Prior to issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to acquire the necessary tax account details for payment purposes.
Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.
Let us register for you
Niural partners with Middesk to help you register your business in new states.
How it works
On adding a new work address in a different state and recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.
The pricing is subject to change based on the state.
Here's an overview of the procedure:
1. Provide essential business details.
2. Niural and Middesk will verify the accuracy of the information.
3. Registration applications are normally sent within 3-5 business days.
4. Look out for registration details from Middesk in the mail.
5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.
Initiate the state tax registration process
- Sign in to Niural as an employer.
- Navigate to the Company tab.
- Select Tax setup.
- Under “[State name] Tax Setup”, click Let Niural register for you.
Note: Niural can only register for you if you don't yet have a state account already.
- Enter company information on Middesk.
- Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.
- Check the status of your order
- Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:
1. Reviewing registration information.
2. Any additional state-specific instructions.
Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.
Cancel your order
If an order is already completed, you'll need to contact Middesk to cancel.
If an order is in progress you can email us at support@niural.com.
You'll be refunded, but it can take a few business days to process.
New York tax agencies
- New York Department of Taxation and Finance - income tax withholding
- New York Department of Labor - unemployment tax
Registration for withholding and unemployment accounts for income and unemployment taxes.
- Visit the website of the New York Department of Labor to complete the registration process for both income withholding and unemployment tax.
- For non-profit organizations, please fill out the NYS-100N form available on this platform.
- In the "Agent C/O Address" section, when prompted to specify whether you want unemployment-related mail to be sent to your payroll provider, please choose the option "No.”
- Note: When you complete the registration process with the New York Department of Labor, you will also be automatically registered with the New York Department of Taxation and Finance.
Expect to receive your account numbers and company-assigned rate(s) within 7 to 10 business days following your online registration.
Enter the tax account information in Niural
Once a valid New York work address has been added in Niural for one or more employee(s), you can add your tax account information:
- Navigate to the Company tab.
- Select Tax setup.
- In the "New York Tax Setup" section, Niural will utilize your Federal Employer Identification Number (FEIN) as your New York State Identification Number. You have the option to enter "00" as your NYS Suffix for the last two digits.
- If you require any changes to your account number, please reach out to us through support@niural.com. It's essential to note that there could be tax implications if taxes have already been paid or filed using an incorrect account number.
- Provide your UI Employer Registration Number, which has been assigned to you by the Department of Labor. On the New York Business Express site, this number may be referred to as an ER-#.
To enter your UI Employer Registration Number correctly:
- If you have a 7-digit number, use a dash after the second digit: ##-#####.
- If you have an 8-digit number, enter it in the following format: ##-##### #.
- If you require any updates to your account number, please reach out to us at support@niural.com. Keep in mind that there may be tax implications if taxes have already been paid or filed to an incorrect account number
- Input your UI Rate. If you have not received your rate yet, you can temporarily enter the state-specific "new employer rate." You can click here to view the state-by-state new employer rates.
- Please refrain from entering the "Re-employment services fund" or the "Total UI rate" into Niural. We will automatically combine the re-employment services rate with your experience rate on your behalf.
- If applicable, please enter your 6-digit PrompTax access code in Niural. This code is necessary for the successful filing and payment of your taxes.
- PrompTax is an electronic filing and payment program mandated for employers whose aggregate tax withheld for the previous tax year is $100,000 or more. Employers falling into this category will receive instructions on how to register for PrompTax from the New York Department of Taxation and Finance.
- After successfully registering your business for PrompTax through Online Services, you will be provided with a 6-digit access code. Please ensure to input this 6-digit access code in Niural.
- It's important to note that when you initially register, you might receive a 5-digit PIN. This PIN is distinct from the 6-digit PrompTax access code, and it should not be entered into your Niural account. Please ensure that you do not confuse the two codes.
- If you require assistance in locating your 6-digit PrompTax access code or PIN, please don't hesitate to contact the NY PrompTax Customer Service Center at (518) 457-2332. They will be able to provide you with the necessary guidance and support.
State Disability Insurance (SDI)
New York is among the states that mandate employers to offer disability benefits coverage to employees for off-the-job injuries or illnesses. They facilitate this through a state-operated program known as the New York State Insurance Fund (NYSIF). Employers can enroll in this program to provide the required Disability Benefits policy to their employees.
Alternatively, you also have the option to purchase coverage with AP Intego if you prefer. AP Intego Disability Insurance operates on a direct billing system, meaning you pay premiums annually directly to the carrier. Please note that this option is not integrated with Niural. For further details and inquiries, we recommend reaching out to AP Intego directly.
