Withholding tax requirements

Who must withhold personal income tax

If you are an employer as described in federal Publication 15, Circular E, Employer's Tax Guide, and you maintain an office or transact business within New York State, whether or not a paying agency is maintained within the state, you must withhold personal income tax.

• Out-of-state employers who are not incorporated or licensed under New York State law and do not maintain an office or transact business in New York State are not required to withhold New York State, New York City, or Yonkers income taxes on employees who reside in New York State.
• If an out-of-state employer agrees to withhold New York State, New York City, or Yonkers income taxes for the convenience of the employee, then the employer is subject to New York State withholding requirements.

Who you must withhold tax for

• New York State residents earning wages even when earned outside of the state
• New York State nonresidents being paid wages for services performed within the state
• New York City residents even when services are performed outside New York City
• Yonkers residents even when services are performed outside Yonkers
• Yonkers nonresidents on wages paid for services performed in Yonkers

Note: Employees who claim they are not a resident of New York State, New York City, or Yonkers must certify they are not a resident and estimate the percentage of their wages and other compensation attributable to services in New York State, New York City, or Yonkers. See Form IT-2104.1, New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax.

Resources

• Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
• Withholding tax rate changes
• Withholding publications and guidance
• Withholding forms and Instructions
• Jurisdiction/Rate Lookup by Address
• Wage reporting resources for withholding tax filers
• Guidance for employers affected by a W-2 phishing scheme
• E-mail subscription service

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