B. Employer for withholding purposes

An employer is any person or organization qualifying as an employer on the basis of the instructions contained in federal Publication 15, Circular E, Employer’s Tax Guide , and maintaining an office or transacting business within New York State, whether or not a paying agency is maintained within the state.

Out-of-state employers who are not incorporated or licensed under New York State law and do not maintain an office or transact business in New York State are not required to withhold New York State, New York City, or Yonkers income taxes on the wages of employees who reside in New York State. However, if an out-of-state employer agrees to withhold New York State, New York City, or Yonkers income taxes for the convenience of the employee(s), the employer is then subject to New York State withholding requirements as outlined in this publication. If the employer does not withhold New York State, New York City, or Yonkers income taxes, the employee may be required to make estimated payments of such income taxes using Form IT-2105 , Estimated Tax Payment Voucher for Individuals .