New York, Yonkers Withholding Tables Updated Effective July 1

Effective for wages paid on or after July 1, 2021, the New York Department of Taxation and Finance has released updated withholding tables for New York State and the city of Yonkers:

• Pub. NYS-50-T-NYS, New York State Withholding Tax Tables and Methods, rev. July 1, 2021
• Pub. NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods, rev. July 1, 2021

The 2021-2022 New York State budget was signed into law on April 19, 2021. Changes to New York’s personal income tax have caused withholding changes for taxpayers with taxable income:

• More than $2,155,350, and who are married filing jointly or a qualified widow(er)
• More than $1,077,550, and who are single or married filing separately
• More than $1,616,450, and who are head of household

Employers with employees subject to New York and/or Yonkers resident personal income tax withholding who are earning more than the amounts listed above should be aware that revised withholding computation rules may affect payrolls made on or after July 1, 2021. This means that the tables should be used from July 1, 2021, going forward.

Supplemental Wage Tax Rate Increases

Effective July 1, 2021, the New York supplemental wage tax rate increased to 13.78% (previously 9.62%) and the Yonkers resident supplemental wage tax rate increased to 2.30815% (previously 1.61135%). The Yonkers nonresident supplemental wage tax rate remains 0.5%.

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.

Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.