Form Nys-50 - Employer'S Guide To Unemployment Insurance, Wage Reporting, And Withholding Tax Page 26
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52Page 26 of 52 NYS-50 (10/11)
3. Tax Department — Withholding information and instructions
A. Purpose
A responsible person may be an individual, corporation, partnership
or limited liability company (LLC), or an officer or employee of any
This section provides a summary of an employer’s responsibilities for
corporation (including a dissolved corporation), or a member or
withholding New York State income tax, New York City resident tax,
employee of any partnership, or a member or employee of an LLC, who
Yonkers resident tax surcharge and Yonkers nonresident earnings tax.
as such officer, employee, manager, or member has a duty to deduct,
For specific information regarding filing requirements, due dates, and
account for, and pay over income tax withheld.
completion of forms, see the instructions for the particular withholding
form(s) needed.
E. Income subject to withholding
For withholding tax purposes, New York State generally conforms to
Compensation that is regarded as wages for federal income tax
federal withholding tax concepts.
withholding purposes, including tips, supplemental unemployment
compensation benefits, deferred compensation, and nonstatutory stock
B. Employer for withholding purposes
options, is generally regarded as wages for purposes of withholding New
An employer is any person or organization qualifying as an employer on
York State income tax, New York City resident tax, Yonkers resident tax
the basis of the instructions contained in federal Publication 15, Circular
surcharge, and Yonkers nonresident earnings tax unless an allocation
or exception is specifically required or provided for New York State, New
E, Employer’s Tax Guide, and maintaining an office or transacting
business within New York State, whether or not a paying agency is
York City, or Yonkers purposes.
maintained within the state.
Benefits provided to same-sex married employees — Certain
benefits provided to a same-sex married employee are not considered
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
wages subject to withholding for New York State, New York City, or
Yonkers income tax purposes (for example, health benefits that are
York State are not required to withhold New York State, New York City, or
Yonkers income taxes on the wages of employees who reside in New York
treated as domestic partner health benefits for federal tax purposes),
State. However, if an out-of-state employer agrees to withhold New York
even though they are subject to federal withholding. This applies if
State, New York City, or Yonkers income taxes for the convenience of the
the employee’s federal taxable wages subject to withholding include
employee(s), the employer is then subject to New York State withholding
the value of the benefits, and the value of these benefits wouldn’t be
requirements as outlined in this publication. If the employer does not
included in taxable wages if provided to a different-sex married spouse.
withhold New York State, New York City, or Yonkers income taxes, the
See part I, Annual wage and withholding totals, on page 25 for reporting
employee may be required to make estimated payments of such income
annual wage totals for same-sex married employees.
taxes using Form IT-2105, Estimated Income Tax Payment Voucher for
With the exception of certain annuity payments, income that is reported
Individuals.
on federal Forms 1099 is not subject to New York State withholding tax
and there are no provisions in the Tax Law for such withholding. Pension
C. New York State employer’s identification
and annuity income reported on federal Form 1099-R, Distributions
number
From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc., is subject to withholding if the annuitant
For your convenience, the New York State, New York City, and Yonkers
requests New York State, New York City, or Yonkers withholding by filing
identification number is the same as the federal employer identification
Form IT-2104-P, Annuitant’s Request for Income Tax Withholding, with
number (EIN) if one has been assigned to you by the Internal Revenue
the payer. For more information on income tax withholding on annuities,
Service (IRS).
see part P, Determining withholding tax, on page 30, and the instructions
Each employer must have only one federal identification number. If you
for Form IT-2104-P.
have been assigned more than one federal identification number and
Employers of domestic (household) help — Withholding income
have not been advised which one to use, notify the IRS of the numbers
tax from wages paid to household employees is voluntary on your
you have, the name and address to which each number was assigned,
part. If you and your employee voluntarily agree, you may withhold
and the address of your principal place of business. The IRS will then
for New York State income tax, New York City resident tax, Yonkers
advise you which number to use. You must also advise the New York
resident tax surcharge, or Yonkers nonresident earnings tax, whichever
State Tax Department of all identification numbers assigned to you and
may apply. For more information about your wage reporting and
identify your correct number.
withholding responsibilities, see section 2, part D, Employers of domestic
If you have been assigned a temporary New York State identification
(household) help on page 24, and New York State Publication 27, What
number and later get a federal number, notify the Tax Department of the
You Need to Know if You Hire Household Help.
federal number received by filing Form DTF-95, Business Tax Account
Update, and use the federal number for all future withholding purposes.
F. New York State resident employees
If you become the new owner of an existing business, you cannot use
All wages paid to a resident of New York State are subject to withholding,
the federal EIN of the former owner unless you acquired the business
even when earned outside New York State. See part P, Determining
by a purchase of corporate stock. You must apply for and acquire
withholding tax, on page 30, for an explanation of how to determine
your own new EIN. For application forms and more information about
withholding.
who needs an EIN, contact your local IRS office, go to the IRS Web
If wages paid to New York State residents are also subject to withholding
site ( ), or call the IRS Business and Specialty Tax Line at
of income taxes of other states, their political subdivisions, or the District
1 800 829-4933.
of Columbia, see part P, Determining withholding tax, on page 30, for
Employers that are assigned a New York State identification number
instructions on how to avoid double withholding.
(federal EIN plus two-digit suffix) for the purpose of reporting as separate
Note: Employers must continue to withhold New York State income
entities must use the assigned New York State number(s).
tax from resident employees regardless of work location or length of
You must list your identification number on the various forms mentioned
assignment outside of New York State. However, an employer may
in these instructions and in correspondence with the Tax Department.
accept a completed Form IT-2104.1, New York State, City of New
York, and City of Yonkers Certificate of Nonresidence and Allocation of
D. Personal responsibility
Withholding Tax, as documentation of an employee’s nonresident status,
as long as the employer does not have any actual knowledge or reason
All taxes required to be withheld pursuant to the Tax Law constitute a
to know the certificate is incorrect or unreliable. For more information on
trust fund. In addition to other penalties (see Summary of penalties on
Form IT-2104.1, see part K on page 28.
page 35), any person required to deduct, account for, and pay income
tax withheld who fails to collect, truthfully account for, and pay over
G. New York City resident employees
income tax withheld, will be liable for a penalty equal to the total of tax
not collected, accounted for, and paid as well as any interest due on the
All wages paid to a New York City resident are subject to personal
tax (see Tax Law section 685(g)). More than one person may be liable
income tax withholding even though the services may have been
as an employer or responsible person for withholding income tax.
performed outside New York City.
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