Purpose

To advise agencies of the income tax withholding rate increase effective July 1, 2003 announced by the NYS Department of Taxation and Finance.

Affected Employees

• Single status employees with annual taxable wages in excess of $100,000.
• Married status employees with annual taxable wages in excess of $150,000.

Effective Dates

Administration checks dated July 2, 2003

Institution checks dated July 10, 2003

Tax Tables

The New York State Payroll System calculates taxes based on the annual table. The withholding rate changes can be found in the publication NYS-50-ADD (6/03). To obtain a copy of this publication visit the NYS Department of Taxation website at http://www.tax.ny.gov/ and select Forms and Publications/Forms & Instructions>Current Year Forms & Instructions/Withholding Tax>NYS-50-ADD.

Attached to this bulletin are the sections of the old and new tax tables, and examples of how these rate changes will impact the amount of taxes withheld from the paycheck on an annual basis.

Employees who are subject to the City of Yonkers Resident Tax will notice a slight increase in this tax since it is equal to 5% of the calculated amount of the New York State tax.

The City of Yonkers nonresident earnings tax rate has not changed.

Questions

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

• Attachment 1 - New York State - Single Tax Table
• Attachment 2 - New York State - Married Tax Table
• Attachment 3 - City of New York - Single Tax Table
• Attachment 4 - City of New York - Married Tax Table