Who is an Employee?
Every person engaged in helping you run your business in New York State can be considered an employee. You may call them an owner, partner, associate, agent, manager or solicitor, but they are still an employee. Members of your family that perform work for your business may be employees. It doesn't matter if they work full-time, part-time, permanent or temporary, for a wage, salary, commission or room and board.
The owner of a sole proprietorship is not considered an employee of the business.
Employee Tax Forms
All new employees should fill out an I-9 form.
The W-4 form lets you figure how much tax to withhold from your employee's paycheck.
But what about contractors?
You may hire someone to perform work for you as a contractor. New York State law is very specific about when you can classify someone as a contractor.
- Set their own rates and hours
- Pay their own expenses, including marketing their services to other businesses
- May subcontract their work or refuse work
Learn more by visiting the Department of Labor's site.
New York State Department of Labor
The New York State Department of Labor has many other resources to help you hire, train, and manage your employees effectively. Find out more on their website.