New York Payroll Compliance Map

Email: nyc4ww@evershinecpa.com
or
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685

WWT – United States – New York Payroll Income Tax Deduction

WWT-US(NY)-01 WWT Tax Entity

Question from client:
Is the United States salary income tax levied in federal or states? Or both federal and states?
Are the federal and states personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
The U.S. federal government, and state and local governments in the U.S., use the pay-as-you-go (PAYG) method, also known as the pay-as-you-earn method (PAYE), to collect taxes through deductions from employment income paid to employees that employers must timely transmit to applicable revenue agencies.

Federal
There are several withholding tables applicable for different needs.
If you have an automated payroll system, the table below works for Forms W-4 for all prior, current, and future years.
This table also suitable for any amounts of wages and any number of withholding allowances claimed.
For Example:

Percentage method tables for Automated Payroll Systems (Standard)

Filing Status	Adjusted Annual Wage Amount (USD)		The tentative amount to withhold is: (USD)	Plus this percentage	of the amount that the Adjusted Annual Wage exceeds (USD)
	At least	But less than
Single or Married Filing Separately	0	3,950	0	0%	0
	3,950	13,900	0	10%	3,950
	13,900	44,475	995	12%	13,900
	44,475	90,325	4,664	22%	44,475
	90,325	168,875	14,751	24%	90,325
	168,875	213,375	33,603	32%	168,875
	213,375	527,550	47,843	35%	213,375
	527,550		157,804.25	37%	527,550
Married Filing Jointly	0	12,200	0	0%	0
	12,200	32,100	0	10%	12,200
	32,100	93,250	1,990	12%	32,100
	93,250	184,950	9,328	22%	93,250
	184,950	342,050	29,502	24%	184,950
	342,050	431,050	67,206	32%	342,050
	431,050	640,500	95,686	35%	431,050
	640,500		168,993.50	37%	640,500
Head of Household	0	10,200	0	0%	0
	10,200	24,400	0	10%	10,200
	24,400	64,400	1,420	12%	24,400
	64,400	96,550	6,220	22%	64,400
	96,550	175,100	13,293	24%	96,550
	175,100	219,600	32,145	32%	175,100
	219,600	533,800	46,385	35%	219,600
	533,800		156,355	37%	533,800

States – New York

An employer must use one of the 3 approved methods which provide for withholding based on weekly, biweekly, semimonthly, monthly, and daily payroll periods for single and married taxpayers.

Method II – Exact Calculation Method (For example, Monthly)

SINGLE
Line	Net wages (after deductions and exemptions) ($)		Subtract Column 3 amount from net wages ($)	Multiply the result Column 4 amount ($)	Add the result to Column 5 amount. Withhold the resulting sum ($)
	At least	But less than
	Column 1	Column 2	Column 3	Column 4	Column 5
1	0	708	0	0.0400	0
2	708	975	708	0.0450	28.33
3	975	1,158	975	0.0525	40.33
4	1,158	6,721	1,158	0.0585	50.00
5	6,721	8,067	6,721	0.0625	375.33
6	8,067	8,971	8,067	0.0732	459.50
7	8,971	13,138	8,971	0.0782	525.67
8	13,138	17,950	13,138	0.0675	851.58
9	17,950	22,117	17,950	0.0994	1,176.42
10	22,117	89,796	22,117	0.0735	1,590.42
11	89,796 & over		Use Method III

If the annualized amount of net wages is at least $1,077,550, then you must use Method III to determine the amount to withhold.

MARRIED
Line	Net wages (after deductions and exemptions) ($)		Subtract Column 3 amount from net wages ($)	Multiply the result Column 4 amount ($)	Add the result to Column 5 amount. Withhold the resulting sum ($)
	At least	But less than
	Column 1	Column 2	Column 3	Column 4	Column 5
1	0	708	0	0.0400	0
2	708	975	708	0.0450	28.33
3	975	1,158	975	0.0525	40.33
4	1,158	6,721	1,158	0.0585	50.00
5	6,721	8,067	6,721	0.0625	375.33
6	8,067	8,971	8,067	0.0711	459.50
7	8,971	13,138	8,971	0.0761	523.75
8	13,138	17,629	13,138	0.0804	840.83
9	17,629	26,933	17,629	0.0675	1,202.08
10	26,933	31,100	26,933	0.1123	1,830.08
11	31,100	89,796	31,100	0.0735	2,298.00
12	89,796	179,613	89,796	0.0765	6,612.17
13	179,613 & over		Use Method III

If the annualized amount of net wages is at least $2,155,350, then you must use Method III to determine the amount to withhold.

