Employer of Record in New York: what it costs in 2026
Every US employer pays the same federal payroll taxes. What changes in New York is the state unemployment charge, whether there is a paid leave contribution and the wage floor. The figures below are for the 2026 tax year and were checked against New York State Department of Labor on 2026-09-05.
New York at a glance
- Unemployment wage base
- $17,600
- New-employer rate
- 4.1%
- Employer paid leave
- Paid family leave 0.432%, employee-paid; the employer must also provide statutory disability cover
- Minimum wage
- $17.00 downstate, $16.00 in the rest of the state
Employer cost on a $100,000 salary
Statutory employer taxes only. Provider fees, benefits, workers compensation and any bonus sit on top.
| Charge | Basis | Per year |
|---|---|---|
| Social Security | 6.2% of the first $184,500 | $6,200 |
| Medicare | 1.45% of all pay | $1,450 |
| Federal unemployment tax | 0.6% of the first $7,000 after the state credit | $42 |
| State unemployment insuranceNew York | 4.1% of the first $17,600 | $722 |
| Total employer taxes | $8,414 | |
Federal floor and New York charges, separated
Open a line to see what makes it up and the source behind it, on the $100,000 salary above.
The same employee at other salaries
| Salary | Federal | New York | Total taxes | Share of salary |
|---|---|---|---|---|
| $60,000 | $4,632 | $722 | $5,354 | 8.9% |
| $100,000 | $7,692 | $722 | $8,414 | 8.4% |
| $150,000 | $11,517 | $722 | $12,239 | 8.2% |
The share of salary falls as pay rises because unemployment tax stops once the wage base is reached, while Medicare keeps running on every dollar.
The federal floor, identical in every state
- Social security
- 6.2% on the first $184,500 of pay
- Medicare
- 1.45% with no cap (a further 0.9% is employee-paid above $200,000)
- Federal unemployment
- 6.0% gross, 0.6% after the full state credit, on the first $7,000
Source: IRS Publication 15 (2026) and the Social Security Administration. Reviewed 2026-09-05. State figures: New York State Department of Labor, reviewed 2026-09-05. This page is general information, not legal or tax advice. See our methodology.
Where these figures come from
Each line says who published the figure and how firm it is. We never blend an official figure with an estimate.
| Figure | Published by | Kind of source | How firm |
|---|---|---|---|
| Unemployment wage base and rate | New York State Department of Labor | Official government figures | Confirmed on the official page |
| Employer paid leave | New York State Paid Family Leave | Official government figures | Confirmed on the official page |
| Minimum wage | New York State Department of Labor | Official government figures | Not confirmed, so it is left out of the total |
| Federal payroll taxes | IRS Publication 15 (2026) and the Social Security Administration | Official government figures | Confirmed on the official page |
Unemployment wage base and rate
Employer paid leave
Minimum wage
Hiring in New York through a provider
The taxes above are the same whichever provider you use. What differs is the monthly fee and whether the provider is already registered in New York.
Other states we cover in detail
Related
FAQ
On a $100,000 salary the statutory employer cost works out at about $8,414 a year, of which $7,692 is federal and $722 is charged by New York. Provider fees, benefits and workers compensation sit on top of that.
New York charges a new employer 4.1% on the first $17,600 of each employee's pay.
Paid family leave 0.432% is employee-paid; the employer must also provide statutory disability cover.
$17.00 downstate, $16.00 in the rest of the state. A county or city inside the state can set a higher floor, so check the local rate for the exact work location before you set pay.
Yes. Most international providers hold registrations in all 50 states, but registration and the first payroll run in a new state can take a couple of weeks, so confirm the provider is already set up in New York before signing.