New York
Make employment in New York easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in New York, all in one easy-to-use platform.
- Capital City
Albany
- Currency
United States Dollar ($, USD)
- Population size
19,900,000
Facts & Stats
- Capital City
Albany
- Currency
United States Dollar ($, USD)
- Population size
19,900,000
- VAT - standard rate
4% (Plus city, county, or district tax (total minimum 8%))
From Niagara Falls in the north to the sprawling metropolis of New York City in the south, the Empire State is storied and iconic at every turn.
Home to numerous global institutions like Wall Street, Broadway, Columbia, and the UN, it’s one of the world’s foremost cultural, political, and educational destinations — making it a hugely popular and desirable location for both employees and employers alike.
Grow your team in New York with Remote
If you want to hire in New York, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.
We can employ top talent in New York on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in New York through Remote.
Risks of misclassification
New York, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in New York may lead to fines and penalties for the offending company.
Employing in New York
In New York, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in New York.
Hours of work in New York
Work and overtime laws in New York are overseen by the state’s Department of Labor.
What is considered full-time employment in New York?
Full-time employment is generally considered to be between 30 and 40 hours per week, although there is no set legal definition.
Do salary employees get overtime in New York?
Under the federal Fair Labor Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In New York City and the counties of Westchester, Suffolk, and Nassau, the salary threshold for exemption is currently $1,125 per week. In the rest of New York State, it is $1,064.25.
Note that the federal salary threshold for exemption is currently being reviewed in the US.
Minimum wage in New York
The minimum state wage for private sector employees is currently $15 per hour, although a higher rate of $16 applies for employees in New York City and the counties of Nassau, Suffolk, and Westchester.
Onboarding timeline in New York
We can help you get your new employee started in New York fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Payroll cycle in New York
Under state law, employees must be paid at least twice per month (employees in some manual occupations must be paid weekly).
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Effortless HR New York: Take the Tour
Competitive benefits package in New York
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the New York labor market, allowing your employees to feel appreciated and thrive.
Our benefits packages in New York usually include some or all of the following:
Pension or 401(K)
Medical Insurance
Vision Insurance
Health Saving Plan (HSA)
Long term disability insurance (LTD)
Dental Insurance
Life Insurance
Flexible Spending Account (FSA)
Are employers required to provide health insurance in New York?
Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Are employers required to offer 401k in New York?
The state is currently in the process of mandating qualified savings plans for private sector employees.
Under this legislation, you will need to enroll your employees into the New York Secure Choice Savings Program (or another recognized retirement plan).
Note that this will only apply to your business if it:
Has at least 10 employees
Has been a registered business for at least two years
Does not already offer a qualified savings plan
Note that employees in New York City will be covered by a different program under the Retirement Security for All Act. The details of this program are yet to be disclosed, but it will apply if your business:
Has at least five employees whose “regular duties” occur in the city
Has been a registered business for at least two years
Taxes in New York
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in New York.
Employer taxes
Employment Tax | |
|---|---|
6% | Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year) |
0.6% to 7.9% | State unemployment insurance tax (SUTA) |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Employee taxes
Tax/Statutory Fee | |
|---|---|
10% to 37% | Federal income tax |
4% to 10.9% | State income tax |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Types of leave in
Vacation | In New York, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees. However, many employers offer 10 days of paid leave after the first year of employment. |
Sick leave | Under state law, sick leave is dictated by a company’s size and net annual income, as follows: 0-4 employees (with annual net income =< $1 million): 40 hours’ unpaid sick leave 0-4 employees (with annual net income > $1 million): 40 hours’ paid sick leave 5-99 employees: 40 hours’ paid sick leave 100+ employees: 56 hours’ paid sick leave Employers can either provide a lump sum of sick leave at the beginning of each year, or allow employees to accrue it over time. Can an employer deny sick time in New York? For eligible employees, no. Under the federal Family and Medical Leave Act (FMLA), eligible employees are also entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius |
Parental and maternity leave | Under the state’s Paid Family Leave Law, employees are eligible for up to 12 weeks of paid family leave per year. This can be used for parenting, caring for a family member with a serious health condition, or to support the employee through a family member’s active-duty military deployment. Under the FMLA, employees are also entitled to up to 12 weeks of unpaid maternity or paternity leave. Maternity leave Under the state’s Temporary Disability Benefits law, employers must provide four to six weeks of paid leave for temporary disability related to pregnancy and childbirth. |
Bereavement leave | Employers are not legally required to provide bereavement leave to their employees, although most organizations offer unpaid leave. |
Jury duty | Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in New York? If your company has more than 10 employees, you must pay the employee $40 per day for the first three days of their service. Private sector employers must also provide unpaid leave, and cannot penalize or terminate an employee on jury duty. |
Military leave | Under state and federal law, employers must grant leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service. Military spouse leave Under the state’s Military Family Leave law, employees with a military spouse deployed to a conflict zone are also entitled to 10 days’ unpaid leave. This is only applicable if your business has at least 20 employees, all of whom regularly work at least 20 hours per week. Note that the leave must be taken during the deployment. |
Employment termination in New York
Termination process
Like nearly all US states, New York is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Notice period
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organization.
Severance pay
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.
Probation periods
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.