Covered employment

Individual proprietors are not employees, and their earnings are not reportable or subject to contributions. However, officers of all corporations, including professional, subchapter S and other closely held corporations, who perform services for the corporation are employees of that corporation. Their compensation for these services is reportable and subject to contributions.

Note: Previously, members of a Limited Liability Company (LLC) were not considered employees, and their earnings were not reportable or subject to unemployment insurance contributions. However, recent decisions of the New York State Unemployment Insurance Appeal Board have held that members of an LLC that has elected S Corporation tax treatment for New York State purposes are employees of that LLC for unemployment insurance purposes. Accordingly, their compensation is reportable and subject to contributions. Members of an LLC that has not elected S Corporation tax treatment for New York State purposes are not considered employees and their earnings are not reportable or subject to contributions.

Employment specifically covered under the UI Law includes:

Agent or commission drivers engaged in distributing meat, vegetables, fruit, or bakery products; beverages (other than milk); laundry or dry-cleaning services.

Traveling or city salespersons who work full‑time soliciting orders for merchandise for resale or use in the purchaser’s business operations.

Professional musicians or persons otherwise engaged in the performing arts, who perform services as such for a television or radio station or network, a film production, a theater, hotel, restaurant, nightclub or similar establishment unless, by written contract, such musicians or persons are stipulated to be employees of another employer.

Professional models who perform modeling services for, or who consent in writing to transfer use of their name or likeness for purposes of advertising or trade to, a person or entity that dictates assignments, hours of work or performance location and that compensates them, in return for a waiver of their privacy rights, unless the services are performed under a written contract that states the model is an employee of another covered employer.

Fellow, resident, and intern physicians who perform services for a health care facility, including academic medical centers.