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This entry was published on 2019-04-19
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SECTION 671
Requirement of withholding tax from wages
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 5
§ 671. Requirement of withholding tax from wages. (a) General. (1)
Every employer maintaining an office or transacting business within this
state and making payment of any wages taxable under this article shall
deduct and withhold from such wages for each payroll period a tax
computed in such manner as to result, so far as practicable, in
withholding from the employee's wages during each calendar year an
amount substantially equivalent to the tax reasonably estimated to be
due under this article resulting from the inclusion in the employee's
New York adjusted gross income or New York source income of his wages
received during such calendar year. The method of determining the amount
to be withheld shall be prescribed by regulations of the commissioner,
with due regard to the New York withholding exemptions of the employee
and the sum of any credits allowable against his tax.

(2) The tax commission may provide, by regulations, for withholding--

(A) from remuneration for services performed by an employee for his
employer which does not constitute wages, and

(B) from any other type of payment, with respect to which the tax
commission finds that withholding would be appropriate under the
provisions of this article,
if the employer and the employee, or in the case of any other type of
payment the person making and the person receiving the payment, agree to
such withholding. Such agreement shall be made in such form and manner
as the tax commission may by regulations provide. For purposes of this
article, remuneration or other payments with respect to which such
agreement is made shall be treated as if they were wages paid by an
employer to an employee to the extent that such remuneration is paid or
other payments are made during the period for which the agreement is in
effect.

(3) The tax commission shall provide by regulation for an exemption
from withholding for (i) employees under eighteen years of age, (ii)
employees under twenty-five years of age who are full-time students and
(iii) employees over sixty-five years of age, provided such employees
had no income tax liability in the prior year and can reasonably
anticipate none in the current year.

* (b) Extension of withholding to certain periodic payments and
gambling winnings.

(1) For purposes of this article, any payment subject to withholding,
within the meaning of paragraph two of this subsection, shall be treated
as if it were wages paid by an employer to an employee.

(2) Payments subject to withholding. For purposes of paragraph one of
this subsection, a payment subject to withholding means:

(A) Any supplemental unemployment compensation benefit paid to an
individual to the extent includible in such individual's New York
adjusted gross income or New York source income.

** (B) Any member or employee contributions to a retirement system or
pension fund picked up by the employer pursuant to subdivision f of
section five hundred seventeen or subdivision d of section six hundred
thirteen of the retirement and social security law or section 13-225.1,
13-327.1, 13-125.1, 13-125.2 or 13-521.1 of the administrative code of
the city of New York or subdivision nineteen of section twenty-five
hundred seventy-five of the education law and any member or employee
contributions to a retirement system or pension fund picked up or paid
by the employer for members of the Manhattan and Bronx surface
transportation authority pension plan and treated as employer
contributions in determining income tax treatment under section 414(h)
of the Internal Revenue Code.

** NB Effective until ch 525/2011 § 4 takes effect

** (B) Any member or employee contributions to a retirement system or
pension fund picked up by the employer pursuant to subdivision f of
section five hundred seventeen, subdivision d of section six hundred
thirteen or section twelve hundred four-a of the retirement and social
security law or section 13-225.1, 13-327.1, 13-125.1, 13-125.2 or
13-521.1 of the administrative code of the city of New York or
subdivision nineteen of section twenty-five hundred seventy-five of the
education law and any member or employee contributions to a retirement
system or pension fund picked up or paid by the employer for members of
the Manhattan and Bronx surface transportation authority pension plan
and treated as employer contributions in determining income tax
treatment under section 414(h) of the Internal Revenue Code.

** NB Effective when ch 525/2011 § 4 takes effect until expiration per
ch 681/1992 § 16

** (B) Any member or employee contributions to a retirement system or
pension fund picked up by the employer pursuant to subdivision f of
section five hundred seventeen or subdivision d of section six hundred
thirteen of the retirement and social security law or section 13-225.1,
13-327.1 or 13-125.1 of the administrative code of the city of New York.

** NB Effective upon expiration of ch 681/1992 § 16

(C) Any payment of an annuity to an individual to the extent
includible in such individual's New York adjusted gross income or New
York source income, if at the time the payment is made a request that
such annuity be subject to withholding under this article is in effect.

(D) Any payment of winnings from a wager placed in a lottery conducted
by the division of the lottery, if the proceeds from such wager exceed
five thousand dollars.

(E) Any gambling winnings from a wagering transaction within this
state, if the proceeds from the wager are subject to withholding under
section three thousand four hundred two of the internal revenue code.

