Federal/State Employment Tax (FSET) information for software developers

We've updated this page to include content for the upcoming changes to withholding tax and wage reporting

The Tax Department is streamlining withholding tax and wage reporting forms and Web File applications. Beginning March 2025, these improvements will affect the way you file.

For detailed information, see Significant changes coming to withholding tax and wage reporting. To stay up to date, check back frequently or subscribe to Withholding tax emails.

Important information regarding scheduling withholding tax payments and e-filing first-quarter 2025 returns

Due to the upcoming changes to withholding tax and wage reporting, you cannot currently schedule payments for dates after March 20, 2025, or electronically file first-quarter 2025 returns. When our changes are live, you will be able to resume scheduling payments and begin electronically filing first-quarter NYS-45 returns.

If you need to report you permanently ceased paying wages subject to withholding prior to March 20, 2025, you must submit a paper Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return.

New York State participates in the Federal/State Employment Taxes (FSET) program for quarterly withholding tax and unemployment insurance filings and payments.

Documentation

Currently, changes are scheduled to take effect on March 21, 2025.

For return filings before changes take effect

FSET handbook

Publication 120 helps software developers implement the FSET program with New York State. (updated February 15, 2019)

FSET error codes

See the reject codes that can cause New York State to reject FSET filings. (updated January 18, 2019)

NYS FSET field definitions and rules

See the NYS FSET spreadsheet for help completing fields. (updated January 18, 2019)

E-file signature document

The ERO will complete document TR-579-WT and tax preparation software must provide this document as well.

FSET schema

Use the FSET schema to develop your tax preparation software. (updated October 25, 2013)

FSET approved vendors

For a current list of vendors approved by New York State, please see Approved vendors for Federal/State Employment Taxes (FSET).

For return filings on or after changes take effect

FSET handbook

Publication 120 helps software developers implement the FSET program with New York State. (updated January 2025)

FSET error codes

See the reject codes that can cause New York State to reject FSET filings. (updated September 18, 2024)

NYS FSET field definitions and rules

See the NYS FSET spreadsheet for help completing fields. (updated September 18, 2024)

E-file signature document

The ERO will complete document TR-579-WT and tax preparation software must provide this document as well.

FSET schema

Use the FSET schema to develop your tax preparation software. (updated October 24, 2024)

FSET-approved vendors

Check back soon for a list of FSET software products you may use after the changes take effect.

Questions?

Send all questions to NYSTAXFSET@tax.ny.gov

Updated: February 5, 2025