NY Tax L § 671 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 5 - Withholding of Tax 671 - Requirement of Withholding Tax From Wages.

§  671.  Requirement  of  withholding tax from wages. (a) General. (1) Every employer maintaining an office or transacting business within this state and making payment of any wages taxable under this  article  shall deduct  and  withhold  from  such  wages  for  each payroll period a tax computed in such  manner  as  to  result,  so  far  as  practicable,  in withholding  from  the  employee's  wages  during  each calendar year an amount substantially equivalent to the tax reasonably  estimated  to  be due  under  this  article resulting from the inclusion in the employee's New York adjusted gross income or New York source income  of  his  wages received during such calendar year. The method of determining the amount to  be  withheld shall be prescribed by regulations of the commissioner, with due regard to the New York withholding exemptions of  the  employee and the sum of any credits allowable against his tax.  (2) The tax commission may provide, by regulations, for withholding--  (A)  from  remuneration  for services performed by an employee for his employer which does not constitute wages, and  (B) from any other type of payment, with  respect  to  which  the  tax commission  finds  that  withholding  would  be  appropriate  under  the provisions of this article, if the employer and the employee, or in the case of any  other  type  of payment the person making and the person receiving the payment, agree to such  withholding.  Such agreement shall be made in such form and manner as the tax commission may by regulations provide. For purposes  of  this article,  remuneration  or  other  payments  with  respect to which such agreement is made shall be treated as if they  were  wages  paid  by  an employer  to an employee to the extent that such remuneration is paid or other payments are made during the period for which the agreement is  in effect.  (3)  The  tax  commission shall provide by regulation for an exemption from withholding for (i) employees under eighteen  years  of  age,  (ii) employees  under twenty-five years of age who are full-time students and (iii) employees over sixty-five years of age,  provided  such  employees had  no  income  tax  liability  in  the  prior  year and can reasonably anticipate none in the current year.   * (b) Extension  of  withholding  to  certain  periodic  payments  and gambling winnings.  (1)  For purposes of this article, any payment subject to withholding, within the meaning of paragraph two of this subsection, shall be treated as if it were wages paid by an employer to an employee.  (2) Payments subject to withholding. For purposes of paragraph one  of this subsection, a payment subject to withholding means:  (A)  Any  supplemental  unemployment  compensation  benefit paid to an individual to the  extent  includible  in  such  individual's  New  York adjusted gross income or New York source income.   ** (B)  Any member or employee contributions to a retirement system or pension fund picked up by the employer  pursuant  to  subdivision  f  of section  five  hundred seventeen or subdivision d of section six hundred thirteen of the retirement and social security law or section  13-225.1, 13-327.1,  13-125.1,  13-125.2 or 13-521.1 of the administrative code of the city of New York or  subdivision  nineteen  of  section  twenty-five hundred  seventy-five  of  the  education law and any member or employee contributions to a retirement system or pension fund picked up  or  paid by  the  employer  for  members  of  the  Manhattan  and  Bronx  surface transportation  authority  pension  plan   and   treated   as   employer contributions  in  determining income tax treatment under section 414(h) of the Internal Revenue Code.   ** NB Effective until ch 525/2011 § 4 takes effect    ** (B) Any member or employee contributions to a retirement system  or pension  fund  picked  up  by  the employer pursuant to subdivision f of section five hundred seventeen, subdivision d  of  section  six  hundred thirteen  or  section twelve hundred four-a of the retirement and social security  law  or  section  13-225.1,  13-327.1,  13-125.1,  13-125.2 or 13-521.1 of  the  administrative  code  of  the  city  of  New  York  or subdivision  nineteen of section twenty-five hundred seventy-five of the education law and any member or employee contributions to  a  retirement system  or pension fund picked up or paid by the employer for members of the Manhattan and Bronx surface transportation  authority  pension  plan and   treated  as  employer  contributions  in  determining  income  tax treatment under section 414(h) of the Internal Revenue Code.   ** NB Effective when ch 525/2011 § 4 takes effect until expiration per ch 681/1992 § 16   ** (B) Any member or employee contributions to a retirement system  or pension  fund  picked  up  by  the employer pursuant to subdivision f of section five hundred seventeen or subdivision d of section  six  hundred thirteen  of the retirement and social security law or section 13-225.1, 13-327.1 or 13-125.1 of the administrative code of the city of New York.   ** NB Effective upon expiration of ch 681/1992 § 16  (C) Any  payment  of  an  annuity  to  an  individual  to  the  extent includible  in  such  individual's New York adjusted gross income or New York source income, if at the time the payment is made  a  request  that such annuity be subject to withholding under this article is in effect.  (D) Any payment of winnings from a wager placed in a lottery conducted by  the  division of the lottery, if the proceeds from such wager exceed five thousand dollars.  (E) Any gambling winnings from  a  wagering  transaction  within  this state,  if  the proceeds from the wager are subject to withholding under section three thousand four hundred two of the internal revenue code.  (F) Any amount deducted or deferred from an employee's salary under  a flexible  benefits  program established pursuant to section twenty-three of the general municipal law or section one thousand two  hundred  ten-a of the public authorities law.  (G)  Any  amount  by which an employee's salary is reduced pursuant to the provisions of subdivision b of section 12-126.1 and subdivision b of section 12-126.2 of the administrative code of the city of New York.  (3) Additional provisions applicable to this subsection.  (A) Request for annuity withholding. A  request  that  an  annuity  be subject  to withholding under this article shall be made by the payee in writing to the person making the annuity payments. Such a  request  may, notwithstanding  any  provision of law to the contrary, be terminated by furnishing to the person making the  payments  a  written  statement  of termination.  Such a request for withholding or statement of termination shall take effect in such manner as the  commissioner  of  taxation  and finance shall prescribe.  (B)  Withholding  on  lottery  winnings upon change of residence. If a payee of lottery winnings subject to the provisions of subparagraph  (D) of  paragraph  two  of  this  subsection changes status from resident to nonresident, withholding in  accordance  with  such  subparagraph  shall constitute  other  security  acceptable  to  the commissioner within the meaning of subsection (d) of section six  hundred  thirty-nine  of  this article.  (C)  Proceeds.  For purposes of subparagraphs (D) and (E) of paragraph two of this subsection, proceeds from a wager  shall  be  determined  by reducing the amount received by the amount of the wager.  (D)  Taxes  withheld  at maximum rate. The tax withheld on any payment subject to withholding under subparagraph (D) or (E) of paragraph two of  this subsection shall be withheld at the highest rate of tax on New York taxable income, without any allowance for deductions or  exemptions,  in effect  under  this article for the taxable year in which the payment is made.  (E)   Determination   of  residence.  For  purposes  of  applying  the provisions of subparagraphs  (D)  and  (E)  of  paragraph  two  of  this subsection,  any  payor of proceeds shall determine the residence of the payee of such proceeds in accordance with regulations or instructions of the commissioner of taxation and finance or, in the absence of any  such regulations or instructions, in accordance with the address of the payee required  under  the  provisions  of  paragraph six of subsection (q) of section thirty-four hundred two of the internal revenue code.   * NB Expires per ch. 782/88 § 8   * (b) Extension of withholding to unemployment compensation  benefits, annuity payments, and lottery winnings.--  (1) For purposes of this article--  (A)  any  supplemental  unemployment  compensation  benefit paid to an individual to the  extent  includible  in  such  individual's  New  York adjusted gross income or New York source income,  (B)  any  payment  of  an  annuity  to  an  individual  to  the extent includible in such individual's New York adjusted gross  income  or  New York  source  income,  if at the time the payment is made a request that such annuity be subject to withholding under this article is in  effect, and  (C)  any  periodic  payment  (but only where such payment is part of a series of payments extending over a period greater  than  one  year)  of lottery  winnings  by  the  division  of the lottery, if at the time the payment is made a request that  such  lottery  winnings  be  subject  to withholding  under  this article is in effect, shall be treated as if it were a payment of wages by an employer to  an  employee  for  a  payroll period.  (2)  Request for withholding.--A request that an annuity be subject to withholding under this article shall be made by the payee in writing  to the  person  making  the  annuity  payments,  and a request that lottery winnings be subject to withholding under this article shall be  made  by the  payee  in  writing  to  the  division of the lottery, in the manner prescribed by the commissioner of taxation and finance. A  request  that an  annuity be subject to withholding may, notwithstanding any provision of law to the contrary, be terminated by furnishing to the person making the payments a written statement of termination. A request that  lottery winnings  be  subject  to  withholding  under  this article shall not be revocable while the payee is a nonresident, and shall  constitute  other security  acceptable  to  the  tax  commission  within  the  meaning  of paragraph four of subsection (c) of section six  hundred  fifty-four  of this article. Such a request for withholding or statement of termination shall  take  effect  in  such manner as the commissioner of taxation and finance shall provide by regulation.   * NB Effective per ch. 782/88 § 8  (c) Withholding exemptions. For purposes of this section:  (1) The number of New York withholding exemptions  which  an  employee receiving  wages  taxable  under this article may claim shall not exceed the number of New York exemptions allowed pursuant to the provisions  of section  six  hundred  sixteen  and such additional New York withholding exemptions as may be prescribed by regulations or  instructions  of  the commissioner of taxation and finance, taking into account the applicable standard deduction and such other factors as he finds appropriate.  (2)  The  amount  of  each New York withholding exemption shall be the amount of the New York exemption allowed pursuant to the  provisions  of section six hundred sixteen.  (3)  Withholding  exemption certificate. An employee shall be required to file with his employer a withholding exemption certificate in  accor- dance with regulations or instructions prescribed by the commissioner of taxation and finance.