NY State & Yonkers 2021 Withholding Tables Revision

At a Glance

• As a result of the 2021 budget that was signed on April 19, 2021, New York State and the city of Yonkers have revised their withholding tables.

Withholding Update

As a result of the 2021 budget that was signed on April 19, 2021, New York State and the city of Yonkers have revised their withholding tables. The changes impact taxpayers with following taxable income:

• Greater than $2,155,350 (married filing jointly, or a qualifying widow/widower)
• Greater than $1,077,550 (single or married but filing separately)
• Greater than $1,616,450 (head of household)

Employers with employees earning greater than the amounts indicated, the revised withholding computation rules may impact payrolls made on or after July 1, 2021. If an employer withholds income tax from an employee's regular wages, one of the following methods can be used to calculate the withholding for the supplemental wages:

• (A) - Withhold at the New York State supplemental rate of 13.78% (0.1378) or
• (B) - Add the supplemental and regular wages for the most recent payroll period this year.

Then figure the income tax withholding as if the total were a single payment. Subtract the tax already withheld from the regular wages. Withhold the remaining tax from the supplemental wages. 

Employers who did not withholding income tax from the employee's regular wages should use "method (B)." The rate for Yonkers supplemental withholding is 2.30815% (residents) and 0.50% (nonresidents).

Next Steps

Paylocity is closely monitoring this agency and will provide updates as they become available. Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

This information is provided as a courtesy, it may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.