Hiring Your First Employee in New York (2026)
The New York-specific steps for a first W-2 hire, layered on top of the federal checklist. Every figure links to the state agency or official source we checked.
Minimum wage
$17.00/hour in New York City, Long Island and Westchester; $16.00/hour in the rest of the state (2026).
State unemployment tax (SUTA)
The 2026 new-employer rate is 4.1% in total, which includes the Re-employment Service Fund. The 2026 wage base is $17,600, up from $12,800 in 2025. From 2026 on, it resets each January to 18% of the state average wage.
Income tax withholding registration
Register with the NY Department of Labor for unemployment insurance. State and local (NYC, Yonkers) income tax withholding is reported with UI wages on the quarterly combined Form NYS-45. Employees file Form IT-2104. Form NYS-50 is the official employer guide.
New-hire reporting
Report within 20 calendar days of hiring or rehiring, to the NYS Department of Taxation and Finance.
Workers' compensation
Required for nearly all employers with one or more employees, including part-time workers and family members. New York also requires disability benefits (DBL) and Paid Family Leave coverage, usually bought as a single policy, once you've employed someone on 30 days in a calendar year.
Paid sick leave, family leave & disability
Paid sick leave accrues at 1 hour per 30 hours worked. Employers with 5 to 99 employees provide up to 40 paid hours a year, and those with 100 or more provide up to 56. With 4 or fewer employees, the 40 hours must be paid if your net income in the prior tax year was over $1 million; otherwise the hours can be unpaid. NYC has its own Earned Safe and Sick Time Act. Paid Family Leave: in 2026, employees can be charged up to 0.432% of gross wages, capped at $411.91 a year.
Required posters
The NY Department of Labor lists the state posting requirements. The Workers' Compensation Board also requires notices of workers' comp, disability, and PFL coverage, which your insurer provides. Federal posters apply too; the DOL FirstStep Poster Advisor shows which ones. Official posters are free.
Worked example: one full-time employee at $18/hour
This uses the same assumptions as our employee cost calculator: $18/hour, 40 hours a week, 52 weeks, 2026 federal rates, and New York's new-employer SUTA rate. Workers' comp is a placeholder; your insurer's rate for the job class will differ.
| Wages: $18 × 40 h × 52 weeks | $37,440.00 |
| Social Security (6.2%) | $2,321.28 |
| Medicare (1.45%) | $542.88 |
| FUTA (0.6% of first $7,000) | $42.00 |
| NY unemployment: 4.1% of first $17,600 | $721.60 |
| Workers' comp, illustrative $1.00 per $100 of payroll | $374.40 |
| Total before benefits | $41,442.16 |
That's 1.11× wages, or about $19.92 per hour paid, before benefits, paid leave, and payroll software. $18/hour is above New York's 2026 minimum wage.
FAQ
What is the New York SUTA rate for new employers in 2026?
The 2026 new-employer rate is 4.1% in total, which includes the Re-employment Service Fund. The 2026 wage base is $17,600, up from $12,800 in 2025. From 2026 on, it resets each January to 18% of the state average wage.
Is workers' comp required for my first employee in New York?
Required for nearly all employers with one or more employees, including part-time workers and family members. New York also requires disability benefits (DBL) and Paid Family Leave coverage, usually bought as a single policy, once you've employed someone on 30 days in a calendar year.