2023 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  the
employee's  wages  received  during  such  calendar  year. The method of
determining the amount  to  be  withheld  shall  be  prescribed  by  the
commissioner,  with due regard to the New York withholding exemptions of
the employee and the sum of any credits allowable against the employee's
tax. The commissioner shall  publish  any  changes  to  such  method  of
determining  the  amount  of  tax  to  be withheld on the website of the
department of taxation and finance. The commissioner  shall  also  cause
notice  of such changes to be published in the section for miscellaneous
notices in the state register and shall give other  appropriate  general
notice of such changes.
(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.