Withholding tax changes
NYC Withholding tax change effective July 1, 2017
- If you have employees subject to New York City personal income tax who are earning $500,000 or less per year, revised withholding tax computation rules may affect your payrolls made on or after July 1, 2017.
- Calculate new withholding amounts using Publication NYS-50-T-NYC, New York City Withholding Tax Tables and Methods (dated 7/17).
- For additional information see Important Notice N-17-5, Changes to the STAR Program Personal Income Tax Rate Reduction for Certain New York City Residents
NYS and Yonkers withholding tax changes effective January 1, 2017
We revised the 2017 New York State personal income tax rate schedules to reflect the cost of living adjustment required by tax law. We also updated the New York State and Yonkers resident withholding tax tables and methods for 2017. These changes apply to payrolls made on or after January 1, 2017.
- Calculate new New York State withholding tax amounts using Publication NYS-50-T-NYS, New York State Withholding Tax Tables and Methods (1/17).
- Calculate new Yonkers resident withholding tax amounts using Publication NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods (1/17).
- Form IT-2104 for 2017 reflects these tax rate schedule changes.
Just a reminder
To avoid penalties, it's important to file and pay withholding tax on time and accurately report employee wage and withholding information. See Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax for more information.