Services performed partly in Yonkers

If a Yonkers nonresident employee performs services partly in Yonkers, only wages for services performed inside Yonkers are subject to withholding of Yonkers nonresident earnings tax. For purposes of withholding tax, the amount of wages allocable to Yonkers is that part of the total compensation that the total number of days worked in Yonkers bears to the total number of days worked both in and out of Yonkers, exclusive of nonworking days, normally considered to be Saturdays, Sundays, holidays, days of absence because of illness or personal injury, vacation or leave with or without pay. However, to figure the earnings of a traveling salesperson or other employee whose compensation depends entirely on the volume of business transacted, the amount allocable to Yonkers is that part of the compensation received that the volume of business transacted in Yonkers bears to the total volume of business transacted both in and out of Yonkers.

The nonresident employee should file Form IT-2104.1 with you. You may determine the portion of wages allocable to Yonkers for withholding on the basis of the portion shown on Form IT-2104.1 or you may determine it based on the preceding year. However, you must make any necessary adjustments during the year to ensure that the required amount of Yonkers tax is withheld for the current year.

If the employee reasonably expects that the preceding year’s experience will not apply to the current year, the employee may furnish you with Form IT-2104.1 estimating the wages allocable to Yonkers, or you may make such an estimate and withhold on that basis. In either case, however, you are required to make the necessary adjustments during the year so that the proper amount is withheld for the current year.

You are required to withhold on all wages paid to a Yonkers nonresident who works partly in Yonkers unless Form IT-2104.1 is completed by the employee, or you maintain adequate current records to determine the correct amount of wages from Yonkers sources.

Note: An employer may accept a completed Form IT-2104.1 as documentation of an employee’s nonresident status, as long as the employer does not have any actual knowledge or reason to know the certificate is incorrect or unreliable. For more information on Form IT-2104.1, see part K, Form IT-2104.1, New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax .

In situations where a nonresident or part-year resident employee whose assigned or primary work location is in Yonkers, performs services for an employer in Yonkers and at a home office located outside of Yonkers, see TSB-M-06(5)I , New York Tax Treatment of Nonresidents and Part-Year Residents Application of the Convenience of the Employer Test to Telecommuters and Others .