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NY State Tax Withholding Changes Effective January 1, 2010

January 1, 2010 - Payroll

Keywords: withholding, sales tax, W-4

New York State has modified personal income tax withholding rates, effective January 1, 2010. The changes will effect certain tax payers and recipients of supplemental earnings. The new supplemental tax rate is 9.77% (old = 11.03%).

In certain circumstances (such as employees who have more than one job, or married employees if both spouses work), the new rules may result in an insufficient amount of tax being withheld for New York State and Yonkers. In these situations, completing a revised Form IT-2104 to prevent under-withholding is suggested. Also, employees who filed a 2009 Form IT-2104 (dated 4/09) based on the tax rate increase for tax year 2009 should complete a new 2010 Form IT-2104. For more information, see New York State Publication NYS-50-T.1, Revised New York State and Yonkers Withholding Tax Computation Rules.

Employees can use the W-4 Self Service application to make changes to both federal and state withholding allowances. Please note, however, that if the desire is to have state withholding be different than federal withholding, a paper Form IT-2104 must be submitted, as changes made using the W-4 Self Service application apply to both state and federal withholding.

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