If you’re hiring employees in New York State, you’re going to need to register your startup in that state. But there are also three other things you’ll need to do after you register for payroll in New York. Just registering for payroll is only the first step, so we are going to walk you through the other requirements you will need to complete to be fully compliant.
There are three other things to do after registration for payroll in New York and those are:
- Workers’ Compensation
- State Disability
- State Family Leave
All three of those things are required in order to be fully compliant with New York State. Let’s look at each one so you don’t miss anything.
First of all, in New York, workers' compensation is mandatory. You must havecoverage for all employees, including part-time employees and any family members employed by your startup. Your workers’ compensation insurance policy can come from a state-approved broker or insurance agency, the New York State Insurance Fund (NYSIF), or self-insurance, but you’ll be required to show proof of your policy to get business permits.
So how do you find an agency? A lot of the time, the payroll companies we work with are integrated,and this means you can use them.
If not, you can use someone else, like NYSIF, New York’s own public insurance carrier. NYSIF must provide insurance to any employer, regardless of the type of business or size. It’s really important to get this going right away. New York can issue some pretty big fines if you don’t get compliant, since you are supposed to have it set up as soon as you register.
Employee Disability Coverage
The second thing you have to set up, after you register for payroll in New York, is disability coverage. New York State requires employers to provide disability coverage to their employees for off-the-job illnesses or injuries. Again, your startup can get coverage from private insurance companies, NYSIF, or self-insurance.
Paid Family Leave
Paid family leave is also mandatory in New York State, and almost all employees are eligible for this benefit. Paid family leave allows employees to take paid time off from work to care for family members who have serious health conditions, like illnesses, impairments, injuries, and disabilities that involve hospital care or long-term treatment. Employees pay for this benefit through a small payroll deduction, or employers may opt to cover the cost themselves.
Get Started Right Away
Setting up these things can be complicated, so you should get started on it immediately. Again, New York State can impose penalties and fines if your startup isn’t compliant, and can hold your company responsible for the total value of any disability or family leave benefits paid during your period of noncompliance.
Of course, Kruze Consulting can help guide you through the process, but we will definitely need some help from you to complete your registrations and make sure you’re following the rules. If you have any questions on payroll, startup accounting, taxes. or venture capital please contact us. You can also follow our youtube channel and our blog for information about accounting, finance, HR, and taxes for startups!