Full quarterly payroll compliance workflow for New York employers, covering NY State PIT withholding (Form NYS-45), unemployment insurance, Disability Benefits Law, Paid Family Leave, NYC and Yonkers withholding, and Metropolitan Commuter Transportation Mobility Tax (MCTMT). Produces NYS-45 quarterly return, W-2 package, and annual reconciliation.
Register with NY DTF for a withholding account and with NY DOL for unemployment insurance. Confirm whether the business is in the MCTD (12-county zone), determine NYC and/or Yonkers nexus, and obtain DBL/PFL insurance coverage from a licensed carrier. A new employer gets a flat UI rate of approximately 4.025% until experience rating applies.
Collect Form IT-2104 (NY withholding certificate) from every new hire alongside the federal W-4. Determine each employee's residency status — NY State resident, NYC resident (domicile or 183-day statutory resident), Yonkers resident, or non-resident — because each classification triggers a different withholding stack. Apply the convenience-of-employer rule for any employee working remotely: remote days worked for a NY employer are NY-source unless the employer requires out-of-state work.
Each pay period, compute NY State PIT withholding using Publication NYS-50-T-NYS (exact-calculation method preferred over wage-bracket tables), NYC withholding at 3.078%–3.876% for NYC residents, and Yonkers resident surcharge (16.75% of NY State tax, effectively ~1.6135% of wages) or Yonkers non-resident earnings tax (0.50% flat) as applicable. Deduct PFL at 0.388% of gross wages (capped at $354.53 annually) and up to $0.60/week for DBL. Apply the 11.70% NY State supplemental flat rate (4.25% NYC) for separately identified bonus/commission payments. Deposit withholding via Form NYS-1 within 3 business days of payroll if annual liability is $15,000+ (or 5 business days if $700–$14,999); employers with $100,000+ must use PrompTax electronic deposit.
Prepare the consolidated Form NYS-45 (Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return) due April 30, July 31, October 31, and January 31. Part A reports UI wages (subject to the $13,200 wage base) and UI contributions at the employer's assigned rate (new employer: ~4.025%); Part B reconciles NY State, NYC, and Yonkers withholding against deposits made; Part C reports individual employee wages and withholding YTD (on NYS-45-ATT if more than 5 employees). If the employer is in the MCTD, complete Part D to report MCTMT: Zone 1 (NYC boroughs) at 0.60% if quarterly payroll exceeds $437,500, and Zone 2 (suburban) at 0.34% if quarterly payroll exceeds $312,500. E-file required — paper filing is no longer accepted.
By January 31 of the following year, issue Form W-2 to each employee and file with the SSA (federal) and reconcile to the Q4 NYS-45 (which also functions as the annual NY State reconciliation). Box 14 must show 'NYPFL' for PFL contributions deducted during the year and 'NYDBL' for DBL contributions. Box 15 must show the NY State withholding account ID. NYC and Yonkers withholding are separately reported in Box 19/20. The Q4 NYS-45 Part C YTD figures must match each employee's W-2 Box 16 (NY State wages) and Box 17 (NY State withholding). Transmit state copies to NY DTF via the SSA Combined Federal/State Filing program or direct upload.
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