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New Hire Reporting to NYS Extended to Some Independent Contractors

Berdon State and Local Tax Team

3.21.22 | Client Alert

Effective January 1, 2022, employers are required to report individuals under an independent contractor arrangement with contract(s) in excess of $2,500 to the New York State Department of Taxation & Finance. Previously the new hire reporting requirement which applied to employees did not cover independent contractors.

Who Must Report New Hires?

You must report new hires if you are an employer for federal income tax withholding purposes.

  • This includes:
    • employers of domestic help,
    • labor organizations (including hiring halls), and
    • governmental entities (except for federal agencies, which report directly to the National Directory of New Hires).

Due Dates to Report the Newly Hired or Rehired

Employers must report newly hired or rehired employees (including certain independent contractors as noted above) who will be employed or working in New York State within 20 calendar days from the hiring date. The hiring date is the first day the employee or independent contractor:

  • performs any services for which they will be paid wages, tips, commissions, or any other type of compensation
  • is eligible to earn commissions for services based solely on commissions.

For additional requirements and details, including how to file, please visit: https://www.tax.ny.gov/bus/wt/newhire.htm

For frequently asked questions, please visit: https://www.tax.ny.gov/bus/wt/newhire_faq.htm

If you have any other questions, please reach out to your Berdon Advisor.