This week’s question comes from Terry, a small business owner in New York City. My net pay is the same every week, but last week’s net pay changed. Upon further review, the difference is because the withholding tax for New York City increased from the week before. Why did my NYC withholding go up? Answer: Effective September 1, 2010, new withholding tables went into effect for New York City withholding.
Increase Affects Employees Earning $500,000 or More per Year
The change in withholding affects taxpayers who make $500,000 or more per year. Tax must be withheld according to Publication NYS-50-T.2, Revised New York City Withholding Tax Computation Rules.
New York State and Yonkers Withholding not Affected
The New York State personal income tax rates, Yonkers resident personal income surcharge tax rate, and Yonkers nonresident earnings tax rate have not changed. Employers should continue to use the methods in Publications NYS-50-T (dated 1/06) and NYS-50-T.1 (dated 1/10) to determine the amounts to be withheld for these taxes.
Vision Payroll Has Updated Withholding Tables in Use
Effective September 1, 2010, Vision Payroll is using the revised withholding calculations for all affected taxpayers.