Do I need to register with New York State before I can run payroll?
Yes, you must register with New York State before paying your first employee. Running payroll without proper registration puts you out of compliance and leads to penalties once the state catches up with you.
You’ll need a federal Employer Identification Number before registering with New York. If you don’t have an EIN yet, apply through the IRS website and you’ll receive it immediately. This number is required on all your state registration forms.
New York uses Form NYS-100 to register employers for both withholding tax and unemployment insurance at the same time. Submit this to the Department of Taxation and Finance. You’ll receive a withholding identification number that allows you to withhold New York income tax from employee wages and remit it to the state. You’ll also be set up with the Department of Labor for unemployment insurance contributions.
Once registered, you’ll file Form NYS-45 quarterly. This combined report covers both your withholding tax and unemployment insurance obligations. You’ll report total wages paid, taxes withheld, and UI contributions due. The state sends penalty notices quickly when quarterly filings are late or missing, so mark these deadlines on your calendar.
Workers’ compensation insurance is also required in New York before you hire anyone. The state audits for coverage regularly through NYSIF, and operating without it creates serious liability. Get this in place alongside your payroll registrations.
Many Long Island business owners setting up payroll for the first time find the process manageable but time-consuming to research. Payroll system setup and training can help you configure everything correctly from the start so you’re not guessing about state requirements.
If you’re already running a business and adding employees for the first time, this is a good moment to make sure your books are organized for the added complexity of payroll expenses and tax liabilities. Long Island bookkeeping services can help you track payroll costs accurately and keep clean records for quarterly and year-end reporting.
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