(F) Any amount deducted or deferred from an employee's salary under a
flexible benefits program established pursuant to section twenty-three
of the general municipal law or section one thousand two hundred ten-a
of the public authorities law.

(G) Any amount by which an employee's salary is reduced pursuant to
the provisions of subdivision b of section 12-126.1 and subdivision b of
section 12-126.2 of the administrative code of the city of New York.

(3) Additional provisions applicable to this subsection.

(A) Request for annuity withholding. A request that an annuity be
subject to withholding under this article shall be made by the payee in
writing to the person making the annuity payments. Such a request may,
notwithstanding any provision of law to the contrary, be terminated by
furnishing to the person making the payments a written statement of
termination. Such a request for withholding or statement of termination
shall take effect in such manner as the commissioner of taxation and
finance shall prescribe.

(B) Withholding on lottery winnings upon change of residence. If a
payee of lottery winnings subject to the provisions of subparagraph (D)
of paragraph two of this subsection changes status from resident to
nonresident, withholding in accordance with such subparagraph shall
constitute other security acceptable to the commissioner within the
meaning of subsection (d) of section six hundred thirty-nine of this
article.

(C) Proceeds. For purposes of subparagraphs (D) and (E) of paragraph
two of this subsection, proceeds from a wager shall be determined by
reducing the amount received by the amount of the wager.

(D) Taxes withheld at maximum rate. The tax withheld on any payment
subject to withholding under subparagraph (D) or (E) of paragraph two of
this subsection shall be withheld at the highest rate of tax on New York
taxable income, without any allowance for deductions or exemptions, in
effect under this article for the taxable year in which the payment is
made.

(E) Determination of residence. For purposes of applying the
provisions of subparagraphs (D) and (E) of paragraph two of this
subsection, any payor of proceeds shall determine the residence of the
payee of such proceeds in accordance with regulations or instructions of
the commissioner of taxation and finance or, in the absence of any such
regulations or instructions, in accordance with the address of the payee
required under the provisions of paragraph six of subsection (q) of
section thirty-four hundred two of the internal revenue code.

* NB Expires per ch. 782/88 § 8

* (b) Extension of withholding to unemployment compensation benefits,
annuity payments, and lottery winnings.--

(1) For purposes of this article--

(A) any supplemental unemployment compensation benefit paid to an
individual to the extent includible in such individual's New York
adjusted gross income or New York source income,

(B) any payment of an annuity to an individual to the extent
includible in such individual's New York adjusted gross income or New
York source income, if at the time the payment is made a request that
such annuity be subject to withholding under this article is in effect,
and

(C) any periodic payment (but only where such payment is part of a
series of payments extending over a period greater than one year) of
lottery winnings by the division of the lottery, if at the time the
payment is made a request that such lottery winnings be subject to
withholding under this article is in effect, shall be treated as if it
were a payment of wages by an employer to an employee for a payroll
period.

(2) Request for withholding.--A request that an annuity be subject to
withholding under this article shall be made by the payee in writing to
the person making the annuity payments, and a request that lottery
winnings be subject to withholding under this article shall be made by
the payee in writing to the division of the lottery, in the manner
prescribed by the commissioner of taxation and finance. A request that
an annuity be subject to withholding may, notwithstanding any provision
of law to the contrary, be terminated by furnishing to the person making
the payments a written statement of termination. A request that lottery
winnings be subject to withholding under this article shall not be
revocable while the payee is a nonresident, and shall constitute other
security acceptable to the tax commission within the meaning of
paragraph four of subsection (c) of section six hundred fifty-four of
this article. Such a request for withholding or statement of termination
shall take effect in such manner as the commissioner of taxation and
finance shall provide by regulation.

* NB Effective per ch. 782/88 § 8

(c) Withholding exemptions. For purposes of this section:

(1) The number of New York withholding exemptions which an employee
receiving wages taxable under this article may claim shall not exceed
the number of New York exemptions allowed pursuant to the provisions of
section six hundred sixteen and such additional New York withholding
exemptions as may be prescribed by regulations or instructions of the
commissioner of taxation and finance, taking into account the applicable
standard deduction and such other factors as he finds appropriate.

(2) The amount of each New York withholding exemption shall be the
amount of the New York exemption allowed pursuant to the provisions of
section six hundred sixteen.

(3) Withholding exemption certificate. An employee shall be required
to file with his employer a withholding exemption certificate in accor-
dance with regulations or instructions prescribed by the commissioner of
taxation and finance.