Note:
In New York, you have the option to withhold the premium for this policy from your employees' paychecks to contribute to funding it. If you choose Niural to deduct this amount from your employees' pay, the funds will be retained in your bank account for you to subsequently pay to your SDI (State Disability Insurance) insurance provider. Please note that Niural does not currently automate the process of remitting payments directly to your insurance provider; it's the responsibility of the employer to make those payments.
State family leave insurance (SFLI)
New York is among the states that mandate employers to offer family leave benefits coverage to employees for eligible leaves. Employers should reach out to their existing State Disability Insurance (SDI) carrier to obtain further information on how to incorporate Paid Family Leave coverage into their policies.
You have the option to withhold an amount, up to the annual limit, from your employees' wages to cover Family Leave Insurance. If you opt for Niural to facilitate these deductions, the funds will be retained in your bank account, and it will be your responsibility to use these funds to pay your State Family Leave Insurance (SFLI) insurance provider. Niural does not automatically transfer these payments to the insurance provider.
At this time, Niural does not automatically remit payments to your insurance provider.
Workers’ compensation
In New York, Workers' Compensation insurance is obligatory for most employers with one or more employees. Employers have the option to secure coverage through the New York State Workers' Compensation Board (WCB), or they can choose to work with a licensed private insurance agent or broker in New York. One such partner is AP Intego (now part of NEXT Insurance), who provides policies integrated directly with Niural for added convenience.
When it comes to local tax registration in New York, it includes the metropolitan commuter tax and participation in the START-UP NY program. These local taxes are remitted to the State of New York.
- In New York City, local taxes are levied based on the residence of employees, while in Yonkers, local taxes are imposed based on both the residence and the location of work of the employee.
Metropolitan commuter transportation mobility tax (MCTMT)
The metropolitan commuter transportation mobility tax (MCTMT) is a payroll tax calculated as a percentage of gross wages paid to employees who work within the metropolitan commuter transportation district (MCTD). The MCTD encompasses the following counties:
- New York (Manhattan)
- Bronx
- Kings (Brooklyn)
- Queens
- Richmond (Staten Island)
- Rockland
- Nassau
- Suffolk
- Orange
- Putnam
- Dutchess
- Westchester
Employees working within these counties are subject to the MCTMT payroll tax.
To determine which employees are subject to the metropolitan commuter transportation mobility tax (MCTMT), please refer to the Department of Taxation and Finance website for detailed guidelines and information.
First, let us know if you’re liable for MCTMT
When you are in the process of onboarding an employee in New York, you will encounter a prompt asking whether their wages are subject to the metropolitan commuter transportation mobility tax (MCTMT). Here are the steps to follow:
1. If the employee's wages are liable to MCTMT, select "Yes." Niural will apply this tax to their payroll and ensure that tax payments are made to the agency on your behalf.
2. If the employee's wages are not subject to MCTMT, select "No." In this case, Niural will not apply this tax to their payroll.
In the second step, indicate whether you have a history of MCTMT payments.
If you've chosen to have us withhold MCTMT, you will be asked if you've made prior MCTMT deposits in previous quarters.
- If you have previously made MCTMT payments, mark "Yes'' and input the applicable tax rate. Niural will then deduct this tax rate from each employee's payroll who is designated as subject to MCTMT in every pay period.
- If this is your first time being subject to MCTMT, please mark "No." During the initial quarter, Niural will not apply this tax because the rate is unknown. However, beginning with the following quarter, the tax rate will be determined based on the total wages paid during that quarter, and Niural will apply the appropriate rate accordingly.
- If your payroll expenses surpass the threshold in the initial quarter, and MCTMT is owed, we will collect this amount through a tax reconciliation payroll processed at the end of the quarter. Once your tax rate is determined, Niural will then deduct this tax rate from every payroll for each employee designated as subject to MCTMT.
Payments and reporting
Please document employee earnings in the Employer's Quarterly Metropolitan Transit Tax Form (MTA-305), which can be found in your Documents tab.
START_UP New York tax program
Although we do not presently provide direct assistance for the START-UP NY program, it's important to note that New York offers a tax exemption program for eligible startups under this initiative. For comprehensive program regulations and information about your responsibilities, we recommend visiting the agency website.
If your employee is eligible for the START-UP NY program and opts to exempt their wages, please get in touch with us. We will assist in ensuring that your account details and filings are appropriately configured to accommodate this exemption.
