New York State Department of Labor - UI

New York State Covered and Excluded Employment

Employment is any service performed under a contract of hire, either written or oral. An employee is a worker who performs services for compensation under the supervision, direction and control of an employer. Unless specifically excluded by law, all employment performed for a liable employer is covered whether it is on a part-time, full-time, temporary, seasonal, or casual basis. Employees may perform services on or off the employer's premises or in their own homes. Industrial homeworkers are considered employees under the State Labor Law.

Non-covered employment: The services of certain employees are not covered under the Unemployment Insurance Law. Their earnings are not taxable, and they are not entitled to unemployment benefits based on such services.

Covered and Excluded Employment under the UI Law

Type of employment	Covered or excluded under UI Law
Agricultural laborers	Covered employment if services are performed for a liable agricultural employer. See pamphlet.
Aliens	1. Covered employment if services are performed by an alien lawfully present in the United States for the purpose of performing such work or lawfully admitted for permanent residence in the United States. 2. Illegal aliens may not collect benefits. However, any remuneration paid to them is taxable.
Baby-sitters under the age of 18	Excluded unless performed for non-profit organizations, governmental entities or Indian tribes.
Caretakers at a place of religious worship and Individuals employed at a place of religious worship for the performance of duties of a religious nature	Excluded employment unless the employer has elected voluntary coverage for such services.
Casual laborers	Covered employment
Casual laborers under the age of 21 doing yard work and household chores in and around a residence not involving the use of power-driven machinery	Excluded employment unless performed for non-profit organizations, governmental entities or Indian tribes.
Children under the age of 14	Excluded employment unless performed for non-profit organizations, governmental entities or Indian tribes.
Corporate officers	Officers of all corporations, including professional, Subchapter S and closely-held corporations, who perform services for the corporation are employees. Any compensation for these services, including dividends or distributions, is taxable. For benefit information, click here.
Domestic employees	Personal or domestic services performed in the home are in covered employment (with certain exceptions). See pamphlet.
Drivers - agent-drivers and commission-drivers distributing meat, vegetables, fruit or bakery products; beverages other than milk; or laundry or dry-cleaning.	Covered employment
Family members:
Children under 21 of a sole proprietor	Excluded employment (includes step-children)
Spouse of sole proprietor	Excluded employment
Child/spouse of partner	Covered employment
Any family member of a corporate officer employed by the corporation	Covered employment
Golf caddies	Excluded unless performed for non-profit organizations, governmental entities or Indian tribes.
Government employees and employees of Indian tribes .	The following types of employment for governmental entities and Indian tribes are excluded: elected officials members of legislative bodies or of the judiciary members of the NYS National Guard or Air National Guard, except a person who renders such services as a regular state employee individuals hired on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency inmates of custodial or penal institutions officials in major, nontenured policymaking or advisory positions individuals in policymaking or advisory positions whose official duties do not require more than eight hours per week to perform
Homeworkers	Covered employment
Independent contractors	Excluded employment. See pamphlet.
Individual proprietor	Earnings are not taxable and services cannot be covered on a voluntary basis.
Inmates of custodial or penal institutions	Excluded when services are performed for non-profit organizations, governmental entities or Indian tribes.
Maritime employees	Covered employment if services are performed within or primarily within NYS waters. Services in interstate or foreign commerce are covered in NY if performed on vessels of American registry which are normally managed and controlled from an office in New York State.
Members, limited liability organization	Earnings are not taxable and services cannot be covered on a voluntary basis.
Members of the clergy/ordained ministers Members of religious orders Lay members elected or appointed to an office within a bona fide church and engaged in religious functions	Excluded employment when services are performed for non-profit organizations.
Models	Covered employment under certain conditions.
Musicians	See Department guidelines.
Out-of-state employees	Generally, services performed entirely outside NYS are excluded. However, if such services are not covered under the laws of any other state, they are covered under NYS law if performed: (1) outside the United States (except Canada and the Virgin Islands) by a citizen of the US for an American employer whose principal place of business is located in NYS; (2) within the United States, Canada or the Virgin Islands, if the place from which the services are directed and controlled is in New York State. If none of these conditions apply, and the services are performed by a NYS resident, an employer may elect to voluntarily cover the services. See pamphlet.
Partners	Earnings are not taxable and services cannot be covered on a voluntary basis.
Part- time employees	Covered employment, unless specifically excluded
Performing artists	See Department guidelines.
Physician - fellow, resident and intern	Effective December 23, 2002, fellow, resident and intern physicians are covered when performing services for a health care facility, including academic medical centers.
Railroad workers subject to the Federal Railroad Unemployment Insurance Act	Excluded employment
Rehabilitation program participants	Excluded employment if services are performed for a non-profit organization by an individual receiving rehabilitative services in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury
Sheltered workshop participants - individuals given remunerative work	Excluded employment if services are performed for a non-profit organization by an individual given remunerative work in a facility conducted for the purpose of providing such work for persons of impaired physical or mental capacity.
Salespeople:
Traveling or city salespeople who work full-time soliciting orders for merchandise for resale or supplies for use in the purchaser’s business operations	Covered employment if: substantially all of such work is to be performed personally the salesperson does not have a substantial investment in facilities used in connection with the performance of such services, except the facilities for transportation the salesperson has a continuing relationship with the employer
Licensed real estate brokers and sales associates	Excluded employment if substantially all of the remuneration for the services performed is directly related to sales or other output rather than to the number of hours worked, and the services are performed pursuant to a written contract containing certain provisions.
Licensed insurance agents or brokers	Excluded employment if substantially all of the remuneration for the services performed is directly related to sales or other output, rather than to the number of hours worked, and the services are performed pursuant to a written contract containing certain provisions. See Department guidelines .
Seasonal employees	Covered employment unless specifically excluded
Shared employees - joint employment	1. Taxes are required only on the first $8,500 of the total annual earnings of a person jointly employed by two or more employers if the employers are financially related. 2. Employers who are not financially related and who share the services of a single employee are required to report and pay the tax on their own share of the employee's earnings. Each employer is liable for taxes up to the annual taxable limit of $8,500 on its share.
Students:
College and other post-secondary students	Covered employment unless specifically excluded
Elementary and high school students	1. Covered employment only if performing services for non-profit organizations, governmental entities or Indian tribes. 2. Excluded employment when in regular daytime attendance if employed by other than nonprofit organizations, governmental entities or Indian tribes. However, if the employer is subject under FUTA, the earnings of elementary and high school students must be reported (either quarterly or annually).
Students enrolled and in regular attendance in the educational institution that employs them or their spouses	Excluded employment. The spouse’s employment is excluded if the spouse is notified when hired that that the employment is provided under a program of financial assistance to the student and will not be covered for unemployment insurance purposes.
Students enrolled at a non-profit or public educational institution in certain work-study programs that combine academic instruction and work experience	Excluded employment
High school or post-secondary school students employed by an organized camp	Excluded employment if: the student is enrolled as a full-time student, or if between academic years or terms, there is reasonable assurance that the student will be enrolled full-time during the succeeding year or term the student works less than 13 weeks and certain other conditions have been met See pamphlet.
Temporary employees	Covered employment unless specifically excluded
Youth service program participants	Excluded employment if performed for non-profit organizations under certain conditions

Questions regarding a determination of worker status should be directed to the Liability and Determination Section at 518 457-2635.