Form Nys-50 - Employer'S Guide To Unemployment Insurance, Wage Reporting, And Withholding Tax Page 13
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52NYS-50 (1/14) Page 13 of 52
If two or more financially related corporations concurrently employ the
and unemployment contributions based on them may be paid, either
I
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same individual(s) and pay such concurrently employed individual(s)
quarterly on Form NYS-45, Part A, or annually on Form
A7 or
A7A,
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through a common paymaster, which is one of such corporations, the
Annual Supplementary Contributions Report. Form
A7 is used by
common paymaster may report and pay UI contributions under its own
employers with a UI rate (normal plus subsidiary) of 5.4% or less and
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account on the wages paid to each concurrently employed individual up
Form
A7A is used by employers with a UI rate of more than 5.4%.
to the annual wage base amount. However, if reporting by the common
The rate controlling which form to use may be affected by any
paymaster has not been approved for FUTA purposes, then each of the
reduction as described below. Annual reporting may result in savings
employers must report its share of the wages paid to the concurrent
for certain employers. Annual reports, available from the Department
employee(s), but pay contributions only on the amount up to the annual
of Labor, Employer Account Adjustment Section (see Unemployment
wage base amount in the aggregate.
insurance issues — Where can I find the answers? on page 46), are due
on or before January 31 for wages paid during the prior calendar year.
Reporting tips and meals
To satisfy wage reporting requirements (Part C of Form NYS-45 or
Form NYS-45-ATT), employers must always include these payments
Tips employees receive in connection with services performed
on quarterly returns as provided in Gross wages for purposes of wage
are subject to contributions and must be reported. Employers are
reporting on page 25, regardless of whether the employer reports
required to advise their employees that they have the right to certify to
and pays unemployment insurance contributions on these payments
the amount of tips they receive. A certification is a signed and dated
quarterly or annually.
statement furnished by the employee to the employer not less than once
each calendar quarter indicating the amount of tips received.
It should be noted that if any state has borrowed federal funds
in order to pay its benefits, the amount of the allowable credit
The reasonable cash value of board, rent, housing or lodging is subject
may be subject to reduction. Federal Form 940 will indicate if
to contributions and must be reported. An employer may not report a
New York is a credit reduction state. Information regarding any
lower cash value for meals and lodging than the value placed on them in
reduction in the allowable credit is also available on our Web site at
complying with minimum wage orders.
Further information is available in our pamphlet, Reporting
Although nonprofit organizations, governmental agencies, and Indian
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Meals, Lodging, Tips and Other Forms of Remuneration,
A 318.15.
tribes are not subject to Federal Unemployment, they are required to
pay the state contributions quarterly on all student earnings, unless the
Payments to employees not reportable
organization or agency operates a certain type of camp (see the chart on
Remuneration does not include the following, which are not subject to
page 10). However, these employers are not required to report dismissal
contributions and should not be reported:
payments (severance pay) or sick pay.
1. Payments made by a sole proprietorship to the sole proprietor, to
Payments for services performed by college students are generally
his or her spouse or minor (under age 21) child, and payments
subject to contribution quarterly whether or not the employer is subject to
made by a partnership to the partners.
FUTA. In certain situations, work performed by college students is not
2. Any payment made under a plan or system providing for retirement,
covered employment and their earnings are not subject to contribution
sickness, or accident disability, or medical or hospital expenses for
(see the chart on page 10).
an employee or an employee’s dependents, including amounts paid
If you aren’t sure whether specific payments to employees
for insurance, annuities, or into a fund to provide for the payments
are subject to contribution, contact the Department of Labor, Liability
(see Annual reports below for exceptions).
and Determination Section (see Unemployment insurance issues — Where
3. Payments made by an employer, without payroll deductions, of
can I find the answers? on page 46).
taxes required from employees under the Social Security Act.
Enforcement
4. Insurance or annuity payments to an employee for retirement.
5. Payments made to an employee on account of sickness or accident
Audit and investigation — The Department of Labor conducts audits of
disability after six complete calendar months following the month in
employers as authorized by section 575 of the Unemployment Insurance
which the employee last worked.
Law. Audits ensure compliance and accuracy in coverage of workers,
reporting of wages, and payment of contributions due. These activities
6. Payments from or to a trust described in IRC section 401(a) that is
help to keep UI rates low and provide for fair and equitable treatment of
exempt from tax under IRC section 501(a).
all employers. Questions regarding audits and investigations should be
7. Payments made to an employee, except vacation or sick pay,
referred to your local unemployment insurance employer services office
beginning with the month following the 65th birthday, for any period
(see page 48).
in which the employee did not actually work.
Consequences of late or inaccurate reporting — It is important to
8. Dismissal payments (see Annual reports below for exceptions).
file a return for each quarter, even if there is no payroll in a particular
9. Compensation paid to daytime students in elementary and
quarter, to avoid penalties and to ensure that the most accurate UI rate
secondary schools who work for other than nonprofit organizations
is assigned. (See Seasonal employers on page 12 for an exception.)
or governmental or Indian tribal entities. This includes payments for
Contributions paid more than 60 days after their due date are not credited
working during vacation periods and holidays (see Annual reports
to the employer’s experience rating account. As a result, they are not
below for exceptions).
considered in the computation of the employer’s UI rate. This means that
an employer is likely to be assigned a UI rate that is higher than if the
10. For household employers: payments to babysitters under 18 years
contributions were paid on time. Also, failure to file a return may result in
of age.
a penalty (see Summary of penalties on page 35).
11. Payments by certain organized camps for services of a student who
is enrolled full time in an educational institution.
Employers who do not pay unemployment insurance contributions when
due are charged interest at the rate of 12% per year on the unpaid
Annual reports
balance. Interest is assessed from the date payment was originally due
and may not be waived or reduced.
Due to the provisions of FUTA, special rules apply to certain types
of payments. All employers other than nonprofit organizations,
If an employer fails to file a required return or files an inaccurate return,
governmental entities, and Indian tribes must report and pay
and then fails to comply with a written request for a corrected or sufficient
contributions on the following payments if they are liable under FUTA:
return (within 30 days of the request), the Commissioner of Labor will
(1) compensation paid to daytime elementary and secondary school
estimate the amount of the contributions due and wages paid based on
students, unless the students work for certain camps (see chart on
available information. The estimated wages will be used in the calculation
page 10), (2) dismissal or severance pay, (3) the first six months of
of future unemployment insurance rates and may adversely impact
sick pay including disability payments (note: occupationally related
the rate. Failure to file all quarterly returns completely and accurately
workers’ compensation payments are not considered sick pay), and
may result in the assessment of additional penalties (see Summary of
(4) reimbursed moving expenses.
penalties on page 35).
These payments to employees may be reported by employers, other
Collection of overdue contributions — The Department of Labor
than nonprofit organizations, governmental agencies, and Indian tribes
takes its duty to collect delinquent contributions seriously. There are
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