S. Certificate of exemption from withholding

Exemption from withholding of New York State, New York City, and Yonkers resident taxes is available for employees who meet the requirements of Tax Law § 671(a)(3), or who qualify as a military spouse exempt from New York State income tax under the Servicemembers Civil Relief Act (SCRA).

Tax Law § 671(a)(3) exempts employees under age 18 or over age 65, and full-time students under age 25, who had no New York income tax liability in their previous taxable year and expect none in the current year. See Form IT-2104-E , Certificate of Exemption from Withholding , for details.

Under the SCRA , an employee may be exempt from New York State income tax (and New York City and Yonkers personal income tax, if applicable) on their wages if: (1) the employee’s spouse is a member of the armed forces present in New York State in compliance with military orders; (2) the employee is present in New York State solely to be with their spouse; and (3) the employee is domiciled in another state.

If an employee qualifies for exemption from withholding, they must complete and give Form IT-2104-E to their employer, certifying the employee’s exemption under the provisions of Tax Law § 671(a)(3), or under the SCRA.

Employees must file Form IT-2104-E annually if they wish to continue the exemption. Under certain circumstances, the exemption from withholding is required to be revoked by the employer or employee. These conditions are listed on Form IT-2104-E.

If an employee who claims exemption on Form IT-2104-E usually earns more than $200 per week, you must send to the Tax Department a copy of the Form IT-2104-E certificate along with a copy of any written statement received from the employee that supports the claims made on the certificate. See part T, Submitting certificates to the Tax Department .

START-UP NY program certificate of exemption from withholding If you are a business approved to participate in the START-UP NY program and your business operates in a tax-free New York area all or part of the wages paid to your eligible employees may be exempt from New York State, New York City, and Yonkers income tax withholding. Eligible employees are required to provide you with a completed Form IT-2104-SNY , Certificate of Exemption from Withholding for START-UP NY Program . For more information, see the Tax Department’s website.

Note: A federal Form W-4, that claims exemption from withholding for federal purposes, is not valid for exemption from withholding of New York State, New York City, or Yonkers withholding tax.