New York Law Requires Quarterly Withholding Tax Reporting

New York State recently enacted 2018-2019 Fiscal Year Budget Bill that requires employers to report withholding tax information per employee on a quarterly basis effective with the first quarter of 2019. 

Currently, employers report the state unemployment insurance (SUI) details on a quarterly basis to the Department of Taxation and Finance with employee’s name, Social Security number along with taxable wages. While, the withholding tax reporting per employee is reported on an annual basis as a combined return in the fourth quarter containing information of employee’s annual total federal gross wages that are subject to the state/local income tax withholding for the year; including the annual total amount of New York State, New York City and Yonkers tax withheld. Correspondingly, employers are not required to submit Forms W-2 to the Department 

Highlights of the New Law

Employers will be required to report the state/local income tax withholding details per employee on quarterly basis effective in 2019. All employers are required to file the Form NYS-45 electronically over the Department’s Withholding Tax Web File System. The agency plans to issue detailed information on the new reporting requirements as the effective date get closer. Paylocity will support this new requirement for all tax service clients and will provide updates once additional information is available. 

Please visit the following links for more information: 

Form NYS-45 

Electronic Filing Requirements 

Governor’s FY 2018-2019 Budget Bill 

Governor’s FY 2019 Executive Budget 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager. 

This information is provided as a courtesy, 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. 

Date Posted:May 09, 2018