, your rate will be adjusted based on your experience rating — your history of unemployment claims filed by former employees. The fewer claims, the lower your rate.

3. Step 2: Obtain Disability Insurance (SDI) Through a Private Carrier

New York is one of a handful of states that require employers to provide short-term disability benefits (DBL – Disability Benefits Law) to employees. Unlike unemployment insurance, which you register for through the DOL, disability coverage must be obtained from a private insurance carrier.

How SDI Works in New York

• Coverage: Provides partial wage replacement for employees who are disabled due to an off-the-job illness or injury
• Benefit amount: 50% of the employee’s average weekly wage, up to a statutory maximum (currently $170/week)
• Duration: Up to 26 weeks of benefits per disability
• Employee contribution: Employers may collect up to $0.60 per week from each employee through payroll deductions
• Employer responsibility: The employer pays the remainder of the premium cost

How to Obtain Coverage

1. Purchase a DBL policy from a private insurance carrier licensed in New York State — most major commercial insurers offer this coverage
2. File Form DB-820 (Notice of Compliance – Disability Benefits Law) with the New York State Workers’ Compensation Board to certify that you have obtained coverage
3. Post the required workplace notice informing employees of their disability benefits rights

Oversight

The New York State Workers’ Compensation Board (not the DOL) oversees the Disability Benefits Law. They handle compliance, monitor that employers maintain coverage, and adjudicate disputes. If you fail to obtain SDI coverage, the Workers’ Compensation Board can impose penalties of $500 per 10-day period of non-compliance, plus liability for any benefits owed during the uncovered period.

4. Step 3: Set Up Paid Family Leave (PFL) Coverage

New York’s Paid Family Leave program provides employees with job-protected, paid time off to bond with a new child, care for a family member with a serious health condition, or assist when a family member is deployed abroad on active military service.

Key Facts for Employers

• Duration: Up to 12 weeks of leave per year
• Benefit amount: 67% of the employee’s average weekly wage, capped at 67% of the statewide average weekly wage
• Funding: PFL is 100% employee-funded through payroll deductions — the employer does not contribute directly
• 2026 contribution rate: Approximately 0.388% of the employee’s gross wages, up to the statewide average weekly wage annualized

How to Set Up PFL

PFL coverage is typically provided as a rider on your existing DBL (disability) policy. When you purchase disability insurance from a private carrier (Step 2), PFL coverage is almost always included automatically. Here’s what to do:

1. Confirm with your DBL carrier that PFL coverage is included in your policy
2. Set up payroll deductions for the PFL employee contribution rate
3. File Form PFL-120 (Statement of Rights for Paid Family Leave) and provide it to employees
4. Post the required PFL workplace notice in a conspicuous location

The private carrier administers PFL claims, not the state. When an employee needs to take paid family leave, they file a claim directly with your insurance carrier, who processes the benefit payments.

5. Step 4: Register for State Income Tax Withholding

Every New York employer must withhold state income tax from employee wages. Registration for withholding is handled through the New York State Department of Taxation and Finance (NY Tax Department) — a separate agency from the DOL.

How to Register

1. File Form NYS-100 (the same form used for UI registration) — this simultaneously registers you for withholding tax. If you’ve already filed NYS-100 with the DOL, your withholding registration should be processed automatically
2. Alternatively, register online through the NY Tax Department’s Business Online Services
3. Receive your Withholding Tax Identification Number — this is the account number you’ll use when remitting withheld taxes

Key Withholding Requirements

• Collect Form IT-2104 (Employee’s Withholding Allowance Certificate) from each employee — this is the New York equivalent of the federal W-4
• NYC employees: If employees work in New York City, you must also withhold NYC personal income tax (rates range from approximately 3.078% to 3.876%)
• Yonkers employees: Workers in Yonkers are subject to a separate Yonkers surcharge on top of the state withholding
• Deposit schedule: Your filing frequency (quarterly, monthly, or semi-weekly) depends on the amount of tax you withhold — the Tax Department will assign your schedule

6. Step 5: MCTMT Registration (NYC Metro Only)

The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is an employer-paid payroll tax that applies to businesses operating within the Metropolitan Commuter Transportation District (MCTD). This is not a statewide tax — it only applies to specific counties.

Which Counties Are Covered?

The MCTMT applies if your employees work in any of these locations:

• New York City (all five boroughs — Manhattan, Brooklyn, Queens, Bronx, Staten Island)
• Nassau County
• Suffolk County
• Westchester County
• Rockland County
• Orange County
• Dutchess County
• Putnam County

How to Register

1. Register with the NY Tax Department at tax.ny.gov — MCTMT registration is handled through the same portal as your withholding tax account
2. Determine if you meet the threshold: Employers with quarterly payroll expenses of $312,500 or more in the MCTD are required to pay the MCTMT
3. Calculate your liability: The base rate is 0.34% of total payroll expense for most employers. Higher rates apply for very large payrolls
4. File Form MTA-305 (Employer’s Quarterly Metropolitan Commuter Transportation Mobility Tax Return) each quarter

For a detailed breakdown of MCTMT rates, thresholds, and filing deadlines, see our full guide: New York MCTMT: Metropolitan Commuter Transportation Mobility Tax.

