N.Y. Comp. Codes R. & Regs. tit. 20 § 171.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 171.3 - Definition of wages

(a) General.

(1) Payments which are considered wages for Federal income tax withholding purposes are also wages for purposes of withholding New York State personal income tax. For withholding of New York State personal income tax on supplemental unemployment compensation benefits, see section 171.9 of this Part.

(2) However, the term wages, for purposes of withholding New York State personal income tax, does not include:

(i) compensation paid to an officer, master or any other seaman who is a member of the crew on a vessel engaged in foreign, coastwise, intercoastal, interstate or noncontiguous trade ( 46 U.S.C.A. § 601) (see Public Law 98-89 and section 11108 of title 46 of the United States Code);

(ii) compensation paid by an interstate rail carrier, an interstate motor carrier or an interstate motor private carrier to an employee who is not a resident of New York State for income tax purposes under section 605 (b)(1) of the Tax Law, for performing such employee's regularly assigned duties in two or more states even though such employee performed services in New York State (see Public Law 101-322 and section 11504 of title 49 of the United States Code); or

(iii) compensation paid by an interstate air carrier to an employee who is not a resident of New York State for income tax purposes under section 605 (b)(1) of the Tax Law, for performing such employee's regularly assigned duties on an aircraft in two or more states unless such employee earns more than 50 percent of such compensation in New York State. For purposes of the foregoing, an employee shall be deemed to have earned more than 50 percent of such employee's compensation in New York State when such employee's scheduled flight time in New York State is more than 50 percent of such employee's total scheduled flight time in the calendar year while so employed (see Public Law 96-193 and section 1512 of title 49 of the United States Code).

(b) A determination by the Internal Revenue Service which relieves an employer from withholding responsibility with respect to payments to an employee also applies for purposes of withholding New York State personal income tax, except as otherwise provided in this subdivision. Where an employer is required to reinstate withholding of Federal income tax with respect to an employee, such obligation is equally applicable for purposes of withholding New York State personal income tax. An employer who is relieved from responsibility of withholding Federal income tax upon a payment of wages to an employee on the basis of a withholding exemption certificate furnished by the employee, under section 3402(n) of the Internal Revenue Code, is not relieved from withholding on such wages for New York State personal income tax purposes. However, see section 171.8 of this Part for the circumstances under which an employee may qualify for exemption from withholding of New York State personal income tax because of low income or because an employee incurs no New York State personal income tax liability.

(c)

(1) As to wages paid to nonresidents of New York State, see also section 171.6 of this Part.

(2) For wages paid to a resident of New York City, see Part 291 of this Chapter.

(3) For wages paid to a nonresident of New York City, see Part 296 of this Chapter.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 171.3