E. Income subject to withholding

Compensation that is considered as wages for federal income tax withholding purposes, including tips, supplemental unemployment compensation benefits, deferred compensation, and nonstatutory stock options, is generally considered wages for purposes of withholding New York State income tax, New York City income tax, Yonkers resident tax surcharge, and Yonkers nonresident earnings tax unless an allocation or exception is specifically required or provided for New York State, New York City, or Yonkers purposes.

With the exception of certain annuity payments, income that is reported on federal Forms 1099 is not subject to New York State withholding tax and there are no provisions in the Tax Law for such withholding. Pension and annuity income reported on federal Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. , is subject to withholding if the annuitant requests New York State, New York City, or Yonkers withholding by filing Form IT-2104-P , Annuitant’s Request for Income Tax Withholding , with the payer. For more information on income tax withholding on annuities, see part P, Determining withholding tax , and the instructions for Form IT-2104-P.

Employers of household help – Withholding income tax from wages paid to household employees is voluntary on your part. If you and your employee voluntarily agree, you may withhold for New York State income tax, New York City income tax, Yonkers resident tax surcharge, or Yonkers nonresident earnings tax, whichever may apply. For more information about your wage reporting and withholding responsibilities, see section 2, part D, Employers of household help , and New York State bulletin TB-MU-350 , Hiring Household Help .