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 (1/14)
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.
With the exception of certain annuity payments, income that is reported
on federal Forms 1099 is not subject to New York State withholding 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
and there are no provisions in the Tax Law for such withholding. Pension
and annuity income reported on federal Form 1099-R, Distributions
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
From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
State. However, if an out-of-state employer agrees to withhold New York
Insurance Contracts, etc., is subject to withholding if the annuitant
State, New York City, or Yonkers income taxes for the convenience of the
requests New York State, New York City, or Yonkers withholding by filing
employee(s), the employer is then subject to New York State withholding
Form IT-2104-P, Annuitant’s Request for Income Tax Withholding, with
requirements as outlined in this publication. If the employer does not
the payer. For more information on income tax withholding on annuities,
withhold New York State, New York City, or Yonkers income taxes, the
see part P, Determining withholding tax, on page 30, and the instructions
employee may be required to make estimated payments of such income
for Form IT-2104-P.
taxes using Form IT-2105, Estimated Income Tax Payment Voucher for
Employers of household help — Withholding income tax from wages
Individuals.
paid to household employees is voluntary on your part. If you and
your employee voluntarily agree, you may withhold for New York State
C. New York State employer’s identification
income tax, New York City resident tax, Yonkers resident tax surcharge,
number
or Yonkers nonresident earnings tax, whichever may apply. For more
information about your wage reporting and withholding responsibilities,
For your convenience, the New York State, New York City, and Yonkers
see section 2, part D, Employers of household help on page 24, and
identification number is the same as the federal employer identification
New York State bulletin TB-MU-350, Hiring Household Help.
number (EIN) if one has been assigned to you by the Internal Revenue
Service (IRS).
F. New York State resident employees
Each employer must have only one federal identification number. If you
All wages paid to a resident of New York State are subject to withholding,
have been assigned more than one federal identification number and
even when earned outside New York State. See part P, Determining
have not been advised which one to use, notify the IRS of the numbers
withholding tax, on page 30, for an explanation of how to determine
you have, the name and address to which each number was assigned,
withholding.
and the address of your principal place of business. The IRS will then
advise you which number to use. You must also advise the New York
If wages paid to New York State residents are also subject to withholding
State Tax Department of all identification numbers assigned to you and
of income taxes of other states, their political subdivisions, or the District
identify your correct number.
of Columbia, see part P, Determining withholding tax, on page 30, for
instructions on how to avoid double withholding.
If you have been assigned a temporary New York State identification
number and later get a federal number, notify the Tax Department of the
Note: Employers must continue to withhold New York State income
federal number received by filing Form DTF-95, Business Tax Account
tax from resident employees regardless of work location or length of
Update, and use the federal number for all future withholding purposes.
assignment outside of New York State. However, an employer may
accept a completed Form IT-2104.1, New York State, City of New
If you become the new owner of an existing business, you cannot use
York, and City of Yonkers Certificate of Nonresidence and Allocation of
the federal EIN of the former owner unless you acquired the business
Withholding Tax, as documentation of an employee’s nonresident status,
by a purchase of corporate stock. You must apply for and acquire
as long as the employer does not have any actual knowledge or reason
your own new EIN. For application forms and more information about
to know the certificate is incorrect or unreliable. For more information on
who needs an EIN, contact your local IRS office, go to the IRS Web
Form IT-2104.1, see part K on page 28.
site ( ), or call the IRS Business and Specialty Tax Line at
1 800 829-4933.
G. New York City resident employees
Employers that are assigned a New York State identification number
All wages paid to a New York City resident are subject to personal
(federal EIN plus two-digit suffix) for the purpose of reporting as separate
income tax withholding even though the services may have been
entities must use the assigned New York State number(s).
performed outside New York City.
You must list your identification number on the various forms mentioned
Individuals who reside in the following counties are subject to New York
in these instructions and in correspondence with the Tax Department.
City resident income tax: Kings County (Brooklyn), Bronx County,
New York County (Manhattan), Richmond County (Staten Island), and
D. Personal responsibility
Queens County. Certain mailing addresses in Queens (ZIP codes
All taxes required to be withheld pursuant to the Tax Law constitute a
starting with 110) and the Bronx (ZIP code 10803) may actually be
trust fund. In addition to other penalties (see Summary of penalties on
part of Nassau or Westchester County. Employers may use the Tax
page 35), any person required to deduct, account for, and pay income
Department’s Jurisdiction/Rate Lookup by address to determine if an
tax withheld who fails to collect, truthfully account for, and pay over
employee’s address is a New York City address for the purposes of
income tax withheld, will be liable for a penalty equal to the total of tax
withholding New York City resident income tax by visiting our Web site at
not collected, accounted for, and paid as well as any interest due on the
See part P, Determining withholding tax, on page 30, for
tax (see Tax Law section 685(g)). More than one person may be liable
an explanation of how to determine withholding.
as an employer or responsible person for withholding income tax.
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