Question 1

Is PEO registration required in New York?

Accepted Answer

Yes. Under the Professional Employer Act (Labor Law Article 31), Section 919, a PEO shall not engage in business from offices in this state or provide professional employer services to persons in this state unless registered with the Department of Labor. The titles 'professional employer organization,' 'PEO,' and 'staff leasing company' are reserved to registered entities.

Question 2

What financial requirements do PEOs face in New York?

Accepted Answer

Under Labor Law Section 921, an applicant files audited financial statements prepared under GAAP showing a minimum net worth of $75,000, with a $75,000 bond permitted in lieu of the audited statement. Every quarter the PEO files a statement signed by an independent CPA certifying that federal and state payroll taxes were timely paid.

Question 3

How does PEO registration renewal work in New York?

Accepted Answer

Registration is annual — the Department of Labor requires each PEO to renew its registration or exemption status each year. Renewal also requires proof of workers' compensation and disability coverage, certification of tax payment, contract content, and the identity of clients.

Question 4

What is the SUI taxable wage base in New York?

Accepted Answer

The taxable wage base was $12,800 in 2025 and jumps to $17,600 in 2026 under a permanent formula: the base is 18% of the state average annual wage, rounded up to the next $100, and cannot decline year over year. The new employer rate is 4.1% (4.025% UI plus 0.075% Re-employment Service Fund), with an experience-rated range of 1.7% to 9.5%.

Question 5

What is the minimum wage in New York?

Accepted Answer

The 2026 minimum wage is $17.00 in New York City and Long Island/Westchester and $16.00 in the remainder of the state from January 1, 2026, with statutory tipped cash-wage schedules and inflation indexing beginning in 2027.

Question 6

How do taxes and benefits work under a PEO account in New York?

Accepted Answer

Under Section 923, a PEO pays unemployment insurance using its own state employer account number and contribution rate. Workers' compensation, disability benefits, and Paid Family Leave are sold through private carriers, NYSIF, or approved self-insurance. New York Paid Family Leave runs at a 0.432% 2026 employee contribution.

New York PEO FAQs: Registration, Compliance, and Costs

Frequently Asked Questions