12 December 2018 New York tax department releases New York State and City of Yonkers 2019 withholding tables The New York Department of Taxation and Finance has released revised wage bracket and percentage method income tax withholding tables for the state of New York and the City of Yonkers, effective for wages paid on or after January 1, 2019. The Department's email notification notes that there were no changes to the New York City resident wage bracket tables and exact calculation methods. City employers are instructed to continue using Publication NYS-50-T-NYC, New York City Withholding Tax Tables and Methods (revised 1-2018). See EY Payroll Newsflash Vol. 19, #169, 10-18-2018 for details regarding the proposed regulations that provided for the revisions. The 2019 New York State and City of Yonkers personal income tax rate schedules have been revised to reflect certain income tax rate reductions enacted under Chapter 60 of the Laws of 2016 (Part TT). Accordingly, effective for payrolls made on or after January 1, 2019, employers must use the revised withholding tax tables and methods to compute the amount of New York State and City of Yonkers taxes to be withheld from employees. Effective January 1, 2019, if you pay supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.), the following withholding rates apply: If you pay supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.) with regular wages but do not specify the amount of each, withhold income tax as if the total were a single payment for a regular payroll period. If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the income tax withholding method depends partly on whether or not you withhold income tax from your employee's regular wages: If you withhold income tax from an employee's regular wages, you can use one of the following methods for the supplemental wages:
If you did not withhold income tax from the employee's regular wages, use method b. (This would occur, for example, when the value of the employee's withholding allowances claimed on the Form W-4 is more than the wages.) Also see federal Publication 15, Circular E, for a list of other payments that may be considered supplemental wages. The updated Publications NYS-50-T-NYS and NYS-50-T-Y indicate that New York State Form IT-2104, Employee's Withholding Allowance Certificate, for use by New York State and the City of Yonkers employers will be revised effective January 1, 2019 to account for the adjustments to the personal income tax rate schedules and calculations. However, the revised form has not yet been posted to the Tax Department website. Once posted, the form will be available here. The revised withholding tables and methods in the publications should assist in arriving at the proper amount of tax is withheld for 2019. However, employers should encourage employees who completed a Form IT-2104 prior to January 1, 2019, using the worksheet to compute withholding allowances, or the charts in Part 4 or Part 5 to enter an additional dollar amount of New York State withholding on line 3, to complete a revised Form IT-2104.
Document ID: 2018-2460 | |||||||||