Method III – Top Income Tax Rates Method

SINGLE TABLE
Line	Annualized wages ($)		Multiply annualized wages by Column 3 amount
	At least	But less than
	Column 1	Column 2	Column 3
1	1,077,550	5,000,000	0.1045
2	5,000,000	25,000,000	0.1110
3	25,000,000		0.1170

 

MARRIED TABLE
Line	Annualized wages ($)		Multiply annualized wages by Column 3 amount
	At least	But less than
	Column 1	Column 2	Column 3
1	2,155,350	5,000,000	0.1045
2	5,000,000	25,000,000	0.1110
3	25,000,000		0.1170

WWT-US(NY)-02 Registration

Question from client:
The United States salary income tax collection is under the jurisdiction of which government unit?
The registration of the United States salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:

Federal
United States payroll tax is administered under Internal Revenue Service (IRS).
Employers must have an employer identification number (EIN) before remitting forms and withheld taxes to the IRS.
Employers can apply for an EIN online using the IRS website, by calling 800-829-4933, or by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS.
Often, the employer’s federal tax identification number is used as the state identification number.

States – New York
The tax is administered by the Department of Taxation and Finance, Income Tax Bureau.
Prior to obtaining an Employer Registration Number from the NYS Department of Labor, you must obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service (IRS).
To register with the state, employers should complete and submit Form NYS-100, New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting.
Register online through New York Business Express (NYBE) via https://my.ny.gov/SelfRegV3/selfregbusiness.xhtml Average processing time is 5 days.
After registration, employer is assigned an 8-digit employer registration number.
Employers are required to report new hired employees using Form IT-2104 via https://www.nynewhire.com/#/login within 20 days of the date of hire.

WWT-US(NY)-03 WWT Order (OD)

Question from client:
What is the order of United States salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare?
Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit First (DF): Make monthly payments then file the required forms.

WWT-US(NY)-04 Mechanism of Filing (MOF)

Question from client:
United States’ salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Federal
Form 941, Employer’s Quarterly Federal Tax Return, report on federal income tax, social security, or Medicare taxes for each quarter.
Forms W-2, Wage and Tax Statement, to report wages paid to employee each year.
It must be distributed to employees by Jan. 31 of the next year.
Also, file Copy A of all paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the Social Security Administration (SSA).
File Copy 1 to an employee’s state or local tax department.
To submit an employment tax form, you need to purchase IRS-approved software.
The software will require your signature to e-file the return. You need to apply for an online signature PIN.
Alternatively, you can use the authorized IRS e-file Provider Locator Service to find a tax professional to submit your forms.

States – New York

All employers must file withholding returns electronically.
Tax department offers 3 methods to file withholding tax returns electronically.

1. Tax Department Web File
2. Tax Department Web Upload
3. FSET (Federal/ State Employment Taxes) compatible software

Filing Frequency	Withholding amount in a calendar quarter	Filing Period end	Filing Deadline	Forms
Quarterly	Below $700 in a calendar quarter	January 1 to March 31 April 1 to June 30 July 1 to September 30 October 1 to December 31	April 30 July 31 October 31 January 31	NYS-45
5 Day filer	$700 to $15,000 in previous calendar year	NYS-1 is due within 5 business days when the tax withheld is $700 or more.
3 Day filer	More than $15,000 in previous calendar year	NYS-1 is due within 3 business days when the tax withheld is $700 or more.

Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return.
Form NYS-1, Return of Tax Withheld.

WWT-US(NY)-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the United States salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Answer from Evershine RD:

Federal
Due date is the same as filing date.
File and Pay at EFTPS via https://www.eftps.gov/eftps/.

States – New York
Employers that withheld at least $100,000 in the previous year must remit withheld taxes by EFT, through the PrompTax system.
Other employers may request EFT payments.
Employers may use ACH debit, ACH credit or Fedwire.
Employers also may satisfy the PrompTax requirement by filing paper forms and a certified check.

Filing Frequency	Withholding amount in a calendar quarter	Payment Period	Payment Deadline	Forms
Quarterly	Below $700 in a calendar quarter	January 1 to March 31 April 1 to June 30 July 1 to September 30 October 1 to December 31	April 30 July 31 October 31 January 31	NYS-45
5 Day filer	$700 to $15,000 in previous calendar year	NYS-1 payment is due within 5 business days when the tax withheld is $700 or more.
3 Day filer	More than $15,000 in previous calendar year	NYS-1 payment is due within 3 business days when the tax withheld is $700 or more.

Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return.
Form NYS-1, Return of Tax Withheld.

BNF – Deduction of Employee Social Welfare

BNF-US(NY)-01 BNF Entity

Question from client:
United States social insurance, medical insurance, pensions, and other employee social welfare levy, is it federal?
Is it states? Or is there a federal plus states? If there is a federal and states, are they levied separately?
Or levied together? What is the withholding tax rate?

Answer from Evershine RD:
United States social security levied at both federal and states level.

Federal

The federal government enacts laws regarding social taxes under Federal Insurance Contributions Act (FICA), and unemployment taxes under the Federal Unemployment Tax Act (FUTA).
All states, the district and territories are required to assess their own unemployment tax as part of the FUTA program.

