New York Requires Independent Contractor New Hire Reporting
New York is reminding employers that effective January 1, 2022, hiring entities are required to report individuals under an independent contractor arrangement with contracts in excess of $2,500 for new hire reporting purposes, within 20 days of the contract [S.B. 346, L. 2021]. The state encourages employers to report all independent contractors regardless of the contract amount, but this is not required by law.
What Must Be Reported
For independent contractors, employers must provide the following information:
- Independent contractor name (first, middle, last)
- Independent contractor address (street, city, state, and zip code)
- Independent contractor social security number
- Contract date
- Employer name, address, and federal employer identification number (FEIN)
Reporting Methods, Penalties
Employers that are required to report to New York and multistate employers that designate New York as the reporting state must use the online New York New Hire Online Reporting Center to report independent contractors.
State law allows a $20 penalty for each independent contractor not reported in a timely manner and a $20 penalty for each independent contractor for whom the employer fails to file a report showing the required information (e.g., false or incomplete reports).
More information is available on the New York Department of Taxation and Finance's website. A New Hire Reporting Fact Sheet from New York State Child Support is also available.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.