Purpose

To inform agencies of the change in the Yonkers resident personal income tax surcharge and supplemental tax withholding rates and of the revised New York State Form IT-2104, (Employee’s Withholding Allowance Certificate).

Affected Employees

Employees with a Locality of 84000 and the "Resident" box checked on the Local Tax Data page

*Please note that the nonresident tax withholding rates have not changed

Effective Date(s)

Institution paychecks dated May 5, 2011
Administration paychecks dated May 11, 2011

Background

Effective for the 2011 tax year, the Yonkers personal income tax surcharge has been increased from 10% to 15%. The supplemental withholding rate has been increased from .977% to 1.70%.

According to the Department of Taxation and Finance, and the new publication, NYS-50-T-Y, new withholding tables went into effect for paychecks dated on or after May 1, 2011. Since the surcharge rate change occurred in May but the liability is for the full year (January-December), the publication states that the personal income tax surcharge rate will be 17.5% for the remainder of 2011. The 17.5% rate should ensure that the proper amount is withheld for 2011. However, employers should encourage employees who completed a new Form IT-2104 prior to May 1, 2011, showing an additional amount of Yonkers withholding on line 5, to complete a revised Form IT-2104 to prevent under withholding.

OSC Actions

OSC will update the Yonkers withholding tax rate table with the rates prescribed in publication NYS-50-T-Y.

Agency Actions

Inform affected employees of the increase in the Yonkers withholding rate and the possible need to revise their previously submitted Form IT-2104.

Questions

Questions regarding this bulletin may be emailed to the Tax and Compliance mailbox.