S T A T E   O F   N E W   Y O R K
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                                  6700

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 25, 2011
                               ___________

Introduced by M. of A. TENNEY -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to increasing the threshold for
  employer's return and payment of withheld taxes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs 1 and 2 of subsection (a) of section 674 of  the
tax  law,  paragraph  1  as added by chapter 166 of the laws of 1991 and
paragraph 2 as amended by chapter 477 of the laws of 1998,  are  amended
to read as follows:
  (1)  If, after having made a payroll, an employer has been required to
deduct and withhold, but has  not  paid  over,  a  cumulative  aggregate
amount  of  [seven hundred] ONE THOUSAND dollars or more of tax during a
calendar quarter, such employer shall file a return  and  pay  over  the
tax.  If an employer was required to remit a cumulative aggregate amount
of less than fifteen thousand dollars  in  withholding  tax  during  the
calendar  year  which precedes the previous calendar year, the tax shall
be paid over on or before the fifth business day following the  date  of
making such a payroll. If an employer was required to remit a cumulative
aggregate amount more than or equal to fifteen thousand dollars in with-
holding  tax during the calendar year which precedes the previous calen-
dar year, the tax shall be paid over on or before the third business day
following the date of making such a payroll. In the case of  an  "educa-
tional  organization"  as  defined in paragraph two of subsection (a) of
section nine of this chapter or a "health care provider" as  defined  in
paragraph  four  of  subsection (a) of section nine of this chapter, the
tax shall be paid over on or before the fifth business day following the
date of making such a payroll.
  (2) If, at the close of any calendar quarter,  an  employer  has  been
required  to  deduct  and  withhold, but has not paid over, a cumulative
aggregate amount of less than [seven hundred] ONE  THOUSAND  dollars  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09834-01-1
              

A. 6700                             2

tax  during  such calendar quarter, such employer shall pay over the tax
with the quarterly combined withholding, wage reporting and unemployment
insurance return required to be filed for such quarter by paragraph four
of  this subsection, on or before the last date prescribed by such para-
graph for filing such return.
  S 2. This act shall take effect January 1, 2012, and  shall  apply  to
all taxes required to be deducted and withheld on and after such date.