New York Payroll Guide for Employers

New York Payroll Requirements: What Employers Need to Know in 2026

New York payroll involves more mandatory programs and more layers of jurisdiction than almost any other state, and employers who are not familiar with the full picture often find themselves short on withholding or late on filings. New York State income tax runs from 4% to 10.9% across nine brackets, and you withhold and remit this separately from federal income tax using the NYS-45, the combined quarterly return that covers both state income tax withholding and unemployment insurance. On top of the state rate, employees who live in New York City owe an additional city income tax ranging from 3.078% to 3.876%—and you are responsible for withholding and remitting that too, even though the city administers it alongside the state.

New York State Unemployment Insurance for new employers is 4.1% on the first $12,500 of each employee's wages in 2026. This is among the higher new-employer rates in the country, and the taxable wage base is also substantially higher than the federal $7,000 floor. Your rate is experience-rated after three years of payroll history. The NYS-45 filing is due quarterly—April 30, July 31, October 31, and January 31. Late filings generate interest and penalty charges that accumulate quickly, so this is not a due date to let slip. The New York SUI rates guide covers how the experience rating system works and what your rate notice means each year.

New York requires two mandatory employee-funded programs that most other states lack. New York Paid Family Leave runs at 0.388% of gross wages in 2026, capped at $333.25 per employee per year. Separately, New York State Disability Insurance requires a $0.60 per week employee contribution. Both programs are funded through employee payroll deductions, but you must administer the withholding correctly and remit to the appropriate carrier or state fund. PFL provides up to 12 weeks of paid, job-protected leave for qualifying family situations; SDI covers off-the-job illness and injury. The New York PFL and SDI guide for 2026 explains benefit calculations and how to handle leave requests.

If your business operates in or near New York City, check whether the Metropolitan Commuter Transportation Mobility Tax applies to you. The MCTMT is a quarterly employer tax of 0.34% on wages paid in the 12-county metro area when your payroll in that area exceeds $312,500 in a quarter. This is separate from everything else, is filed directly with the New York State Department of Taxation and Finance, and catches many employers off guard when they first cross the threshold. Additionally, minimum wages differ by geography: employers in New York City, Long Island, and Westchester must pay at least $16.50 per hour in 2026; employers elsewhere in the state must pay at least $15.50 per hour. See the New York minimum wage guide for the full schedule by region.

New York employers must register with the Department of Labor before running their first payroll, not after. The Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting (Form NYS-100) sets up all three accounts at once. New hire reporting must go to the New York State Directory of New Hires within 20 days of the hire date. Final paychecks are due on the next regular payday following separation. New York has detailed payday frequency requirements—manual workers must be paid weekly, and clerical or other workers must be paid at least semi-monthly unless you obtain special permission. Getting this wrong is one of the more common New York Wage Theft Prevention Act violations.

2026 New York payroll quick facts: State income tax 4%–10.9% (9 brackets) | NYC income tax 3.078%–3.876% for city residents | SUI new employer rate 4.1% on $12,500 wage base | NY PFL 0.388% employee-paid, cap $333.25/year | NY SDI $0.60/week employee-paid | MCTMT 0.34% for employers with metro payroll over $312,500/quarter | Minimum wage $16.50/hr NYC/LI/Westchester, $15.50/hr upstate | Final paycheck: next regular payday | New hire reporting: 20 days | Quarterly filing: NYS-45