NYS Comptroller Seal  

Bureau of State Payroll Services

Date:  January 28, 2003

Bulletin No. 367


Subject New Procedures for Processing Tax-Withholding for Non-Resident New York City Employees
Purpose To provide procedures for entering tax information into PaySR for NYC non-resident employees hired, or transferred to work, in NYC.
Background In order to use the People Soft delivered functionality and to remove difficult-to-support customization from the Payroll System, changes as to how agencies enter tax- withholding data are necessary. These changes are procedural only and do not affect tax withholding rates.
Effective Date For employee's Hired or Transferred after:
2/13/03 - Administration Lag
2/27/03 - Administration Current
2/20/03 - Institution Lag
3/06/03 - Institution Current
Agency Actions Agencies will be required to obtain a completed form NYC-2104-E from the employee to claim eligibility for the Non-Resident Status for NYC non-resident employees hired, or transferred to work, in NYC.

Agencies should use the following steps to enter tax information for each newly hired or transferred employee.

1. Open the Federal Tax Data1 panel. Path: Go> Compensate Employees>Maintain Payroll Data U.S.>Use Employee Tax Data>Federal Tax Data 1>Update Display.

2. Select the employee record.

3. Insert a new row.

4. Specify the effective date of the tax data change:

If the employee is newly hired, change the Effective Date to one day after the hire date.

For all other employees who no longer live in the five boroughs of New York City, change the Effective date to the date of the change.

5. Enter Federal or State Tax information for the employee, if applicable.

6. Tab to Local Tax Data.

7. Uncheck the Resident box.

8. Save the panel.

Please do not remove the P0001 from the panel.

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