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New York tax and labor law guide

Household employment requirements for families hiring a caregiver in New York

Finding helpful New York nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need! Check out the information below that HomePay is here to help with.

Checklist for New York household employers

We know you’re busy! Here’s a quick “to-do” list with links to extra details below.

Beginning of employment

During employment

  • Pay at least New York minimum wage weekly.
  • Pay overtime, when it applies.
  • Provide a paystub and keep payroll records each payday. 
  • Provide New York state and local required leave
    • Paid Family leave 
    • Job protected sick leave 
    • Paid time off  
    • NYC paid safe and sick leave 
    • Westchester paid sick leave
    • Westchester safe time leave

Optional benefits for your employee

Ending employment

Beginning of employment

Workers’ compensation, disability insurance, and paid family leave

Household employers in New York with full-time employees (40+ hours/week or a live-in employee) are required to get coverage for workers’ compensation insurance, disability insurance, and paid family leave.

Fines for non-compliance can be very high!

These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or by contacting our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.

Wage notice

New York employers must provide all household employees with a wage notice at the time of hire, on an annual basis, and when there is a change in pay rate or payday. Employers must get written acknowledgement of the wage notice from their employee and keep them on file for six years.

Employment posters

Families in New York are required to notify their employee(s) of their rights by sharing these posters.

Sexual harassment prevention training

New York household employers must establish a sexual harassment prevention policy.

During employment

New York wage requirements

Household employers in New York are required to pay their employees on a weekly basis.

Minimum wage rates

  • New York state: $12.50/hour.
  • New York City: $15.00/hour.
  • Nassau, Suffolk & Westchester County: $14.00/hour.

Note: Whenever more than one minimum wage rate applies, employers are required to pay the higher rate.

10+ hour shifts and split shifts

If your employee works more than 10 hours per day or their hours are split at any time during the day, additional requirements apply.

New York overtime requirements

  • Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
  • Live-in employees must be paid 1.5x their hourly rate for all hours worked over 44 in a workweek.
  • New York household employees must be allowed one day (24 hours) of rest per week. If an employee agrees to work on the 7th day, all hours worked that day must be paid at the overtime rate.

Payroll records

New York law requires employers to provide employees with a paystub each payday. You are required to keep up-to-date weekly payroll records of hours worked by your employees and wages paid for six years.

Paid family leave

Household employees in New York working 40 hours or more per week are eligible for paid family leave to help them bond with a child, care for a close relative with a serious health condition or help relieve family pressure due to active military service.

Job-protected sick leave

All employees in New York must accrue job-protected sick leave. Whether the leave is paid or unpaid depends on the number of employees you have and whether you are subject to a city or county paid sick leave law. HomePay will handle the accruals on your account.

Paid time off

After a year of employment, New York household employees must be provided paid time off.

  • 1 day of PTO for employees working 19 hours per week or less.
  • 2 days of PTO for employees working 20-29 hours per week.
  • 3 days of PTO for employees working 30 or more hours per week.

New York City paid safe and sick leave

Household employers in New York City are required to provide domestic workers with 40 hours of paid safe and sick leave per calendar year.

Westchester County paid sick leave

Westchester County employers must provide their household employee(s) with up to 40 hours of paid sick leave per year.

Westchester County safe time leave

Employers must allow employees up to 40 hours of paid leave per calendar year if they become victims of domestic violence or human trafficking. Time away is used to attend or testify in criminal or civil court proceedings or to move to a safe location. Employers cannot require their employee to find a substitute as a condition for using safe time.

Optional benefits for your employee

Health insurance

Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA)
  2. Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
  3. Purchase a policy through SHOP (Small Business Health Options Program). 

Visit our health insurance page for more information about these options.

Mileage reimbursement

The current federal mileage reimbursement rate is $0.56 per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.

Ending employment

Termination notice 

Household employers in New York are required to provide a termination notice to their employee if they are fired or laid off. Notice must be given no later than 5 working days after the termination.

Managing unused PTO 

New York household employers do not need to pay their employees for unused sick time. However, unless your employment contract states otherwise, unused vacation time must be paid out. 

The information contained in this article is general in nature, may not be applicable to your specific circumstances, and is not intended to be a substitute for or relied upon as personalized tax or legal advice.

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