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New York Withholding Tax Change
Article ID: 1012345
Overview
The New York State Department of Taxation and Finance has revised the withholding tax tables for New York State and Yonkers Residents as provided in Publication NYS-50-T.1, Revised New York State and Yonkers Withholding Tax Computation Rules (Rev. 5/09), effective May 1, 2009.
This change is based on legislation that was signed by Governor David Paterson on April 7, 2009. It affects employees making over $200,000. No adjustments are necessary nor are required by the agency for tax withheld prior to using the revised withholding tables. Additional information can be found on the Agency?s website.
Form IT-2104, Employee?s Withholding Allowance Certificate (Rev. 4/09), has also been revised to reflect the legislative changes. Employers should encourage employees in certain instances (such as employees who have more than one job, or married employees if both spouses work) to complete the revised Form IT-2104 to prevent under-withholding for New York State and Yonkers residents and to ensure that the proper amount of tax is withheld for 2009.
Information
Frequently Asked Questions
How do I know if I?m affected?
You may be affected if you currently withhold New York income taxes from employees and make withholding tax payments in the State of New York or if you currently have a valid New York Withholding Identification Number.
When are the revised withholding tables effective?
The New York withholding tax tables are effective beginning May 1, 2009.
When will the revised withholding tax tables be available in QuickBooks?
The revised withholding tax tables will be available in Payroll Update #20912, scheduled to be released at the end of April 2009.
Do I have to adjust withholding tax calculated before I install Payroll Update #20912?
You do not need to make any adjustments to withholding taxes that were calculated using the prior withholding tables.
What do I need to do?
You will need to download and install Payroll Update #20912 as soon as it is released so the correct amount of New York withholding taxes are calculated and withheld from employee paychecks from that point forward. If you have Automatic Updates turned on and have selected all updates to download automatically, your QuickBooks software will download and install the update for you. If you do not have Automatic Updates turned on, you can download this payroll update manually. For more information on how to download and install a Payroll Update, click here.
What if I subscribe to the Disk Delivery service? When will I receive the CD for Payroll Update #20912?
Disks are scheduled to be sent the early part of May 2009. If you have internet access, you may want to download Payroll Update #20912. For more information on how to download and install a Payroll Update, click here.
