The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The supplemental withholding rate for New York City residents remains at 4.25%.įor additional information concerning this Alert, please contact: Accordingly, effective for payrolls made on or after January 1, 2016, employers that elect (or are required) to use Method II, Exact Calculation Method, must use the revised exact calculation method(s) in the revised Publication NYS-50-T-NYC due to changes in the line 7, Column 5 amounts in each of the tables. The newly released revised percentage method tables (Method II, Exact Calculation Method) are implemented over a twelve month period for the 2016 tax year, rather than the shorter implementation period required for tax year 2015. Because the income tax changes made by Chapter 59 relate to taxpayers with incomes over $500,000, only the percentage method tables (Method II, Exact Calculation Method) were affected, the wage bracket table method (Method I) tables were not.ĭescription of change effective January 1, 2016 Revised withholding tax computations were issued effective June 1, 2015.

Had the rule not been promulgated, use of the previous withholding tables could cause under-withholding for some taxpayers.Īs a result, the New York Department of Taxation and Finance has released an updated Publication NYS-50-T-NYC, New York City Withholding Tax Tables and Methods, for New York City employers, effective for wages paid on or after January 1, 2016.Īs we reported in Tax Alert 2015-817, Part B of Chapter 59 of the Laws of 2015 increased the rate of New York City personal income tax applicable to income over $500,000. The rule change benefits taxpayers by providing New York City withholding rates that more accurately reflect the current income tax rates. Proposed changes to the regulation that provides for the New York City income tax withholding tables effective Januare now released. New York City withholding tables for 2016 are revised

Nd withholding tax table for 2016