Form Nys-50 - Employer'S Guide To Unemployment Insurance, Wage Reporting, And Withholding Tax Page 29
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52NYS-50 (10/11) Page 29 of 52
which the employee estimated a percentage of services performed in
2. Determine the amount of withholding on the combined $2,250 amount
New York State of greater than zero percent. (A prior Form IT-2104.1
to be $76.90 using the wage bracket tables.
submitted pursuant to (1) above for the specific purpose of withholding
3. Subtract the amount withheld from wages on the most recent pay date
on deferred compensation or compensation from nonstatutory stock
from the combined withholding amount ($76.90 - $34.30 = $42.60).
options will not be considered the last Form IT-2104.1 on file.)
4. Withhold $42.60 from the bonus payment.
4. The employer has adequate records to determine the correct amount
Example 3: The facts are the same as in Example 2, except that you
of wages or other compensation attributable to services performed in
elect to use the 2011 supplemental rate for withholding on the bonus.
New York State or Yonkers. In this case, the employer may compute
You withhold 9.77% of $750, or $73.28, from Susan’s bonus payment.
the withholding based on that amount. The employer must maintain
a record of how it computed the percentage of compensation subject
N. Taxation of employees of interstate carriers
to New York State withholding. Adequate records include, but are not
limited to, Form(s) IT-2104.1 on file for the entire compensable period.
as well as seamen engaged in all types of trade
For purposes of (1) through (4) above, an employer may rely on a
Interstate rail, motor, and motor private carriers
Form IT-2104.1 submitted by an employee, provided the employer does
not have actual knowledge or reason to know the certificate is incorrect
Because of the provisions of federal law, compensation paid by an
or unreliable. For more information on Form IT-2104.1, see part K on
interstate rail, motor, or motor private carrier to an employee who
page 28.
performs regularly assigned duties in two or more states is subject to
state and local income taxes only in the employee’s state of residence.
M. Supplemental wage payments
Resident — An employer who is an interstate rail, motor, or motor
Supplemental wages are compensation paid in addition to an
private carrier must withhold New York State (and New York City or
employee’s regular wages. They include, but are not limited to, bonuses,
Yonkers, if applicable) income tax on the entire amount of compensation
commissions, overtime pay, payments for accumulated sick leave,
paid to an employee who is a New York State resident.
severance pay, awards, prizes, back pay and retroactive pay increases
Nonresident — If an employee of one of the above carriers is a
for current employees, and nondeductible moving expenses. Other
nonresident for income tax purposes and is paid compensation for
payments subject to the supplemental wage rules include taxable fringe
regularly assigned duties performed in New York State and one or more
benefits and expense allowances paid under a nonaccountable plan.
other states, the compensation is not considered to be income derived
Also see federal Circular E for a list of other payments that may be
from New York State (and New York City or Yonkers, if applicable)
considered supplemental wages.
sources and is not subject to state or city taxes, even though the
How you withhold on supplemental payments depends on whether the
employee performed services in New York State.
supplemental payment is identified as a separate payment from regular
An employer who is an interstate rail, motor, or motor private carrier
wages.
should not withhold New York State, New York City, or Yonkers taxes on
compensation paid to employees who are New York State nonresidents
Supplemental wages combined with regular wages
who perform their regularly assigned duties in New York State and one
If you pay supplemental wages with regular wages but do not specify
or more other states.
the amount of each, withhold income tax as if the total were a single
However, a nonresident employee of an interstate rail, motor, or motor
payment for a regular payroll period.
private carrier may request New York State, New York City, or Yonkers
withholding. See part R, Voluntary withholding agreements, on page 30.
Supplemental wages identified separately from
regular wages
Interstate air carriers
If you pay supplemental wages separately (or combine them in a single
Resident — Compensation paid to a New York State resident who is
payment and specify the amount of each), the income tax withholding
an employee of an interstate air carrier is subject to New York State
method depends partly on whether or not you withhold income tax from
personal income tax. An employer who is an interstate air carrier must
your employee’s regular wages:
withhold New York State (and New York City or Yonkers, if applicable)
• If you withheld income tax from an employee’s regular wages, you
income tax.
can use one of the following methods for the supplemental wages:
Nonresident — Compensation paid to a nonresident of New York State
a. Withhold at the supplemental rates; see
who is an employee of an interstate air carrier is subject to New York
Publication NYS-50-T-NYS, Publication NYS-50-T-NYC, and
State personal income tax only if more than 50% of the employee’s
Publication NYS-50-T-Y (whichever apply) for the supplemental
compensation is earned within New York State. An employer who is an
rates.
interstate air carrier must withhold New York State (and New York City
b. Add the supplemental and regular wages for the most recent
or Yonkers, if applicable) income tax on an employee’s compensation
payroll period this year. Then figure the income tax withholding
if more than 50% is earned within New York State. Since an employee
as if the total were a single payment. Subtract the tax already
of an interstate air carrier who earns 50% or less of his or her
withheld from the regular wages. Withhold the remaining tax from
compensation within New York State is not subject to New York State
the supplemental wages.
personal income tax, he or she is not subject to withholding.
• If you did not withhold income tax from the employee’s regular
More than 50% of the employee’s compensation is considered earned
wages, use method b. (This would occur, for example, when the value
in New York State (and New York City or Yonkers, if applicable) if the
of the employee’s withholding allowances claimed on Form W-4 is
employee’s scheduled flight time in New York for the calendar year is
more than the wages.)
more than 50% of the employee’s total scheduled flight time for the
Example 1: You pay Jim Parks a base salary on the first of each month.
calendar year.
He is single, lives and works in Albany, and claims one withholding
A nonresident employee of an interstate air carrier may request New
allowance. In January of 2011, you pay him $1,000. Using the wage
York State, New York City, or Yonkers withholding. See part R, Voluntary
bracket tables, you withhold $14.20 from this amount. In February 2011,
withholding agreements, on page 30.
you pay him $1,000 plus a commission of $1,500, which you include in
regular wages. You figure the withholding based on the total of $2,500.
Withholding requirements for seamen
The correct withholding from the wage bracket tables is $92.60.
New York State, New York City, and Yonkers income taxes may not
Example 2: You pay Susan Williams a base salary on the first of each
be withheld from compensation paid to seamen engaged in foreign,
month. She is single, lives and works in Rochester, and claims one
coastwise, intercoastal, interstate or noncontiguous trade, or an
allowance. Her May 1, 2011, pay is $1,500. Using the wage bracket
individual employed on any fishing vessel or fish processing vessel.
tables, you withhold $34.30. On May 14, 2011, you pay her a bonus of
$750. Electing to use supplemental payment method b, you:
However, seamen may request New York State, New York City, or
Yonkers withholding, regardless of their resident status. See part R,
1. Add the bonus amount to the amount of wages from the most recent
Voluntary withholding agreements, on page 30.
pay date ($750 + $1,500 = $2,250).
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