Form Nys-50 - Employer'S Guide To Unemployment Insurance, Wage Reporting, And Withholding Tax Page 30
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52Page 30 of 52 NYS-50 (10/11)
O. Nonresident alien employees entitled to tax
Q. Employee’s withholding allowance certificate
treaty benefits
In determining the tax to be deducted and withheld, you may allow the
same number of withholding allowances for New York State, New York
In accordance with Internal Revenue Service (IRS) guidelines, a
City, and Yonkers purposes as the number the employee claimed on
nonresident alien employee who claims an exemption from tax under
federal Form W-4. However, certain allowances for the employee and
a provision of a federal income tax treaty must file federal Form 8233,
his or her spouse permitted on federal Form W-4 are not allowed on
Exemption From Withholding on Compensation for Independent (and
Form IT-2104. Therefore, to ensure greater accuracy in withholding
Certain Dependent) Personal Services of a Nonresident Alien Individual,
amounts, all employees should complete and give you a New York State
with the employer to claim a tax treaty exemption from withholding.
Form IT-2104 and Form IT-2104.1, if applicable.
A nonresident alien employee who claims exemption from tax in
If an employee has claimed one or more withholding allowances on
accordance with IRS guidelines is not required to provide any additional
federal Form W-4 that are based on federal tax credits, he or she must
documentation to claim exemption from New York State, New York
complete a New York Form IT-2104 omitting those allowances for federal
City, and Yonkers income taxes. An employer may accept Form 8233
tax credits. The employee may instead be entitled to claim additional
submitted under federal guidelines. The employer is not required to
withholding allowances for certain New York State tax credits and
submit federal Form 8233 to New York State but should maintain a copy
deductions (see Form IT-2104).
of the statement submitted with the employee’s records available for
review by the Tax Department. For more information on nonresident
If an individual and his or her spouse both work, each spouse should file
aliens and federal tax treaties, see federal Publication 515, Withholding
a separate Form IT-2104 with his or her employer. Each spouse should
of Tax on Nonresident Aliens and Foreign Entities, Publication 519, U.S.
mark the box Married, but withhold at higher single rate on the front of
Tax Guide for Aliens, and the instructions for federal Form 8233.
Form IT-2104, and divide the total number of allowances between the
spouses. Their total withholding will better match their final tax if the
P. Determining withholding tax
higher-wage-earning spouse claims all of the couple’s allowances and
the lower-wage-earning spouse claims zero allowances.
The New York State income tax, New York City resident tax, Yonkers
resident tax surcharge, and Yonkers nonresident earnings tax to be
If an employee has not filed federal Form W-4 or wishes to claim
withheld by you must be determined using the approved withholding
allowances other than those claimed for federal withholding tax
tables or other methods based on the withholding allowances of the
purposes, the employee must complete and give Form IT-2104 to his or
employee. (In special situations, you may apply to the Tax Department
her employer.
for permission to use another method.) A written agreement may be
If you receive notification from the IRS that a federal Form W-4 for an
made between you and your employee to have additional amounts of tax
employee is defective, the number of exemptions allowed for New York
withheld (see Additional withholding requested on Form IT-2104 below
withholding purposes is limited to the number of withholding exemptions
for details). For more information on the computation of withholding tax
specified in the IRS notice, less the number of withholding exemptions
for New York State, New York City, or Yonkers, see pages 26 through 28.
allowed for federal credits, plus the number of additional New York
In addition to withholding New York State tax, you may also be required
withholding allowances that the employee is entitled to (and that is
to withhold income tax from wages paid to a New York State resident
claimed on a properly completed Form IT-2104).
pursuant to the laws of other states, their political subdivisions, or the
If the federal change to federal Form W-4 affects the allowances claimed
District of Columbia.
on a Form IT-2104 that is on file with the employer, the employee
To avoid double withholding, the amount of New York State income tax
should complete and submit to his or her employer, a new Form IT-2104
that would otherwise be required to be withheld from wages paid to a
reflecting the corrected number of allowable exemptions.
New York State resident should be reduced by the amount of income tax
If at any time an employee claims more than 14 allowances on
required to be withheld pursuant to the laws of other states, their political
Form IT-2104, see part T, Submitting certificates to the Tax Department,
subdivisions, or the District of Columbia. This applies to withholding of
on page 31.
New York State tax on residents only.
R. Voluntary withholding agreements
Additional withholding requested on Form IT-2104
An employee and employer may enter into an agreement to provide for
An additional withholding amount may be requested for New York
withholding on payments for services not considered wages as defined
State, New York City, or Yonkers (or any combination of these), by an
in part E, Income subject to withholding, on page 26, and compensation
employee/payee trying to avoid underwithholding. The employee/payee
described in part N, Taxation of employees of interstate carriers as well
makes the request by entering a specific dollar amount on lines 3,
as seamen engaged in all types of trade, on page 29. The employer
4 and/or 5 of his or her Form IT-2104. If you agree to withhold an
and employee must agree to the withholding, subject to termination on
additional amount, figure the amount that you would have withheld
written notice by either party. The furnishing of Form IT-2104, constitutes
based on the number of exemptions claimed, then add the additional
a request for withholding. If the employee is subject to withholding on
amount requested to this figure. Withhold the total amount from wages.
the payment of wages by his or her employer, the employee may also
enter into an agreement with his or her employer for withholding on
Income tax withholding from annuities
payments for services not considered wages by furnishing the employer
If an annuitant files Form IT-2104-P, with the payer, the payer must
with a written request containing his or her name, address, social
withhold the amount specified, provided that the New York State tax
security number, statement that he or she desires withholding and the
withheld is not less than $5 per month, and if applicable, New York City
duration of the withholding. There is no provision in New York State Tax
or Yonkers tax withheld is not less than $5 per month, and does not
Law for withholding on individuals who are self-employed (independent
reduce the annuity payment to less than $10.
contractors).
To qualify for withholding, the annuity or pension payment must be
S. Certificate of exemption from withholding
income to the recipient that would be includable in his or her New York
adjusted gross income. The annuity or pension must also be payable
Exemption from withholding of New York State, New York City, and
over a period longer than one year. The request for withholding will
Yonkers resident taxes is available for employees who meet the
remain in effect until terminated in writing by the payee.
requirements of section 671(a)(3) of the Tax Law, or who qualify as
a military spouse exempt from New York State income tax under the
A payer of annuities will be subject to the same remitting and reporting
Servicemembers Civil Relief Act (SCRA), as amended by the Military
requirements as employers if a payee has requested withholding for
Spouses Residency Relief Act.
New York State, New York City, or Yonkers income tax.
Tax Law section 671(a)(3) exempts employees under age 18 or over
Pension and annuity income (reported on federal Form 1099-R) must
age 65, or full-time students under age 25, who had no New York
be reported as Other wages on Form NYS-45-ATT, Quarterly Combined
income tax liability in their previous taxable year and expect none in
Withholding, Wage Reporting, And Unemployment Insurance Return -
the current year. See Form IT-2104-E, Certificate of Exemption from
Attachment, if the payer withholds New York State, New York City, or
Withholding, for details.
Yonkers income taxes from the distribution(s).
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