1. What is New York Payroll Tax?

New York payroll taxes for employers include FICA taxes (Social Security and Medicare), New York State Unemployment Insurance, and Workers' Compensation insurance. Employers must calculate and pay these taxes on behalf of their employees.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( \text{Gross} \) — Employee's gross pay in USD
• \( \text{FICA} \) — Federal Insurance Contributions Act tax rate (typically 7.65%)
• \( \text{NY Unemployment} \) — New York State Unemployment Insurance tax rate
• \( \text{Workers Comp} \) — Workers' Compensation insurance rate

Explanation: The calculator sums up all three components of payroll taxes that New York employers must pay.

3. Importance of Payroll Tax Calculation

Details: Accurate payroll tax calculation is crucial for compliance with New York State labor laws and to avoid penalties. These taxes fund important social programs and worker protections.

4. Using the Calculator

Tips: Enter gross pay in USD and the appropriate tax rates as decimals (e.g., 7.65% = 0.0765). Default values are provided for typical rates.

5. Frequently Asked Questions (FAQ)

Q1: What are the current NY payroll tax rates?
A: FICA is typically 7.65% (6.2% Social Security + 1.45% Medicare). NY Unemployment varies by employer (0.2%-0.9%). Workers Comp varies by industry.

Q2: Are there additional NYC payroll taxes?
A: Yes, NYC has additional taxes like the Metropolitan Commuter Transportation Mobility Tax (MCTMT) for certain employers.

Q3: When are NY payroll taxes due?
A: Most are due quarterly, though large employers may pay monthly. Check NYS Department of Labor for current deadlines.

Q4: Do these rates change annually?
A: Yes, particularly unemployment insurance rates which are experience-rated. Always verify current rates.

Q5: Are there exemptions for small businesses?
A: Some exemptions may apply for very small businesses or certain industries. Consult a NY payroll tax specialist.