Annual reports

Due to the provisions of the FUTA, special rules apply to certain types of payments. All employers other than nonprofit organizations, governmental entities, and Indian tribes must report and pay contributions on the following payments if they are liable under the FUTA:

compensation paid to daytime elementary and secondary school students, unless the students work for certain camps (see the Covered and excluded employment chart),

dismissal or severance pay,

the first six months of sick pay including disability payments (note: occupationally related workers’ compensation payments are not considered sick pay), and

reimbursed moving expenses.

These payments to employees may be reported by employers, other than nonprofit organizations, governmental agencies, and Indian tribes and UI based on them may be paid either quarterly on Form NYS‑45, Part A, or annually on Form IA7 or IA7A, Annual Supplementary Contributions Report . Form IA7 is used by employers with a total rate of 5.4% (0.054) or less and Form IA7A is used by employers with a total rate of more than 5.4% (0.054). The rate controlling which form to use may be affected by any reduction as described below. Annual reporting may result in savings for certain employers. Annual reports, available from the Department of Labor, Employer Account Adjustment Section (see Unemployment insurance issues – Where can I find the answers? ), are due on or before January 31 for wages paid during the prior calendar year. To satisfy wage reporting requirements (Part C of Form NYS‑45), employers must always include these payments on quarterly returns as provided in Gross wages for purposes of wage reporting regardless of whether the employer reports and pays UI contributions on these payments quarterly or annually.

It should be noted that if any state has borrowed federal funds in order to pay its benefits, the amount of the allowable credit may be subject to reduction. Federal Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return , will indicate if New York State is a credit reduction state.

Although nonprofit organizations, governmental agencies, and Indian tribes are not subject to Federal Unemployment, they are required to pay the state contributions quarterly on all student earnings, unless the organization or agency operates a certain type of camp (see the Covered and excluded employment chart). However, these employers are not required to report dismissal payments (severance pay) or sick pay.

Payments for services performed by college students are generally subject to contribution quarterly whether or not the employer is subject to the FUTA. In certain situations, work performed by college students is not covered employment and their earnings are not subject to contribution (see the Covered and excluded employment chart).

If you are not sure whether specific payments to employees are subject to contribution, contact the Department of Labor, Liability and Determination Section (see Unemployment insurance issues – Where can I find the answers? ).