New York withholding, UI, PFL, disability, MCTMT, and new hire rules for 2026.
New York payroll combines state withholding, possible New York City and Yonkers withholding, unemployment insurance, quarterly NYS-45 reporting, disability benefits, Paid Family Leave, new hire reporting, wage notices, and possible MCTMT exposure.
NYS, NYC, Yonkers
Use the 2026 NYS, NYC, and Yonkers withholding publications where applicable.
$17,600
NYS DOL lists the 2026 UI taxable wage base as $17,600.
1.7% to 9.5%
NYS DOL lists total 2026 UI rates from 1.7% to 9.5%, including RSF.
0.432%
For 2026, employee PFL contributions are 0.432% of gross wages, capped at $411.91 annually.
New York payroll taxes at a glance
| Topic | 2026 rule | Payroll action |
|---|---|---|
| State withholding | New York State withholding tables and methods were revised for payrolls made on or after January 1, 2026. | Use NYS-50-T-NYS (1/26) and current Form IT-2104 data. |
| New York City withholding | NYC resident withholding applies where relevant; Tax Department says the 2026 NYC publication continues to apply. | Identify NYC residency and apply NYS-50-T-NYC (1/26). |
| Yonkers withholding | Yonkers resident and nonresident withholding tables and methods apply where relevant. | Identify Yonkers residency/nonresidency and apply NYS-50-T-Y (1/26). |
| Unemployment insurance | 2026 UI wage base: $17,600. Total contribution rates listed by NYS DOL range from 1.7% to 9.5%. | Use the employer’s DOL rate notice and wage base in payroll setup. |
| New employer UI | NYS DOL lists the 2026 new employer total rate as 4.1% and the new employer normal contribution rate as 3.4%. | Use the assigned employer rate notice for production payroll. |
| Paid Family Leave | 2026 employee contribution rate: 0.432% of gross wages, annual cap $411.91. | Deduct PFL by pay period until the annual cap is reached. |
| Disability benefits | Employee DB contribution may be collected at 0.5% of wages, capped at 60 cents per week. | Coordinate DB deductions with the employer’s policy/carrier setup. |
| MCTMT | Applies to certain employers with more than $312,500 in quarterly payroll expense for covered MCTD employees. | Review Zone 1/Zone 2 location and payroll expense each quarter. |
Registration and core filing workflow
New York Tax Department guidance says employers hiring employees should obtain a federal EIN and then register with New York State through New York Business Express or the Department of Labor. Employers use online services to file withholding tax returns and quarterly combined withholding, wage reporting, and unemployment insurance returns.
- Get the federal EIN.
- Register for unemployment insurance, withholding, and wage reporting.
- Collect Form IT-2104 from employees for NYS, NYC, and Yonkers withholding where applicable.
- Set up NYS-45 quarterly filing and payment.
- Set up PFL, disability benefits, workers’ compensation, and new hire reporting workflows.
NYS-45, NYS-1, and quarterly due dates
New York uses Form NYS-45 for quarterly combined withholding, wage reporting, and unemployment insurance reporting. The Tax Department also uses Form NYS-1 for withholding tax payments. Most employers are required to file electronically unless notified otherwise.
| Quarter | Period | Typical due date |
|---|---|---|
| Q1 | January 1 through March 31 | April 30 |
| Q2 | April 1 through June 30 | July 31 |
| Q3 | July 1 through September 30 | October 31 |
| Q4 | October 1 through December 31 | January 31 |
New hire reporting and wage notices
New York employers must report newly hired or rehired employees working in New York State within 20 calendar days from the hiring date. Since January 1, 2022, New York also requires reporting certain independent contractor arrangements with contracts in excess of $2,500.
New York’s Wage Theft Prevention Act requires private-sector employers to give new hires a written pay notice and to provide wage statements each payday. Pay notices include details such as rate of pay, overtime rate if applicable, pay frequency, regular payday, employer name, employer address, and any allowances taken.
Disability benefits and Paid Family Leave
New York generally requires disability benefits and Paid Family Leave coverage for covered employees. Paid Family Leave coverage is typically a rider on an employer’s disability benefits policy. Employers may collect separate employee contributions for disability benefits and Paid Family Leave.
| Program | Employee payroll contribution | Payroll note |
|---|---|---|
| Disability Benefits Law | 0.5% of wages, capped at 60 cents per week, if the employer chooses to collect it. | Coordinate with the carrier and coverage setup. |
| Paid Family Leave | 0.432% of gross wages per pay period, capped at $411.91 annually for 2026. | Stop the employee deduction after the annual cap is reached. |
MCTMT review for covered employers
The Metropolitan Commuter Transportation Mobility Tax can apply to employers that are required to withhold New York State income tax and have more than $312,500 in quarterly payroll expense for covered employees in the Metropolitan Commuter Transportation District. The district is split into Zone 1 and Zone 2, with different rates by zone and payroll expense bracket.
New York is a payroll systems state.
The challenge is not one rate. It is correctly combining residency-based withholding, quarterly NYS-45 reporting, UI rates and wage base, PFL caps, disability deductions, new hire reporting, wage notices, and MCTMT exposure without letting one setup decision bleed into another.
New York payroll setup checklist
- Register for New York employer withholding, wage reporting, and unemployment insurance.
- Collect Form IT-2104 and identify NYS, NYC, and Yonkers withholding requirements.
- Enter the employer UI rate and the 2026 UI wage base.
- Set NYS-45 quarterly filing dates and withholding payment rules.
- Configure PFL deductions at 0.432% up to the annual cap.
- Configure disability benefits contribution rules if collected.
- Report new hires within 20 calendar days.
- Provide required pay notices and wage statements.
- Review MCTMT exposure for MCTD covered employees.
New York payroll FAQ
Does New York require state income tax withholding?
Yes. Employers may need to withhold New York State income tax and, depending on the employee, New York City or Yonkers withholding.
What is the New York UI wage base for 2026?
NYS DOL lists the 2026 UI taxable wage base as $17,600.
What is the New York PFL employee contribution for 2026?
The 2026 Paid Family Leave employee contribution is 0.432% of gross wages per pay period, with a maximum annual contribution of $411.91.
When are New York new hires due?
Newly hired or rehired employees working in New York State are due within 20 calendar days from the hiring date.
What is MCTMT?
MCTMT is a New York payroll-related tax for certain employers with covered employees in the Metropolitan Commuter Transportation District and quarterly payroll expense over the threshold.
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