(a) An election by an employer pursuant to and in accordance with subdivision 2 of section 561 of the Unemployment Insurance Law may be filed only by an employer liable for contributions under the law. The approval of such an election is subject to the conditions:

1. (1) that a separate election in writing on a form furnished by the Department of Labor be filed with respect to each employee; and

2. (2) that the services of the employee for the employer are deemed employment subject to the law beginning with the effective date prescribed in subdivision (b) of this section and will continue to be deemed such employment until:

   1. (i) the employee ceases to be a resident of New York; or
   2. (ii) contributions are required with respect to the employee's services for the employer on a compulsory basis under the unemployment compensation law of any other state or of the Federal government.