Businesses in New
York State that are corporations or have employees are required to carry
Worker's Compensation and disability insurance. Worker's Compensation
and disability insurance coverage for sole proprietorships and partnerships
without employees is optional. In addition, corporations and businesses
with employees are subject to Federal and State Unemployment Insurance
regulations. Although not mandatory, other types of insurance commonly
carried by businesses are property insurance and liability insurance.
Workers Compensation, paid by the employer, insures that employees are
covered in case of serious sickness or injury in non-employment related
accidents or illnesses. This coverage is not mandatory for sole proprietorships
or partnerships that do not have employees. Employers may choose to offer
additional insurance. For further information visit the Disability
This type of
insurance insures employers against liability from personal injuries or
death of employees during the course of employment. This insurance is
paid by the employer and is required by the Workers
Compensation Law. This is optional coverage for sole proprietorships
and partnerships with no employees.
Employers may obtain
coverage through private insurance companies or the State Insurance Fund.
Information for employers pertaining to select laws, rules, regulations,
compliance, and premium information is available at the NYS
Workers' Compensation Board.
policies cover business losses to their own property. Areas of coverage
include buildings, equipment and building contents. Voluntary coverage
may be obtained through private insurers.
Liability insurance is voluntary and offers protection from economic losses,
due to damage of another's property, unintentional injury or death.
The Federal Unemployment Tax Act (FUTA) is part of the federal and state
program that pays unemployment compensation to workers who lose their
jobs. You as an employer report and pay FUTA tax separately from social
security and Medicare taxes and withheld income tax. You pay FUTA tax
only from your own funds. Employees do not pay this tax or have it withheld
from their pay.
For more information
and to obtain necessary forms, link to the Internal
Revenue Service website.
Liability for Unemployment
Insurance Under NYS Law
Different employer types have different liability for contributions under
the Unemployment Insurance Law. In addition, the rules regarding termination
of liability are different for each employer type. Once an employer is
determined liable, a NYS-45,
Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance
Return is required to be filed with the appropriate taxes due. A quarterly
return must be filed even if no wages were paid in a quarter or no tax
is due for either New York State Department of Labor or New York State
Department of Taxation and Finance, or both. For additional information
regarding state unemployment insurance contact the New
York State Department of Labor.
Under Common Law
Generally, a worker who performs services for you is your employee if
you can control what will be done and how it will be done. Unless specifically
excluded by law, all employment performed for a liable employer by employees
is covered whether it is on a part-time, full-time, temporary, seasonal,
or casual basis. Employees may perform services on or off the employer's
premises or in their own homes. Home workers are considered employees
under the State Labor Laws. Obtain Publication
15-A, Employer's Supplemental Tax Guide, for more information determining
whether an individual providing service is an independent contractor or
an employee. Generally, people in business for themselves are not your
employees if they perform work under contract to you (i.e. accountants,
consultants, tradesman, etc.)
To learn more on Unemployment
Insurance link to the website: Protecting
Other insurance coverage available to businesses include individual and
group medical insurance, life insurance, business interruption, and Contract
Surety Bonds (these bonds are usually required by contractors on federal,
state, or local government jobs).