7. Step 6: New Hire Reporting

Federal and New York State law both require employers to report newly hired and re-hired employees. This information is used to locate parents who owe child support and to detect unemployment insurance and workers’ compensation fraud.

What to Report

For each new hire, you must submit the following information:

• Employee’s name, address, and Social Security number
• Employee’s date of birth
• Employee’s date of hire (the first day services are performed for compensation)
• Employer’s name, address, and Federal EIN
• Whether the employer has health insurance available to the employee

When and Where to Report

• Deadline: Within 20 calendar days of the date of hire
• Where: Submit to the New York New Hire Reporting Center
• How: Reports can be filed online at the NY New Hire Reporting Center website, by fax, or by mail using Form IT-2104 copies
• Form: You can use a copy of the employee’s federal W-4 (or New York IT-2104) as the new hire report, or submit the data electronically

8. What You’ll Receive After Registration

Once you complete all the registration steps above, you should have the following accounts, numbers, and documents in hand:

• UI Employer Registration Number — from the NY DOL, used for quarterly UI filings (Form NYS-45)
• Initial UI Contribution Rate — your assigned rate for unemployment insurance contributions (approximately 4.1% for most new employers)
• Withholding Tax ID Number — from the NY Tax Department, used for remitting withheld state income taxes
• DBL/PFL Policy — from your private insurance carrier, providing both disability benefits and paid family leave coverage
• DB-820 Confirmation — filed with the Workers’ Compensation Board confirming your disability coverage
• MCTMT Registration (if applicable) — from the NY Tax Department for NYC metro area employers
• Workers’ Compensation Coverage — this is a separate requirement (not covered in this guide in detail, but equally critical). All New York employers must carry workers’ compensation insurance through the New York State Insurance Fund (NYSIF) or a private carrier

9. Common Mistakes to Avoid

New York’s registration process is multi-agency and multi-step. Here are the mistakes we see most often:

Mistake 1: Registering Late

The 10-day window from your first payroll is firm. Some new employers wait until they receive a DOL notice or until quarter-end to register. By then, you’re already late and may face penalties plus back-assessed UI contributions.

Mistake 2: Forgetting SDI/PFL Coverage

The DOL registration only covers unemployment insurance. Many new employers assume they’re “fully registered” after filing NYS-100 and forget to purchase a separate DBL/PFL policy from a private carrier. The Workers’ Compensation Board enforces this requirement independently and can impose penalties of $500 per 10-day period.

Mistake 3: Not Registering for MCTMT

If you operate anywhere in the NYC metro area (including Nassau, Suffolk, Westchester, Rockland, Orange, Dutchess, or Putnam County), and your quarterly payroll reaches $312,500, you owe MCTMT. This is a separate registration and a separate quarterly filing. The Tax Department will assess penalties and interest if you should have been filing but weren’t.

Mistake 4: Missing New Hire Reporting

The 20-day new hire reporting deadline is frequently overlooked by small businesses. Penalties for non-compliance can reach $20 per unreported employee, and repeated violations can result in higher penalties. Payroll software typically automates this.

Mistake 5: Confusing State and City Withholding

If your employees work in New York City or Yonkers, you need to withhold local income taxes in addition to state income tax. Failing to withhold NYC or Yonkers tax means you’re personally liable for the underpayment, even if the employee should have notified you.

10. FAQ

Do I need to register if I only have 1099 contractors?

No. If all of your workers are legitimately classified as independent contractors (1099), you do not need to register as an employer with the NY DOL. However, New York scrutinizes contractor classifications closely. If the DOL determines your contractors are actually employees, you’ll owe back contributions, penalties, and interest. See our guide: W-2 vs. 1099: What New York Employers Must Know.

Can I register for everything in one place?

Not entirely. Filing Form NYS-100 registers you for both UI and withholding tax simultaneously. However, you still need to separately purchase a DBL/PFL policy from a private carrier, file Form DB-820 with the Workers’ Compensation Board, register for MCTMT (if applicable), and submit new hire reports.

How long does registration take?

Online registration through the NY.gov Business Portal is typically processed within 1–2 business days. Your UI employer number is often issued immediately or within a few days. Obtaining a DBL/PFL policy from a private carrier can take 1–2 weeks depending on the insurer.

What if I’m buying an existing business?

If you acquire a business, you may inherit the prior owner’s UI experience rating (which could be better or worse than the new employer rate). You should file Form NYS-100 indicating the acquisition and provide details about the previous owner’s account. The DOL will determine whether to transfer the experience rating.

Do household employers need to register?

Yes. If you employ domestic workers (nannies, housekeepers, home attendants) and pay $500 or more in a calendar quarter, you are required to register with the NY DOL and provide disability benefits coverage. Household employers file Form NYS-100 just like any other employer.

Does my payroll software handle registration?

Most payroll providers — including — can register you with the NY DOL and Tax Department as part of their onboarding process. However, you are still responsible for ensuring all registrations are completed correctly, especially the DBL/PFL private carrier policy.

What penalties apply for not registering?

Penalties vary by agency:

• UI (DOL): Back-assessed contributions plus interest and potential fraud penalties
• SDI/PFL (Workers’ Comp Board): $500 per 10-day period of non-compliance, plus liability for unpaid benefits
• Withholding tax (Tax Department): Trust fund recovery penalties — personal liability for the business owner
• New hire reporting: $20 per unreported employee, escalating with repeated violations