I employ students during summer vacation. Are their wages subject to UI taxes?
Wages paid to college students are treated in the same manner as wages paid to any employee. High school student wages are also taxable to New York State, only because they are taxable under the Federal Unemployment Tax Act (FUTA). Please note, however, that they are only taxable if the employer is subject to FUTA. Also, high school and elementary school students who are employed by nonprofit organizations and governmental entities are covered by unemployment insurance and are entitled to collect benefits in certain circumstances. Further information can be found in Form IA 318.10, which can be obtained by calling (518) 485-8589. For further information on FUTA, you should contact the Internal Revenue Service.