Social Security Taxes	Employee	Employer	Maximum wage base (annual)
FICA: Social Security Tax/ OASDI Tax	6.2%	6.2%	$147,000
FICA: Medicare Tax/ Hospital Insurance (HI)	1.45% + 0.9% on excess annual wage $200K	1.45%	$200,000 (Single), $250,000 (Married filing jointly), $125,000 (Married filing separate)
FUTA: Federal Unemployment Tax	N/A	6% (reduced by credit deduction of 5.4% maximum)	$7,000

States – New York

Social Security Taxes	Employee	Employer	Taxable wage base
Unemployment Insurance	N/A	Normal rate: 2.1% to 9.9% New Employer rate: 4.10%	Annual: $12,000
Disability Insurance	0.50%	Difference between benefit cost and employee contribution	Weekly: $120

BNF-US(NY)-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Do I Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Answer from Evershine RD:

Federal

The Internal Revenue Service (IRS) oversees collection of FICA (and FUTA) taxes while employers are required to annually report individual covered wage amounts and FICA (and FUTA) taxes withheld to the U.S. Social Security Administration (SSA).
The SSA administers the Social Security benefits program.
Employers can register for an employer identification number (EIN) through online using the IRS website, by calling 800-829-4933, or by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS.

States – New York

Unemployment Insurance

Prior to obtaining an Employer Registration Number from the NYS Department of Labor, you must obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service (IRS).
All new employers must register with the state Department of Labor by filing Form NYS-100, Employer Registration Form for Unemployment Insurance, Withholding and Wage Reporting.

Register online through New York Business Express (NYBE) via https://my.ny.gov/SelfRegV3/selfregbusiness.xhtml
Average processing time is 5 days.
After registration, employer is assigned an 8-digit employer registration number.
Employers are required to report new hired employees within 20 days of the date of hire.
Online registration through New York Business Express (NYBE). Sign in or create a NY.gov account.

Temporary Disability Insurance
The New York Disability Benefits Law is administered by the New York Workers’ Compensation Board.
New York state requires employers to provide disability coverage such as temporary cash benefits to employees when he or she is disabled by illness or injury.
Insurance policies can be obtained through a private insurance carrier, State Insurance Fund, or becoming self-insured.

BNF-US(NY)-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for United States employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period: Report and pay at the same time.

BNF-US(NY)-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for United States employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season?
Every half year? Per year? Electronic filing? Manual filing?
Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Federal
Form 941, Employer’s Quarterly Federal Tax Return, report on federal income tax, social security, or Medicare taxes for each quarter.
Report FUTA taxes by filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. Due by Jan 31 of the following year.
To submit employment tax form, you need to purchase IRS-approved software.
The software will require your signature to e-file the return. You need to apply for an online signature PIN.
Alternatively, you can use the authorized IRS e-file Provider Locator Service to find a tax professional to submit your forms.

States – New York

Unemployment Insurance
Use Form NYS-45 to file the Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return.

Filing Frequency	Filing Period end	Filing Deadline
Quarterly	January 1 to March 31 April 1 to June 30 July 1 to September 30 October 1 to December 31	April 30 July 31 October 31 January 31

An unemployment tax and wage report must be submitted to the state Department of Taxation and Finance.
Employers with up to 1,000 employees may use NYS-45 Web File to complete the three primary components of Form NYS-45.
Third-party administrators reporting unemployment tax and wage information for at least 50 employers may file the three primary components of Form NYS-45 using NYS-45 Web Upload.
The reports also may be submitted electronically to the Department of Taxation and Finance through the Federal/State Employment Taxes (FSET) program.

Temporary Disability Insurance
Disability Benefits and Paid Family Leave Benefits premiums are initially based on a payroll projection at the beginning of the policy period.
However, since payroll can change over the period, a payroll report must be submitted within 30 days of the end of the period to align your premium to your actual payroll.
Online Payroll can be reported online if you have an account at nysif.com. Login to https://identity.nysif.com/login/

BNF-US(NY)-05 Mechanism of Payment (MOP)

Question from client:

What is the funding method for United States employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Answer from Evershine RD:

Federal
Due date is the same as filing date.
File and Pay at EFTPS via https://www.eftps.gov/eftps/.

States – New York
Unemployment Insurance
Unemployment tax payments must be submitted to the state Department of Taxation and Finance.

Filing Frequency	Filing Period end	Payment Deadline
Quarterly	January 1 to March 31 April 1 to June 30 July 1 to September 30 October 1 to December 31	April 30 July 31 October 31 January 31

Employers are required to pay unemployment tax with ACH debit.
Employers that file reports with NYS-45 Web File may pay unemployment tax with ACH debit transactions established through that portal.
ACH debit generally is the required method for paying unemployment tax in conjunction with filing tax and wage data through FSET.

Temporary Disability Insurance
Login to https://identity.nysif.com/login/ to make payment.

Please be aware below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

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Email: nyc4ww@evershinecpa.com
or
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Tel: +1-510-996-2685

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