August 8, 2011

New York Imposes New Dependent Reporting Requirements on Employers

Presumably, in an effort to augment dependent health coverage, the State of New York has recently passed a law requiring that employers report both for new hires, and on a quarterly basis, the availability of dependent coverage. This applies to employers who have employees who work or reside in New York.

Beginning on July 15, 2011, employers in the State of New York must begin reporting certain information about the availability of dependent health insurance benefits for both new hires, and as part of their quarterly filing with the New York Department of Taxation and Finance.

New Hire Reporting. New York employers are required to report the following information within 20 days from the first day compensated services are performed by an employee:

  1. The employee’s name, address, and social security number;
  2. The employer’s name, address, identification number assigned by the IRS;
  3. The employee’s hire date; and
  4. Whether dependent health insurance benefits are available for employee; and if so, the date the employee qualifies for the dependent health benefit.

This information can be reported on either the IT-2104 or the IT-2104-E, whichever is applicable to the employee’s situation. For more information about new hire reporting requirements, please see the Department of Taxation and Finance’s New Hire Reporting page.

Quarterly Reporting.  New York employers that maintain an office, or transact business within the state, must withhold personal income tax and make a quarterly filing to the Department of Taxation. Beginning with the third fiscal quarter in 2011, a new entry area regarding whether dependent health insurance benefits are available to any employees will be included on the Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return (Form NYS-45). For more information about New York’s quarterly reporting requirements, please see Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax.

There is a penalty of $20 per day for failure to comply with this reporting requirement. Employers employing individuals who reside or work in the State of New York should make certain that this reporting requirement is accomplished.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

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