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 174 - New York State Employer's Returns And Payment Of Withheld New York State Personal Income Taxes › Section 174.1 - New York State employer's returns of tax withheld and payment of withheld New York State personal income taxes

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 674(a)(1)(3)
(a)
General requirements.
Except as otherwise provided, every employer required to
						deduct and withhold New York State personal income tax from wages under this
						Article must file a New York State employer's return of tax withheld on form
						WT-1 and, with such employer's return, the employer must pay over to the New
						York State Department of Taxation and Finance the New York State personal
						income taxes so required to be deducted and withheld. Where the wages paid by
						an employer are not sufficient in amount to require the withholding of New York
						State personal income tax, such an employer need not file a New York State
						employer's return of tax withheld on form WT-1 (however, see section
						174.2 
						of this Part and Part 2380 of this Title with regard to the requirements for
						filing a quarterly combined withholding and wage reporting
						return).
(b)
Specific
					 requirements.
(1)
(i) Where, after having made a payroll, an
					 employer has been required to deduct and withhold, but has not paid over to the
					 Department of Taxation and Finance, a cumulative aggregate amount of $700 or
					 more of tax (see subparagraph [4][i] of this subdivision) during a calendar
					 quarter, such employer shall file a New York State employer's return of tax
					 withheld on form WT-1 and, with such employer's return pay over such cumulative
					 aggregate amount of tax to the Department of Taxation and Finance. Where such
					 employer was required to remit a cumulative aggregate amount of less than
					 $15,000 in withholding tax during the calendar year which precedes the previous
					 calendar year, the cumulative aggregate amount of tax shall be paid over on or
					 before the fifth business day (see subparagraph [4][ii] of this subdivision)
					 following the date of making such payroll. Where such employer was required to
					 remit a cumulative aggregate amount that is more than or equal to $15,000 in
					 withholding tax during the calendar year which precedes the previous calendar
					 year, the cumulative aggregate amount of tax shall be paid over on or before
					 the third business day following the date of making such payroll. Where a
					 payment is required to be made or a New York State employer's return of tax
					 withheld on form WT-1 is required to be filed at any time during a calendar
					 quarter in accordance with the provisions of this subparagraph, any cumulative
					 aggregate amount of tax of less than $700 which has not been paid over to the
					 Department of Taxation and Finance after such employer has made the last
					 payroll within such quarter shall be paid over to the Department of Taxation
					 and Finance with the quarterly combined withholding and wage reporting return
					 required to be filed for such quarter, on or before the last date prescribed
					 for the filing of such quarterly combined withholding and wage reporting return
					 (see section
					 174.2 
					 of this Part). In the case of an educational organization as defined in section
					 2396.2(f) 
					 of this Title or a health care provider as defined in section
					 2396.2(j) 
					 of this Title, including an educational organization or a health care provider
					 described in subparagraph (ii) of this paragraph, the cumulative aggregate
					 amount of tax shall be paid over on or before the fifth business day following
					 the date of making such payroll. Where a payment is required to be made or a
					 New York State employer's return of tax withheld on form WT-1 is required to be
					 filed by an educational organization or a health care provider at any time
					 during a calendar quarter in accordance with the provisions of this
					 subparagraph, any cumulative aggregate amount of tax of less than $700 which
					 has not been paid over to the Department of Taxation and Finance after such an
					 educational organization or health care provider has made the last payroll
					 within such quarter shall be paid over to such department with the quarterly
					 combined withholding and wage reporting return required to be filed for such
					 quarter, on or before the last date prescribed for the filing of such quarterly
					 combined withholding and wage reporting return (see section
					 174.2 
					 of this Part).
(ii)
(a) For purposes of this subparagraph, the
					 term
new employer
shall mean an employer who for the first
					 time maintains an office or transacts business within New York State and makes
					 payment of any wages taxable under article 22 of the Tax Law to a resident or
					 nonresident individual.
(b) Except
					 as otherwise provided in clause (
c
) of this subparagraph, a
					 new employer to whom the provisions of subparagraph (i) of this paragraph apply
					 shall file employer's returns of tax withheld on form WT-1 and pay over
					 withheld taxes as follows:
(1) during each
					 calendar quarter in the calendar year in which the new employer commences
					 operations, and during each calendar quarter in the succeeding calendar year,
					 the employer's return of tax withheld on form WT-1 shall be filed and the tax
					 shall be paid over on or before the fifth business day following the date of
					 making the applicable payroll;
(2)
					 during the second calendar year following the year in which operations were
					 commenced, such new employer shall continue utilizing the five business day
					 rule unless the Department of Taxation and Finance notifies the new employer
					 that during the year in which operations were commenced, such new employer was
					 required to remit a cumulative aggregate amount more than or equal to $15,000
					 in withholding tax (determined on an annualized basis where necessary), in
					 which case, such new employer shall file the employer's return of tax withheld
					 on form WT-1 and pay over the tax on or before the third business day following
					 the date of making the applicable payroll;
(3) for purposes of subclause
					 (
2
) of this clause, the annualized cumulative aggregate amount
					 of withholding taxes required to be remitted by a new employer during the year
					 in which such new employer commenced operations shall be determined as follows:
(i) if such new employer commenced operations
					 in the fourth calendar quarter of a year, then the cumulative aggregate amount
					 of taxes required to be remitted during such quarter shall be multiplied by
					 four;
(ii) if such new employer
					 commenced operations in the third calendar quarter of a year, then the
					 cumulative aggregate amount of taxes required to be remitted during the third
					 and fourth calendar quarter of such year shall be added, the sum divided by two
					 and the result multiplied by four;
(iii) if such new employer commenced
					 operations in the second calendar quarter of a year, then the cumulative
					 aggregate amount of taxes required to be remitted during the second, third and
					 fourth calendar quarters of such year shall be added, the sum divided by three
					 and the result multiplied by four.
(c) Notwithstanding the provisions of clause
					 (
b
) of this subparagraph, two or more employers already
					 maintaining offices or transacting business within New York State and making
					 payment of wages taxable under article 22 of the Tax Law to resident or
					 nonresident individuals, who merge or otherwise consolidate to form a new
					 employer shall, if the provisions of subparagraph (i) of this paragraph apply,
					 file employer's returns of tax withheld on form WT-1 and pay over withheld
					 taxes as follows:
(1) if at least one such
					 employer utilized the three business day rule described in subparagraph (i) of
					 this paragraph during the calendar quarter immediately preceding the calendar
					 quarter of the merger or consolidation, then the new employer shall likewise
					 utilize the three business day rule until notified to the contrary by the
					 Department of Taxation and Finance;
(2) if all such employers utilized the five
					 business day rule described in subparagraph (i) of this paragraph during the
					 calendar quarter immediately preceding the calendar quarter of the merger or
					 consolidation, then the new employer shall utilize the five business day rule
					 until notified to the contrary by the Department of Taxation and Finance.
(iii) The
					 Department of Taxation and Finance shall annually notify, in writing, all
					 employers described in subparagraphs (i) and (ii) of this paragraph of any
					 changes to their three or five business day filing and remittance due date
					 (
i.e.,
whether the three business day rule or five business
					 day rule will be applicable to the upcoming calendar year).