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 171.4 - Determining New York State personal income tax to be withheld

Current through Register Vol. 46, No. 28, July 10, 2024
(a) General. The amount of New York State
					 personal income tax to be deducted and withheld by an employer must be
					 determined in accordance with one of the following withholding methods:
Method I - Wage Bracket Table Method
Method II - Exact Calculation Method
Method III - Top Income Tax Rates Method
In case of special situations, however, an employer may
						apply to the Commissioner of Taxation and Finance for permission to use another
						method. The wage bracket table method, the exact calculation method, and the
						top income tax rates method are set out in Appendix 10 of this Title The New
						York State tax tables and methods, along with forms, instructions and other
						guidance for withholding, payment and reporting of the New York State personal
						income tax are available on the Tax Department's Web site. For the rules for
						determining the New York State personal income tax to be withheld on
						supplemental wages and other rules applicable in determining the proper amount
						of New York State personal income tax to be withheld, see the succeeding
						subdivisions of this section.
(b) Supplemental wages.
(1) General. Where supplemental wages (such
					 as bonuses, commissions, overtime pay, sales awards or tips) are paid at the
					 same time as regular wages, the New York State personal income tax to be
					 deducted and withheld should be determined as if the total of the supplemental
					 and regular wages were a single wage payment for the regular payroll period.
					 Where supplemental wages are paid at a different time, an employer may
					 determine the New York State personal income tax to be withheld by adding the
					 supplemental wages either to the regular wages for the current payroll period
					 or to the regular wages for the last preceding payroll period within the same
					 calendar year. However, if New York State personal income tax has been withheld
					 from an employee's regular wages, an employer may withhold New York State
					 personal income tax from the supplemental wages at a rate equal to the rate of
					 New York State personal income tax to be withheld from the highest denominated
					 taxable income applicable to withholding from salaries and wages (e.g., 11.70
					 percent for supplemental wages paid after December 31, 2021), without any
					 allowance for withholding exemptions.
(2) Vacation allowances. Amounts of so-called
					 vacation allowances are subject to withholding as though they were regular wage
					 payments made for the period covered by the vacation. If the vacation allowance
					 is paid in addition to the regular wage payment for such period, the rules
					 applicable with respect to supplemental wage payments apply to such vacation
					 allowance.