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Understanding New Employer Reporting Requirements for New York State
As of January 1, 2022, New York employers must report new hires who are listed as independent contractors and have contracts worth more than $2,500 to the New York State Department of Taxation and Finance. Previously, you were not mandated to include independent contractors under the state’s new hire reporting requirement; now you’ll have to add them to the list of other new hires or rehires to report. If your organization falls into one of the following categories, you’re required to report your new hires for tax purposes:
- Labor organizations, including union-operated placement offices (I.e., hiring halls),
- Employers of individuals performing domestic services,
- Government entities excluding federal agencies.
- Is eligible to collect commissions for any job performed based only on commissions,
- Completes the services for which they will be paid (collecting tips, wages, commissions, or another agreed-upon compensation).