New York City employers can use our NY payroll software to calculate NY City income tax withholding. Find more information about our complete payroll program at www.realtaxtools.com .
New York City personal income tax rate has changed effective September 1, 2010. The rate change will affect wages of $500,000.00 or more. New York State income tax rate will not be affected by the change. Effective September 1, 2010 the supplemental withholding rate will be 4.75% (.0475).
Steps for computing the amount of tax to be withheld using our payroll software:
(1) Start Payroll Mate payroll software.
(2) Click on the “Employees” screen.
(3) Select the employee you want to configure to be liable to NCY Payroll Tax.
(4) From the top toolbar, select “Edit”, the “Modify Employee” wizard comes up.Follow the wizard until you reach the “Tax Setup” screen. Under “State Tax Setup“, make sure to set the state to “NY”.
(5) Click next and follow the wizard until you reach the “Taxes” screen. Check the box “New York City Tax”, this will tell Payroll Mate to auto calculate Payroll Tax NYC. Follow the wizard until you reach the end and click “Finish”.
(6) With same employee selected click on “Pay”, this will bring up the new payroll check dialog. Enter amounts for incomes and press “Recalculate”. Our payroll tax software will auto calculate the New York City withholding among other taxes and deductions.
NYC Payroll Tax examples:
(1) NYC Payroll Tax Example One: Aiden is on a Weekly payroll, $400 gross wages, single with 3 exemptions. The amount of NYC payroll tax is $5.74.
(2) NYC Payroll Tax Example Two: Noah is on a Semimonthly payroll, $5,000 gross wages, single with 1 exemption. The amount of NYC payroll tax to be withheld is $177.54.
(3) NYC Payroll Tax Example Three: Emma is on a Monthly payroll, $50,000 gross wages, single with 3 exemptions. Withhold $2,005.90.
(4) NYC Payroll Tax Example Four: Jack is paid daily, $750 gross wages, single and has two exemptions. The amount of New York City tax to be withheld from this employee’s check is $27.76.
(5) NYC Payroll Tax Example Five: Madison gets paid weekly, with $400 gross wages, married with 4 exemptions. The amount of tax to be withheld for NYC payroll tax is $4.85
(6) NYC Payroll Tax Example Six: Ethan is on a semimonthly payroll, $5,000 gross wages, married and has 3 exemptions. Withhold $173.38.
(7) NYC Payroll Tax Example Seven: Isabella gets paid Monthly, $50,000 in gross wages, married, 3 exemptions. The NYC payroll tax to be withheld is $2,003.93.
(8) NYC Payroll Tax Example Eight: Sophia is on a daily payroll, with $750 gross wages, married, 2 exemptions. Withhold this amount: $27.69.
We offer a free trial of our NY payroll solution on our website.
