New York State (NYS) has modified personal income tax withholding rates effective January 1, 2012. The changes will effect certain tax payers and recipients of supplemental earnings. The new supplemental tax rate is 9.62% (old = 9.77%).
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, completion of a revised Form IT-2104 to prevent under-withholding is suggested. Also, employees who filed a 2011 Form IT-2104 based on the tax rate increase for tax year 2011 should complete a new 2012 Form IT-2104. For more information, see New York State's Withholding Tax Computation Rules, Tables and Methods documents.
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 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.
If you have personal tax questions or concerns, please contact a personal tax adviser. For general tax questions, please contact Kim Cassell, 255-9467 or Lori Kanellis, 255-9465.
