Employer Obligations
If you expect to hire employees, this applies to you.
Workers' Compensation
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 New York State
Insurance Fund, a not-for-profit state agency (212-312-9000).
Disability Benefits
The New York Disability Benefits Law (NY DBL) is a special section of
the New York State
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
New York State Insurance Fund.
Unemployment Insurance
When you begin business in New York State and hire one or more employees,
you must register the
New York State 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 complete and mail the appropriate form to the NYS Department of Labor.
Posting Notices
You must post and maintain, in a conspicuous place, a printed notice
stating that you have complied with all the rules and regulations governing
workers' compensation. You must also state that you have secured the
payment of compensation to your employees and their dependents as provided
under the Workers' Compensation Law. You can get these printed notices
from your insurance carrier. For further information, contact the Advocate
for Business, New
York State Workers' Compensation Board, 20 Park Street, Albany,
N.Y. 12207, telephone 1-800-628-3331.
New York State and Federal posting requirements can be
found at the
New York State Department of Labor and the
U.S. Department of Labor.
You will also need to know what permits and/or licenses
need to be posted. Contact the Governor's
Office of Regulatory Reform at 1-800-342-3464/518-474-8275 or your
local New York State
Small Business Development Center for assistance.
Federal Unemployment Tax
You are subject to federal unemployment tax if, during the current or
prior year, you paid wages of $1,500 or more during any calendar quarter
in the current calendar year or any calendar quarter in the preceding
calendar year; or employed at least one person for some part of one
day for any 20 weeks during the current or preceding calendar year.
The unemployment insurance program is operated jointly by the state
and federal governments, and the federal tax due may be reduced, within
limits, by a portion of the unemployment taxes paid to the state. For
more information, contact the Forms Division of the Internal
Revenue Service and ask for Form 940 and its accompanying instruction
book, "Employers Annual Federal Unemployment Tax Return,"
at 800-829-3676 or 800-TAX-FORM.
Social Security
Both employers and employees bear the cost of federal Social
Security. As an employer, you must file an application for an employer's
identification number on Form SS-4, which you can get from any IRS office.
Circular E, "Employer's Tax Guide," gives you a comprehensive
summary of Social Security taxes.
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.
Immigration
The 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.
Federal Government Employers
Information
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 and obtain an
Employer Identification Number (EIN) via the Internet.
Health Coverage
Providing health insurance coverage can be a challenge for small businesses
in today's competitive environment. To meet this critical need, New
York State has implemented the HealthyNY
Program to ensure that affordable health benefits are accessible
to the State's small business owners and working uninsured individuals.
To find out if you qualify for this important program, contact a Health
Maintenance Organization (HMO), visit the Healthy
NY web site or call 1-866-HEALTHY NY.
Review the
Small
Business Guide to Health Insurance for more information.
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