NYS Comptroller Seal

 

Bureau of State Payroll Services

 

  Date: August 13, 2004  Bulletin No. 494
     

Subject New York City Wages and Local Taxes
Purpose To provide agencies with instructions for reporting NYC wages and local taxes and entering tax information for new hires, concurrent hires and rehires.
Affected Employees

Employees who:

  1. Live in New York City
  2. Work but do not live in New York City
Effective
Date
Immediately
New York City Residence

New York City (NYC) wages must be reported for all employees residing in the five counties designated to be within the City of New York:

  • Bronx County (Bronx)
  • Kings County (Brooklyn)
  • New York County (Manhattan)
  • Queens County (Queens)
  • Richmond County (Staten Island)

If the employee's home address appears to be in the counties listed above, agencies must verify that the address is located in New York City, based upon NYS Publication 635 and/or NYS Publication 717, which can be found at www.tax.ny.gov.

Local Tax Data Page

In order for the Office of the State Comptroller to properly report local wages to the NYS Department of Taxation and Finance, the Local Tax Data page must be filled out with the employee's withholding allowances based upon Line 2 of Form IT-2104 (Employee's Withholding Allowance Certificate) or exempt status based on Form IT-2104.1 (New York State, City of New York, and City of Yonkers Certificate of Non-residence and Allocation of Withholding Tax).

The path to update NYC tax information is:   Compensate Employees > Maintain Payroll Data (US) > Use > Employee Tax Data > Local Tax Data

Default Information Based On Tax Location Code

The default information on the Local Tax Data page is determined by the Tax Location Code field on Job Data (Payroll tab) for the employee.  

 

The path to Job Data is:   Administer Workforce > Administer Workforce (GBL) > Job Data (Agency) > Payroll tab

Default Information for Tax Location Code of NY1

(NYC)

If the tax location on Job Data (Payroll tab) is NY1 (NYC), the default information on the Local Tax Data page is:

Locality:                                           P0001

Resident box:                                    Checked

Special Tax Status:                            None

LWT Marital/Tax Status:                      S (single)

Local Withholding Allowances:               0

Agency Actions for Tax Location Code of NY1

(New Hires)
  • NYC Residents - Tax Location Code NY1 on Job Data

If the employee is a NYC resident and submits Form IT-2104 with different marital/tax status and/or withholding allowances than the defaults, the agency must insert an effective-dated row on the Federal Tax Data page and fill in the new information on the Local Tax Data page.

•  NYC Non-Residents - Tax Location Code NY1 on Job Data

If the employee does not live in NYC and the Form IT-2104 indicates that the employee does not live in the five counties of New York City, the agency must:   insert an effective-dated row on the Federal Tax Data page, unclick the resident box on the Local Tax Data page and update other fields according to the Form IT-2104. DO NOT remove the P0001 from the Locality field.

Default Information for

Tax Location Code of NY (NYS)

If the tax location on Job Data (Payroll tab) is NY (NYS), the information on the Local Tax Data page is:

  Locality: Blank
  Resident box: Checked
  Special Tax Status: None
  LWT Marital/Tax Status: Blank
  Local Withholding Allowances: 0

The above indicates that the employee has no local tax record.

Agency Actions for Tax Location Code of NY

(New Hires)
  • NYC Residents - Tax Location Code NY on Job Data

If the employee is a NYC resident, the employee must submit Form IT-2104 with the employee's withholding allowances completed on line 2 or exempt status based on Form IT-2104.1. Based on the Form IT-2104, the agency must insert an effective-dated row on the Federal Tax Data page and add local information on the Local Tax Data page with P0001 in the Locality field, leaving the Resident box checked and complete the marital/tax status and withholding allowance information.

 

  • NYC Non-Residents- Tax Location Code NY on Job Data

If the employee does not live in NYC, no action is required because the default row indicates that the employee does not live in the five counties of New York City .   

 

Web-based Learning Assistant

(WLA)
For assistance with entering effective-dated tax rows, please read the Web-based Learning Assistant (WLA) for Employee Tax Data, Entering.

Agency Actions

(Concurrent Hires or Rehires)

If an employee is concurrently hired or rehired into the same company, the employee will have only one tax record for both agencies. Please advise the employee accordingly and update the Employee State and Local Tax Data pages based on the Form IT-2104.

 

If an employee is concurrently hired or rehired into a different company (e.g. CUNY and NYS), the employee will have a tax record for each company. The agency must update the Employee Tax Data page based on the Form IT-2104.

Note regarding Address Verification

OSC will issue a Payroll Bulletin regarding verification of addresses for:

  • Employees with NYC zip codes who do not have withholdings for NYC local taxes
  • Employees with NYC local tax withholdings who do not have NYC zip codes.

Further instructions will accompany the Payroll Bulletin.

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