Payroll and Benefits Guide - United States - New York

United States - New York
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Currency

United States Dollar
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Capital

Albany
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Employer Taxes

16.261% – 24.061%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

New York is located in the northeastern part of the United States and is often referred to as the “Empire State.”

The state’s capital is Albany, but the most populous city is New York City, often called the “Big Apple.”

The Empire State Building in New York City is an iconic skyscraper and a popular tourist attraction.

Niagara Falls, located on the border of New York and Canada, is one of the most famous natural wonders in the world.

The Finger Lakes region in upstate New York is famous for its stunning lakes, wineries, and beautiful scenery.

The New York Stock Exchange, located on Wall Street in New York City, is the largest stock exchange in the world.

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Contributions

Employee Payroll Tax

Contribution TypeRate
Disability Insurance0.50%
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance2.10% – 9.90%
Unemployment- New Employer4.10%
Disability Insurance0.511%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% – 6.00%

Payroll

Payroll Cycle

Employees are paid monthly or semi-monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

A full-time work week is 40 hours or 8 hours per day.

Overtime

In New York, the Fair Labor Standards Act (FLSA) applies, and overtime pay is given for work exceeding 40 hours per week at 150% of the regular pay. Working on weekends or rest days generally doesn’t require extra payment unless under exceptional circumstances, in which case overtime pay is also at 150% of regular pay.

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Leave

Paid Time Off

There are no statutory laws on paid time off.

Public Holidays

There are 11 Public holidays

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

Maternity Leave

Maternity leave falls under the FMLA (see sick leave) which allows a mother:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Paternity Leave

Parental leave falls under the FMLA (see sick leave), which allows for:

  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Any qualifying necessity arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Parental Leave

Paternity leave falls under the FMLA (see sick leave), which allows fathers:

Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.”

Notice Period

New York follows an “at-will” employment policy, allowing termination without notice. There is no legal requirement for payout of unused vacation days, but employers usually compensate if given advance notice. Two weeks’ notice is commonly expected. The WARN Act mandates 60 days’ notice for mass dismissals.

Severance Pay

Except when outlined in an employment contract or collective bargaining agreement, employers are not required not make severance payments. However, many employers choose to offer severance pay and base the amount on the length of employment.

Probation Period

Probation Period

There are no provisions in the law regarding probation or trial periods. It is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

For Work Permits

H-1B

H-1B1

H-2A

H-2B

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VAT

New York has a minimum combined sales tax rate of 8.49% (state tax is 4.00% and local tax is 4.49%).