N.Y. Comp. Codes R. & Regs. tit. 20 § 296.3

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

Section 296.3 - Certificate of nonresidence and apportionment of wages for services within and without the City of New York

(a) General. An employer who is required to withhold City of New York earnings tax on nonresidents (see section 296.1 of this Part) must deduct and withhold such City of New York earnings tax on nonresidents on all wages paid to an employee who is a nonresident of the City of New York for all services performed in the City of New York. Wages paid to a nonresident employee for personal services rendered entirely without the City of New York are not subject to withholding of City of New York earnings tax on nonresidents.

(b) Certificate of nonresidence. Except as otherwise provided in subdivision (d) of this section, employees who are nonresidents of the City of New York and perform any services within the City of New York must file with such employee's employer a "City of New York Certificate of Nonresidence," form IT-2104.2, and such employer must then deduct and withhold City of New York earnings tax based on the information furnished in such certificate of nonresidence.

(c) Content of certificate. An employee claiming City of New York nonresident status shall certify on a City of New York Certificate of Nonresidence that such employee is not a resident of the City of New York, and if an employee claiming City of New York nonresident status earns wages for services performed partly within and partly without the City of New York, such employee must indicate on such certificate of nonresidence a reasonable estimate of the portion of total wages to be earned during the taxable year which represents compensation for services performed within the City of New York during such taxable year. The portion of wages allocated to services performed within the City of New York must be determined in accordance with the provisions of section 171.6 of this Title.

(d) Certificate of nonresidence not required. An employee (1) who is a nonresident of the City of New York, and (2) who performs services partly within and partly without the City of New York (other than the services described in section 171.6[b][2][i] of this Title), and (3) whose total wages for the taxable year from services performed within the City of New York are not reasonably expected to exceed $3,000 (or $3,000 prorated for taxable periods of less than one year), and (4) whose address, as provided by such employee, on form IT-2104 (or on Federal form W-4 if such form IT-2104 has not been provided), indicates that such employee is presumably a nonresident of the City of New York, shall not be required to file a City of New York Certificate of Nonresidence with such employee's employer, and such employer need not deduct and withhold any amount of City of New York earnings tax on nonresidents from such employee's wages.

(e) The mere filing of a City of New York Certificate of Nonresidence does not, however, relieve the employer from the duty of withholding the proper amount of City of New York earnings tax on nonresidents from wages paid to a nonresident employee for services performed in the City of New York. The City of New York Certificate of Nonresidence filed with an employer must be retained by such employer and must be available for inspection by representatives of the Commissioner.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 296.3