New York State resident employees

All deferred compensation and compensation attributable to nonstatutory stock options that are considered wages for federal income tax purposes are subject to withholding, even if the compensation is attributable to services performed outside of New York State. This rule also applies to withholding New York City resident income tax and Yonkers resident tax surcharge if the employee is also a resident of New York City or Yonkers, and Yonkers nonresident earnings tax if the compensation is attributable to services performed in Yonkers.