The New York Department of Taxation and Finance released new withholding tables for NY State and Yonkers, effective January first 2012. The amendments change the payroll tax withholding tables in accordance with the NY income tax rate changes for tax years beginning after 2011 necessitated by Chapter 57 of the Laws of 2009, reflecting the return to the highest personal income tax return rate of 6.85 percent.
The amendments also reflect the implementation of the City of Yonkers 15 percent income tax surcharge on residents over a twelve-month period, rather than the shorter implementation period required for tax year 2011.
The New York state supplemental wage rate would be 7.65 percent, effective January 1, 2012, and the Yonkers supplemental wage rate would be 1.70975 percent, effective January 1, 2012.
Example based on the new 2012 withholding tables:
Weekly payroll, $400 gross wages, single, 3 exemptions
1. Amount from Table A is $191.90 for single, weekly payroll, 3 exemptions. $400 wages – $191.90 = $208.10 net wages.
2. Use Table II – A for single, weekly payroll. Look up $208.10 and use line 2 on which $208.10 is greater than Column 1 ($154) but less than Column 2 ($212).
3. $208.10 – $154 (from Column 3, line 2) = $54.10.
4. $54.10 x .0450 (from Column 4, line 2) = $2.43.
5. $2.43 + $6.15 (from Column 5, line 2) = $8.58. Withhold this amount.
