New York City Withholding Tax Tables And Methods

New York City Withholding Tax Tables And Methods - 2016 Page 3

NYS-50-T-NYC (1/16) Page 3 of 32

Important information

Changes for 2016

Employers who employ taxpayers subject to New York City personal income tax with taxable income over $500,000 must use revised

withholding tax computations. Accordingly, effective for payrolls made on or after January 1, 2016, employers who elect (or are

required) to use Method II, Exact Calculation Method, must use the revised exact calculation method(s) in this publication due to

changes in the line 7, Column 5 amounts in each of the Tables.

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Supplemental wage payment withholding rates

If you pay supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.) with regular wages but do not specify the

amount of each, withhold income tax as if the total were a single payment for a regular payroll period.

If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the income tax

withholding method depends partly on whether or not you withhold income tax from your employee’s regular wages:

• If you withhold income tax from an employee’s regular wages, you can use one of the following methods for the supplemental

wages:

a. Withhold at the New York City supplemental rate of 4.25% (.0425)

b. Add the supplemental and regular wages for the most recent payroll period this year. Then figure the income tax withholding

as if the total were a single payment. Subtract the tax already withheld from the regular wages. Withhold the remaining tax

from the supplemental wages.

• If you did not withhold income tax from the employee’s regular wages, use method b. (This would occur, for example, when the

value of the employee’s withholding allowances claimed on the Form W-4 is more than the wages.)

Also see federal Publication 15, Circular E, for a list of other payments that may be considered supplemental wages.

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