Employer requirements concerning the reporting of New York State, New York City, and Yonkers wages on federal Form W-2

The Tax Department requires all employers to complete the State wages, tips, etc. box of federal Form W-2 for any employee who has federal wages subject to New York State income tax withholding.

The following guidelines must be used for determining the amount of wages to be reported on federal Form W-2 for New York State purposes:

Full-year New York State resident employees – The amount of wages that must be reported in the State wages, tips, etc. box on federal Form W-2 is the same as the amount of federal wages required to be reported in box 1, Wages, tips, other compensation .

Full-year New York State nonresident employees who perform all of their services in New York State – The amount of wages that must be reported in the State wages, tips, etc. box on federal Form W-2 is the same as the amount of federal wages required to be reported in box 1, Wages, tips, other compensation .

Full-year New York State nonresident employees who do not perform any services in New York State – If a nonresident employee does not perform any services in New York State for the entire tax year, the employer is not required to report any New York State wages in the State wages, tips, etc . box on federal Form W-2. However, if any of the compensation that is considered wages for federal income tax purposes is attributable to services performed in New York State in a prior tax year(s) , then the amount of wages that must be reported in the State wages, tips, etc . box on federal Form W-2 is the same amount of federal wages required to be reported in box 1, Wages, tips, other compensation . That amount is federal wages before any allocation that the employee may have claimed on Form IT-2104.1. The employee will allocate the part of the employee’s federal wages that are attributable to services performed in New York State in the prior year(s) when the employee files their New York State nonresident income tax return.

Full-year New York State nonresident employees who perform only a portion of their services in New York State – If at any time during the tax year a nonresident employee performs services in New York State (for example, two days a week, every other week, every other month, one month a year, and so on), the amount of wages that must be reported in the State wages, tips, etc . box on federal Form W-2 is the same amount of federal wages required to be reported in box 1, Wages, tips, other compensation . That amount is federal wages before any allocation that the employee may have claimed on Form IT-2104.1. The employee will allocate the part of the employee’s federal wages that are attributable to services performed in New York State when the employee files their New York State nonresident income tax return.

Part-year New York State residents – For a part-year New York State resident, the amount of wages that must be reported in the State wages, tips, etc. box on federal form W-2 is the same amount as the federal wages required to be reported in box 1, Wages, tips, other compensation . That amount is federal wages before any allocation that the employee may have claimed on Form IT-2104.1. The employee will allocate the part of the employee’s federal wages that is attributable to services performed in New York State during the employee’s nonresident period when the employee files their New York State part-year resident income tax return.

The following guidelines must be used for determining the amount of wages to be reported on federal Form W-2 for New York City purposes:

Full-year New York City residents – For a full-year New York City resident, the amount of wages that must be reported in the Local wages, tips, etc . box on federal Form W-2 is the same amount as the federal wages required to be reported in box 1, Wages, tips, other compensation .

Part-year New York City resident – For a part-year New York City resident, the employer must report in the Local wages, tips, etc . box on federal Form W-2 only the amount of federal wages for the period the employee was a New York City resident.

Full-year New York City nonresident – In the case of a full-year New York City nonresident, the employer is not required to report any New York City wages in the Local wages, tips, etc . box on federal Form W-2, unless the compensation is attributable to services performed in New York State in a prior tax year and the employee was a New York City resident for all or part of that tax year.

The following guidelines must be used for determining the amount of wages to be reported on federal Form W-2 for Yonkers purposes:

Yonkers – The guidelines set forth for New York State purposes (above) are also applicable to the amount of wages required to be reported in the Local wages, tips, etc . box on federal Form W-2 for any employee subject to Yonkers income tax withholding. Substitute Yonkers and Local wages, tips, box for New York State and State wages tips, etc . box to determine the amount of Yonkers wages to be reported in the Local wages, tips, etc . box on federal Form W-2.

If the filing of Form W-2 is required for an employee, whether a resident, nonresident or part-year resident of New York State, New York City, or Yonkers, the employee’s total wages, tips, and other compensation for services both in and out of New York State are to be reported as described above.

Employers do not submit a copy of Form W-2 to New York State. Instead, employers must report quarterly wage and withholding information on each quarterly combined withholding, wage reporting, and UI return filed. Employers are required to submit wage and withholding information electronically. See part AA, Electronic (e-file) mandate of quarterly combined withholding, wage, and UI returns , for more information on electronic filing requirements.

Employers do not submit a copy of federal Form(s) 1099 to New York State. New York State no longer requires the annual filing of Form 1099 information returns. However, New York State does require the reporting of Form 1099-R payments if there was New York State, New York City, or Yonkers income tax withheld (see Annuities subject to income tax withholding ).

Supplemental unemployment compensation benefits subject to income tax withholding – Furnish two copies of Form W-2 to each payee as if wages had been paid.

Annuities subject to income tax withholding – If you are a payer of annuities and you withheld New York State income tax, New York City resident tax, or Yonkers resident tax surcharge from annuity payments, you must give each annuitant from whom you withheld New York State or City tax two copies of federal Form 1099-R (instead of a Form W-2) showing the gross amount of annuity payments and showing separately the amounts of New York State income tax and City resident tax withheld during the year.

You do not submit a copy of Form 1099-R to New York State. Instead, payers of annuities must report annuity and withholding information in boxes g, h, i, and j of Part C on the Form NYS-45 of each employer quarterly withholding, wage reporting, and UI return filed. See Form NYS-45-I , Instructions for Form NYS-45 , for more information.

Statements for employees and annuitants – Wage and tax statements on Form W-2 and Form 1099-R for a calendar year and any corrected statements made for that year must be furnished to employees not later than January 31 following the close of the calendar year. However, if an employee leaves your service before the close of the calendar year and is not expected to return to work within the calendar year, the statement must be furnished to the employee not later than 30 days after the last payment of wages is made to the employee.