NYS Comptroller Seal  

Bureau of State Payroll Services

Date: April 28, 2000

 Bulletin No. 160
(Revised)


Subject Changes in NYC Tax Withholding Requirements
Purpose To explain changes in tax withholding requirements for employees who work in New York City but reside outside of New York State and to implement changes in the "commuter tax."
Affected Employees  Employees who WORK in one of the five boroughs of New York City, but reside outside of New York State, will no longer be subject to the NYC nonresident withholding tax.

This tax will be automatically canceled in PaySR.

Effective Dates Paychecks dated 04/26/00 for the Administration payroll
Paychecks dated 05/04/00 for the Institution payroll
Forms Used Form NYC-2104-E, City of New York Certificate of Exemption from Nonresident Earnings Tax Withholding. Form NYC-2104-E was designed in response to the elimination of the New York City nonresident earnings tax for New York State residents only. Since the nonresident earnings tax is now eliminated for all employees, this form is obsolete.

Form IT-2104.1, New York State Certificate of Nonresidence and Allocation of Withholding Tax. This form is used to determine if an employee is a resident of New York State.

Form IT-2104.2, City of New York Certificate of Nonresidence. This form has been redesigned to reflect the complete elimination of the nonresident earnings tax.

Impact on Current Employees No agency action is required for the records of current employees. For active affected employees, OSC has inserted a row of data on the Federal and Local Employee Tax Data panels and has deleted the Locality = P0001 on the Employee Tax Distribution panel.
Impact on New Hires and Transfers Newly hired or transferred employees who WORK in New York City, but do not live in the City of New York should complete IT-2104.2.
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Address Changes for NYC
  
Employees who work in New York City are required to notify the agency Payroll Office within ten days any time they have a change in status from nonresident to resident of the City of New York or from resident to nonresident of the City of New York.
Refunds for Nonresident Earnings for 2000 The Tax Department will make available to employees the new form NYC-203-R, Claim for Refund of New York City Nonresident Earnings Tax Withheld. Employees may use this form to request an early refund from the Tax Department of nonresident earnings taxes withheld from their wages in 2000.
Refunds for Nonresident Earnings for 1999 Employees may use form NYC-203-X, Amended City of New York Nonresident Earnings Tax Return to file for their 1999 refund.
To Obtain Forms Contact the NYS Department of Taxation and Finance:

Website: www.tax.state.ny.us
Fax on Demand: 1-800-748-3676
Toll Free Telephone number: 1-800-462-8100
Mail:
     NYS Department of Taxation and Finance
     Taxpayer Assistance Bureau
     W.A. Harriman Campus
     Albany, NY 12227

Questions Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.