State Agencies Bulletin No. 1801

Subject
2019 New York City Reportable Wages
Date Issued
December 20, 2019

Purpose

The purpose of this bulletin is to inform agencies of an updated process for calculating New York City reportable wages for the 2019 W-2s and required notification of certain employees.

Affected Employees

Employees paid in 2019 whose PayServ Home Address was in New York City or had New York City taxes withheld in 2019 are affected.

Effective Date(s)

Effective immediately.

Background

Pursuant to Bulletin 863 and Publication NYS-50, OSC will report New York City reportable wages in Box 18 of an employee’s 2019 Form W-2 based on an employee’s home address. Only employees who had a home address in Bronx, Kings, New York, Queens or Richmond county in 2019, and were paid while at this address, will have New York City wages reported on their Form W-2s.

If an employee lived in New York City for part of the calendar year, the New York City reportable wages will reflect the taxable gross earned while in New York City.

Box 19, New York City income tax withholding, will reflect the amount deducted from the employee’s paychecks during 2019.

An employee’s Form W-2 will report wages in Box 18 and taxes in box 19 if the following is true:

  • The employee was paid while the home address was in the five counties listed above in 2019; and
  • The employee’s Resident checkbox was checked and the Locality was populated with ‘P0001’ on the Local Tax Data page when the employee was paid and the home address was in New York City in 2019.

If an employee’s Resident box status on the Local Tax Data page did not reflect the home address when the employee was paid in 2019, then New York City wages and taxes may not be aligned. As detailed in Agency Actions, agencies must verify the home addresses of these employees.

Agencies are reminded that the NPAY708 and NPAY709 Control-D reports are posted weekly for agency review and action.

It is the employee’s responsibility to file their New York City residence correctly on their tax forms.

Agency Actions

On December 23, 2019, OSC will post a PayServ bulletin board message with a link to spreadsheets for agency review. There will be two spreadsheets for review:

  • Employees with New York City Reportable Wages and No New York City Taxes, and
  • Employees with New York City Taxes and No New York City Reportable Wages.

Agencies must review both spreadsheets, verify the addresses of their employees, and email the Tax and Compliance mailbox with any necessary corrections by January 3, 2020. Agencies should also notify employees that their New York City reportable wages will reflect their home address when paid in 2019.

Employees with New York City Reportable Wages and No New York City Taxes

An employee’s Form W-2 will report wages in Box 18 and no taxes in Box 19 if the following is true:

  • The employee’s home address was in the Bronx, Kings, New York, Queens or Richmond county in 2019;
  • The Resident checkbox was not checked and/or the Locality was not populated with ‘P0001’ on the Local Tax Data page when the employee was paid and living in New York City in 2019; and
  • The employee had no New York City taxes deducted from paychecks in 2019.

(This population will appear on the spread sheet.)

Or

  • The employee’s home address was in the five counties above in 2019; and
  • The Resident checkbox was checked and the Locality was populated with ‘P0001’ on the Local Tax Data page when the employee was paid and living in New York City in 2019; and
  • The employee’s wages did not meet the minimum taxable gross for tax withholding on their paychecks.

(This population will not appear on the spreadsheet.)

Employees with New York City Taxes and No New York City Wages

An employee’s Form W-2 will report no wages in Box 18 and taxes in Box 19 if the following is true:

  • The employee’s home address was not in Bronx, Kings, New York, Queens or Richmond county in 2019; and
  • The employee’s Resident checkbox was checked and the Locality was populated with ‘P0001’ on the Local Tax Data page when the employee was paid and not living in New York City in 2019; and
  • The employee had New York City taxes deducted from paychecks in 2019.

(This population will appear on the spreadsheet.)

Questions

Questions regarding this bulletin should be directed to the Tax and Compliance mailbox.