New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 5 - Withholding of New York State Personal Income Tax › Part 171 - Requirement Of Withholding New York State Personal Income Tax From Wages › Section 171.7 - Voluntary New York State personal income tax withholding agreements

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 671(a)(2)
(a)
General.
An employee and his employer may enter into an agreement,
						under section 671 (a)(2)  of the Tax Law,
						to provide for withholding of New York State personal income tax upon payments
						made as remuneration for services performed by an employee for his employer
						which do not constitute wages pursuant to section
						171.3  of this
						Part, but which are includible in the New York adjusted gross income of the
						employee. Such an agreement must be applicable to all such amounts paid by the
						employer to the employee. The amount deducted and withheld pursuant to such an
						agreement between the employer and employee is to be determined under the rules
						contained in section 671 (a)(1)  of the Tax Law
						and the regulations set forth in this Part.
(b)
Form and duration of
					 agreement.
(1) Except as provided in
					 paragraph (2) of this subdivision, an employee who desires to enter into an
					 agreement as set forth in this section must furnish such employee's employer
					 with a completed
Employee's Withholding Allowance Certificate
(form IT-2104). The furnishing of such form IT-2104 constitutes a request for
					 withholding.
(2) In the case of an
					 employee who desires to enter into an agreement as set forth in this section
					 with his employer, if the employee performs services (in addition to those to
					 be the subject of the agreement) the remuneration for which is subject to
					 mandatory New York State personal income tax withholding by such employer, or
					 if the employee wishes to specify that the agreement terminate on a specific
					 date, the employee must furnish the employer with a request for withholding
					 which must be signed by the employee, and must contain:
(i) the name, address, and social security
					 number (see section
					 158.1(c) 
					 of this Title) of the employee making the request;
(ii) the name and address of the
					 employer;
(iii) a statement that
					 the employee desires withholding of New York State personal income tax;
					 and
(iv) if the employee desires
					 that the agreement terminate on a specific date, the date of termination of the
					 agreement.
If accepted by the employer as provided in paragraph (3)
						of this subdivision, the request must be attached to, and will constitute part
						of, the employee's
Employee's Withholding Allowance
						Certificate
(form IT-2104). An employee who furnishes such employee's
						employer a request for withholding of New York State personal income tax, as
						set forth in this section, must also furnish such employer with a completed
						form IT-2104 if such employee does not already have a form IT-2104 in effect
						with such employer.
(3) No request for the withholding of New
					 York State personal income tax, as set forth in this section, will be effective
					 as an agreement between an employer and an employee until the employer accepts
					 the request by commencing to withhold New York State personal income tax from
					 the amounts with respect to which the request was made.
(4) An agreement as set forth in this section
					 will be effective for such period as the employer and employee mutually agree
					 upon. However, either the employer or the employee may terminate the agreement
					 prior to the end of such period by furnishing a signed written notice to the
					 other. Unless the employer and employee agree on an earlier termination date,
					 the notice will be effective with respect to the first payment of an amount in
					 respect of which the agreement is in effect which is made on or after the first
					 Federal status determination date (January first, May first, July first and
					 October first of each year) that occurs at least 30 days after the date on
					 which the notice is furnished. If the employee executes a new form IT-2104, the
					 request upon which an agreement as set forth in this section is based must be
					 attached to, and constitute a part of, such new form IT-2104.