Withholding tax changes
NYC withholding tax change effective January 1, 2016
- If you have employees subject to New York City personal income tax who are earning over $500,000 per year, revised withholding tax computation rules may affect your payrolls made on or after January 1, 2016.
- Calculate new withholding amounts using Publication NYS-50-T-NYC, New York City Withholding Tax Tables and Methods (dated 1/16).
NYS and Yonkers withholding tax changes effective January 1, 2016
We revised the 2016 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 2016. These changes apply to payrolls made on or after January 1, 2016.
- Calculate new New York State withholding tax amounts using Publication NYS-50-T-NYS, New York State Withholding Tax Tables and Methods (1/16).
- Calculate new Yonkers resident withholding tax amounts using Publication NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods (1/16).
- Form IT-2104 for 2016 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.