- Note: Participation in the START-UP NY program can have implications for MCTMT payments and filings. Therefore, it's crucial to inform Niural if you apply for this program to ensure proper adjustments are made.
Find account numbers and rate info (if you're already registered)
If you have already completed the registration process in the state, you will be required to input your tax account details into Niural to facilitate the payment of your employees.
To enable Niural to file and make tax payments on your behalf, it's necessary for you to be registered with one or more of the following agencies:
- New York Department of Taxation and Finance - income tax withholding
- New York Department of Labor - unemployment tax
- Local New York tax agencies - various
Find your withholding tax account number
If you've processed payroll in New York before, your New York State Identification Number for income tax withholding will consist of your FEIN followed by a 2-digit location code.
- The location code is typically "00" unless you have multiple business locations.
Find your unemployment account number, rate, and PrompTax code
Employer Registration Number
You can locate your unemployment Employer Registration Number from the Department of Labor on:
- Form NYS-45 or your previous quarterly return(s).
When entering this number:
- For a 7-digit number, use a dash after the second digit: ##-#####.
- For an 8-digit number, format it as follows: ##-##### #.
If you are utilizing the New York Business Express site, the account number may be referred to as an ER-#.
Unemployment tax rate (contribution rate)
Your UI contribution rate appears on:
- Form IA 97; the Notice of Unemployment Insurance Rate that you receive from the New York Department of Labor each year.
If you're unsure about your account number or rate, call the agency at (888) 899-8810.
If you don't have your rate yet and need it to run payroll, you can enter the state-specific "new employer rate" found in this article.
Find your PrompTax 6-digit code
PrompTax is an electronic filing and payment program generally mandated when your aggregate tax withheld for the previous tax year totals $100,000 or more. Employers who are obligated to make electronic payments will receive instructions from the New York Department of Taxation and Finance regarding this requirement.
Upon registering your business for PrompTax through Online Services, you will receive a 6-digit access code.
- During the initial registration process, you might receive a 5-digit PIN. It's important to note that this PIN is distinct from the 6-digit PrompTax access code and should not be entered into your Niural account. Please ensure that you do not confuse the two.
If you require assistance in locating your 6-digit PrompTax access code or PIN, please don't hesitate to contact the NY PrompTax Customer Service Center at (518) 457-2332. They will be able to provide you with the necessary guidance and support.
If you have already registered for the PrompTax e-payment system, please select "ACH Credit" as your payment option and specify "Niural Inc." as your payroll provider. This choice will help facilitate the payment process efficiently.
State Disability Insurance (SDI)
New York is among the states that mandate employers to offer disability benefits coverage to employees for off-the-job injuries or illnesses. Employers can fulfill this requirement by participating in the state-run program called the New York State Insurance Fund (NYSIF) to provide the Disability Benefits policy.
Important: New York permits you to deduct this premium from your employees' paychecks to assist in financing this policy. If you choose Niural to manage this deduction from your employees' pay, the funds will be retained in your bank account for you to subsequently remit to your SDI (State Disability Insurance) insurance provider. It's crucial to note that Niural does not currently automate the process of forwarding payments to your insurance provider.
State family leave insurance (SFLI)
New York is among the states that mandate employers to offer coverage for family leave benefits to employees during eligible leaves. Employers are advised to get in touch with their existing SDI carrier to explore the process of including Paid Family Leave coverage.
You have the option to withhold an amount, up to the annual limit, from your employees' wages to cover the cost of Family Leave Insurance. If you opt for Niural to facilitate these deductions, the funds will be retained in your bank account, and it will be your responsibility to use these funds to pay your State Family Leave Insurance (SFLI) insurance provider. Niural does not automatically transfer these payments to the insurance provider.
- Note: the annual limit is subject to change each year.
Currently, Niural does not automatically send payments to your insurance provider.
Workers’ compensation
In New York, Workers' Compensation insurance is obligatory for the majority of employers with one or more employees. You have the option to secure coverage either through the New York State Workers' Compensation Board (WCB) or through a licensed private insurance agent or broker in New York. One of our partners, AP Intego (now part of NEXT Insurance), provides policies that are seamlessly integrated with Niural for added convenience.
Local tax information—metropolitan commuter tax and START-UP NY program
Local taxes are paid to the State of New York.
- New York City imposes local taxes based on where employees live.
- Yonkers imposes local taxes based on where the employee lives and works.