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REMOTE EMPLOYEES

Hiring a remote employee in New York

Your company is in another state and one employee lives and works from home in New York. Which state's taxes apply, unemployment, paid leave and New York's employer rules, each with its official source.

Facts checked on October 5, 2026 against the official sources listed at the end of this page. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

New York at a glance

Income tax
New York withholding
Reciprocity
None
Unemployment
$17,600 wage base, 4.1% new employer
Paid leave
Disability Benefits Law (DBL) insurance and New York Paid Family Leave (PFL)
New hire report
Within 20 days

Which state's taxes apply

Work state
New York taxes wages for work done in New York. Withhold New York income tax on the employee's wages.Source: NYS DTF, Withholding tax (opens in a new tab), checked October 5, 2026
Withholding form
Form IT-2104Source: NYS DTF, Form IT-2104 (2026), Employee's Withholding Allowance Certificate (PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
No state exempts New York residents from its withholding by reciprocity.Source: NYS DTF and DOL, Publication NYS-50 (12/25), Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Connecticut, Delaware, New Jersey or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in New York for the employee's convenience.Source: Connecticut DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 6, 2026; Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NJ Division of Taxation, Convenience of the Employer Sourcing Rule Enacted for Gross Income Tax (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in New York
New York has a 14-day rule: no New York withholding for a nonresident who works in New York 14 days a year or fewer, if the rule's other conditions are met.Source: NYS DTF, TSB-M-12(5)I, Withholding on Wages Paid to Certain Nonresidents Who Work 14 Days or Fewer in New York State (July 5, 2012, PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in CaliforniaMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • New York: all wages.

No California withholding: the employee does no work in California.

Unemployment

New York: the employee works from home there, so the work is localized in New York.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in New York, so the work is localized in New York: pay New York unemployment tax, not your company state's.

Agency
New York State Department of Labor (Unemployment Insurance Division)Source: NYS DOL, Unemployment Insurance Information for Employers (opens in a new tab), checked October 5, 2026
Wage base
$17,600 IndexedSource: NYS DTF and DOL, Publication NYS-50 (12/25), Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (opens in a new tab), checked October 5, 2026
New employer rate
4.1% 4.1%: 3.4% normal rate plus 0.625% subsidiary rate (4.025% UI rate) plus the 0.075% Re-employment Services Fund Surcharges includedSource: NYS DOL, Unemployment Insurance Rate Information (Current 2026 Employer Contribution Rate) (opens in a new tab), checked October 5, 2026

Open the account: New York payroll tax registration

Disability Benefits Law (DBL) insurance (opens in a new tab)

Status
ContributingSource: NYS Workers' Compensation Board, Disability Benefits and Paid Family Leave Insurance (employers) (opens in a new tab), checked October 5, 2026
Total rate
Set by the insurer or planSource: NYS Workers' Compensation Board, Disability Benefits and Paid Family Leave Insurance (employers) (opens in a new tab), checked October 5, 2026
Employee share
Up to 0.5%Source: NYS Workers' Compensation Board, Disability Benefits and Paid Family Leave Insurance (employers) (opens in a new tab), checked October 5, 2026
Employer share
Set by the insurer or planSource: NYS Workers' Compensation Board, Disability Benefits and Paid Family Leave Insurance (employers) (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: New York Workers' Compensation Law §202 (opens in a new tab), checked October 5, 2026

New York Paid Family Leave (PFL) (opens in a new tab)

Status
ContributingSource: NY Paid Family Leave, Updates for 2026 (opens in a new tab), checked October 5, 2026
Total rate
0.432% 0.452% from January 1, 2027Source: NY Paid Family Leave, Updates for 2026 (opens in a new tab), checked October 5, 2026
Employee share
Up to 0.432% 0.452% from January 1, 2027Source: NY Paid Family Leave, Updates for 2026 (opens in a new tab), checked October 5, 2026
Employer share
NoneSource: NY Paid Family Leave, Cost and Deductions (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: NY Paid Family Leave, Employer Responsibilities and Resources (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on New York payroll tax registration.

New York employer rules

Employment law applies where the employee works, so these follow the employee into New York.

Final pay
Fired: By the regular payday for the pay period in which employment ended; by mail if the employee asks Quit: Same as firedSource: New York Labor Law §191, Frequency of payments (opens in a new tab), checked October 6, 2026
Pay frequency
Manual workers weekly, within 7 days after the week ends (semi-monthly only for non-profits or large employers authorized by the Labor Commissioner); clerical and other workers at least semi-monthly on regular paydays set in advance; commission salespeople at least monthly.Source: New York Labor Law §191, Frequency of payments (opens in a new tab), checked October 6, 2026
Pay notice
Written pay notice at hire (Labor Law §195(1)) in English and the employee's primary language (where DOL has a template), with a signed and dated acknowledgement kept six years; changes at least 7 calendar days before they take effect unless shown on the wage statement.Source: New York Labor Law §195; NYS DOL, Wage Theft Prevention Act FAQ (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: NYS DTF and DOL, Publication NYS-50 (12/25), Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax, section 5, New hire reporting requirements (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employers or public contractorsSource: NY Senate, Open Legislation, Consolidated Laws statute search: "E-Verify" (opens in a new tab), checked October 5, 2026
Sick leave
Sick leave required, from the first employee. 4 or fewer employees and net income of $1 million or less: up to 40 hours unpaid. 4 or fewer employees and net income over $1 million: up to 40 hours paid. 5 to 99 employees: up to 40 hours paid. 100 or more employees: up to 56 hours paid.Source: New York State, New York Paid Sick Leave; Labor Law §196-b (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in New York, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on New York

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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