NYS Unemployment Insurance Registration When Employing Spouse? (Payroll Setup)

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Topic Author
NicB
Posts: 38
Joined: Fri Nov 20, 2015 2:05 pm

NYS Unemployment Insurance Registration When Employing Spouse? (Payroll Setup)

Post by NicB »

Hi all-

Hoping someone can shed some light on NYS Unemployment Insurance requirements for me.

I run a sole-proprietorship, and have recently employed my spouse (my only employee). We're in New York State (not NYC). It's my understanding that we're responsible for employer/employee Payroll/FICA taxes, but exempt from:

-Federal Unemployment Tax (FUTA)
-NYS State Disability Insurance (SDI)
-NYS Paid Family Leave (PFL)
(The appropriate form has been filed with NYS Workers Compensation Board.)

I'm setting up Payroll using QuickBooks, and am unclear re: having to provide a NY UI Employer Registration Number.

Can someone let me know if we need to register / pay State Unemployment Insurance in New York State? Can you point to documentation re: the requirements?

If I do, I think I'm clear on how to get a NY UI Employer Registration Number, but can't determine if this applies to a sole proprietor whose only employee is a spouse.

Thanks!
Topic Author
NicB
Posts: 38
Joined: Fri Nov 20, 2015 2:05 pm

Re: NYS Unemployment Insurance Registration When Employing Spouse? (Payroll Setup)

Post by NicB »

I wound up doing more research, and I think I answered my own question. Updating here in case the archive is useful to someone else.

From NYS-50 - Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (December 2020), pg. 6:

Noncovered employment
The services of certain workers are not covered under the UI Law. Their
earnings are not subject to contributions, and they do not accrue rights
to unemployment benefits. The following is a list of specific exclusions
for various types of employers.
[...]
Sole proprietor, their spouse or child under the age of 21.
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