Payroll New York, Unique Aspects of New York Payroll Law and Practice

The New York State Agency that oversees theand Net Earnings
collection and reporting of State income taxesexplanation of wage computation if requested
deducted from payroll checks is:Department ofitemized deductionsNew York requires that employee
Taxation and Financebe paid no less often than semimonthly; weekly for
New York State Income Tax Bureaumanual workers (semimonthly if commissioner of labor
W.A. Harriman Campusagrees); less frequently for FLSA-exempt employees
Albany, NY 12227-0125paid over $600 a week.New York requires that the lag
(800) 225-5829 (in state)time between the end of the pay period and the
York requires that you use New York form "IT-2104,payment of wages to the employee not exceed
Employee's Withholding Allowance Certificate" or aseven days for manual workers.New York payroll law
Federal W-4 Form for New York State Income Taxrequires that involuntarily terminated employees must
Withholding.Not all states allow salary reductions madebe paid their final pay by next regular payday (by mail
under Section 125 cafeteria plans or 401(k) to beif employee requests) and that voluntarily terminated
treated in the same manner as the IRS code allows. Inemployees must be paid their final pay by the next
New York cafeteria plans are not taxable for incomeregular payday or by mail if employee requests
tax calculation; taxable for unemployment insuranceit.Deceased employee's wages of $30,000 must be
purposes. 401(k) plan deferrals are not taxable forpaid within 30 days of death to the designated
income taxes; taxable for unemployment purposes.Inbeneficiary or surviving spouse; $15,000 within 31 days
New York supplemental wages are taxed at an 8.2%to 6 months to the surviving spouse, adult children,
flat rate.W-2s are not required to be sent in Newparent, sibling, niece or nephew, creditor, or person
York.The New York State Unemployment Insurancepaying funeral expenses (in that order); $5,000 if more
Agency is:Division of Unemployment Insurancethan 6 months after death to distributee, creditor, or
State Campus, Bldg. 12funeral expenses.Escheat laws in New York require
Albany, NY 12240that unclaimed wages be paid over to the state after
(518) 457-2635three years.The employer is further required in New
State of New York taxable wage base forYork to keep a record of the wages abandoned and
unemployment purposes is wages up toturned over to the state for a period of 5 years (after
$8,500.00.New York requires Magnetic media reportingDec. 31 of year report is filed).New York payroll law
of quarterly wage reporting if the employer has atmandates no more than $1.85 may be used as a tip
least 250 employees that they are reporting thatcredit.In New York the payroll laws covering
quarter.Unemployment records must be retained inmandatory rest or meal breaks are only that all
New York for a minimum period of three years. Thisemployees must have 30 minutes for noon meal from
information generally includes: name; social security11 a.m.- 2 p.m. (60 in factory); another 20 minutes from
number; dates of hire, rehire and termination; wages by5 p.m.-7 p.m. if shift starts before 11 a.m. and goes after
period; payroll pay periods and pay dates; date and7 p.m.; 45 minutes during shift of at least 6 hours
circumstances of termination.The New York Statestarting between 1 p.m. and 6 a.m. (60 in factory).New
Agency charged with enforcing the state wage andYork statute requires that wage and hour records be
hour laws is:Department of Laborkept for a period of not less than six years. These
Division of Labor Standardsrecords will normally consist of at least the information
State Office Bldg. Campusrequired under FLSA.The New York agency charged
Building 12, Rm. 532with enforcing Child Support Orders and laws is:Division
Albany, NY 12240of Child Support Enforcement
(518) 457-4321New York State Department of Family Assistance
minimum wage in New York is $5.15 per hour.The40 N. Pearl St.
general provision in New York concerning payingAlbany, NY 12243
overtime in a non-FLSA covered employer is one and(518) 474-9081
one half times regular rate after 40-hour week.NewYork has the following provisions for child support
York State new hire reporting requirements are thatdeductions:When to start Withholding? First pay period
every employer must report every new hire andafter 14 days from service.
rehire. The employer must report the federally requiredWhen to send Payment? Within 7 days of Payday.
elements of:Employee's nameWhen to send Termination Notice? "Promptly"
Employee's addressMaximum Administrative Fee? no provision
Employee's social security numberWithholding Limits? Federal Rules under CCPA.
Employer's namePlease note that this article is not updated for
Employers addresschanges that can and will happen from time to
Employer's Federal Employer Identification Numbertime.Charles J. Read, CPA has been in the payroll,
(EIN) This information must be reported within 20 daysaccounting and tax business for 30 years, the last
of the hiring or rehiring.fifteen in private practice. Mr. Read is the author of
The information can be sent as a W4 or equivalent"How to Start a New Business".For Professional
by mail, fax or electronically.Payroll services at a Budget Price go to a Paperless
There is a $20.00 penalty for a late report and $450Payroll Company.Go to For a full service payroll
for conspiracy in New York.The New York newservice bureau with CPA's on staff.See an excerpt of
hire-reporting agency can be reached at 800-972-1233Mr. Read's interviews from William Shatners
or 800-225-5829 or on the web at York does not"Heartbeat of America" television show on the
allow compulsory direct depositNew York requires thewebsites linked above.
following information on an employee's pay stub:Gross