Internal Revenue Service Small Business One-Stop Resource provides links to information on employment taxes, wage reporting requirements, employer identification number (EIN) and other items of interest to businesses with employees. You can apply online to obtain an Employer Identification Number (EIN).
The Federal Immigration Reform and Control Act of 1986 states that all employers are required to verify employment eligibility of new employees. The law obligates an employer to process Employment Eligibility Verification Form I-9.
Both employers and employees bear the cost of Social Security. As an employer, you must file an application for an employer's identification number on Form SS-4. Self-employed individuals and partners of firms who net $400 or more a year must also have a Social Security card and pay Social Security tax. If you fall into this category, the tax is included on your Federal income tax return.
For further information, contact your nearest Social Security office, which is listed in the blue pages of your local telephone directory, or contact the Federal office at (800) 772-1213.
New York State Information
Any business that hires employees is subject to the laws requiring the withholding of New York State income tax. It is also responsible for paying unemployment insurance, workers' compensation and disability insurance, and for filing wage reporting reports. The NYS Department of Taxation & Finance provides information on hiring employees. The NYS Workers' Compensation Board provides information on insurance requirements.
Information on State tax requirements regarding new employees can be found on the NYS Department of Taxation & Finance's New Hire Reporting page.
Providing health insurance coverage can be a challenge for small businesses in today’s competitive environment. Starting October 1, 2013, small business owners will be able to use NY State of Health to provide their employees health insurance coverage. NY State of Health is a tool for small businesses to have a better choice of health insurance policies and insurers at a lower cost. It will make providing health insurance to employees easier.
You must post and maintain, in a conspicuous place, printed notices stating that you have complied with all the rules and regulations governing workers' compensation and disability benefits. You must also state that you have secured the payment of compensation and disability benefits to your employees and their dependents as provided under the Workers' Compensation Law.
For further information, visit the Advocate for Business, NYS Workers' Compensation Board, or call (800) 628-3331.
New York State and Federal posting requirements can be found at the NYS Department of Labor and the U.S. Department of Labor. The Governor's Office of Regulatory Reform or your local NYS Small Business Development Center can also assist in learning what permits and/or licenses need to be posted.
When you begin business in New York State and hire one or more employees, you must register at the NYS Department of Labor Unemployment Insurance Division to determine whether or not you are liable for unemployment insurance in New York State. To register as an employer, you will need to contact the NYS Department of Labor.
According to New York State Workers' Compensation Law, qualifying businesses must obtain workers' compensation insurance before putting employees to work. Personal injuries incurred in the course of employment and deaths resulting from such injuries are compensable under this law.
Rates for workers' compensation insurance vary according to the nature of the employment and hazards involved. You can arrange to have insurance carried with any private company authorized to transact the business of workers' compensation insurance in the New York State, or with the NYS Insurance Fund, a not-for-profit state agency.
The New York Disability Benefits Law is a special section of the NYS Workers' Compensation Law that protects workers from non-occupational injury or sickness. If you employ one or more employees (in covered employment) for 30 days in any calendar year, then you are subject to this law and must get protection, generally in the form of insurance, from a company authorized to write accident and health insurance in New York State, or from the NYS Insurance Fund.