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Summary of differences between federal and state regulations
Income tax withholding
Every employer maintaining an office or transacting business in New York and paying any wages taxable under Article 22 to a resident or nonresident individual must deduct and withhold taxes from those wages for each payroll period. The tax must be computed in such manner as to result in withholding from the employee`s wages during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due resulting from the inclusion in the employee`s New York adjusted gross income of wages received during the calendar year. The method of determining the amount to be withheld will be prescribed by regulations of the tax commission, with due regard to the New York withholding exemptions of the employee and the sum of any credits allowable against the tax.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $8,500.
Minimum and maximum rates in this state are 0.9 and 8.9 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Department of Taxation and Finance
Unemployment taxes
Department of Labor
Regulations
Income tax withholding
Tax Laws, Article 22 Personal Income Tax; Part V (671-678)
Unemployment taxes
Title 12, New York Codes, Rules and Regulations; Subchapter B, Unemployment Insurance