N.Y. Comp. Codes R. & Regs. tit. 20 § 2396.7

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

Section 2396.7 - EFT and filing

(a) Choice of payment option. Taxpayers who are mandatory participants can elect one of the four options available to make payments to the program. Taxpayers may elect to make payments by ACH debit, ACH credit, fedwire, or certified check. Where any of the methods require or allow electronic filing, that filing will serve as a substitute for the filing on a paper New York State employer's return of tax withheld (NYS-1).

(b) Taxpayers electing ACH debit

(1) Taxpayers who are participating in the program who elect the ACH debit payment option must, on or before 6:00 p.m. (Eastern time) on the last business day before the applicable due date, report their tax payment for the applicable period by telephone or through the program's website to the electronic payment reporting system. (This is the case because there is a one-day lag between the date on which payment is authorized and the date on which the transfer is executed, i.e., funds are deducted from the taxpayer's bank account and transferred to the department's depository bank.) The electronic payment reporting system can be accessed using the toll-free number or through the program's website. Information on both methods of accessing the system will be provided to taxpayers as part of the notification and enrollment process.

(2)

(i) Prior to making its first payment of tax by ACH debit, a taxpayer must have furnished the department with the banking information necessary to generate ACH debits against its designated account. If a taxpayer's banking information changes after the first payment, the taxpayer must immediately inform the department of the changes to ensure timely payments. The method of changing bank information will be described in the program materials.

(ii) Upon reaching the electronic payment reporting system, the taxpayer will be asked for the unique password and access code provided to the taxpayer as part of the notification and enrollment process. The password, access code, identity of the taxpayer and choice of payment option will be verified, and after approval, the taxpayer will be granted access to the electronic payment reporting system. Upon accessing such system, the taxpayer will be asked to report the following information:

(a) the reporting period;

(b) New York State liability;

(c) City of New York liability;

(d) City of Yonkers liability;

(e) payment amount;

(f) final payment indicator; and

(g) any other information the department deems necessary for filing and payment reporting purposes.

If the above-enumerated information is reported by telephone, the information will be verified over the telephone. If the information is reported using the program's website, it will be verified by the taxpayer online. Once the taxpayer agrees that all information reported is correct, the taxpayer will be given a confirmation number for the transaction. This number will serve as proof that the taxpayer has filed its withholding return for the applicable payroll or payrolls and has complied with the signature requirements of Part 153 of this Title.

(c) Taxpayers electing ACH credit or fedwire.

(1) Participating taxpayers who elect the ACH credit or fedwire payment option must initiate each payment of tax by contacting their own financial institution and requesting such institution to transfer both the appropriate payment of tax and the necessary addenda record information to the department's depository bank via an ACH credit or fedwire transfer, as applicable. An ACH credit taxpayer must initiate each payment transaction with its financial institution on or before the last business day before the applicable due date at such time as designated by its bank to assure that the department's depository bank receives the payment and accompanying addenda record information on or before the applicable due date. A fedwire taxpayer must initiate each payment transaction on or before the applicable due date at such time as designated by its bank to assure that the department's depository bank receives the payment and accompanying addenda record information on or before the applicable due date.

(2) Taxpayers electing to use ACH credit or fedwire transfer must provide the filing information prescribed by the department with their ACH credit or fedwire transfer, as applicable. These taxpayers need not report their withholding tax liability for applicable payroll or payrolls by telephone or through the program's website to the electronic payment reporting system.

(d) Certified check taxpayers.

(1) General rule. Taxpayers, other than educational organizations, that are required to participate in the program and who elect to make payments by certified check, are required to file paper withholding tax returns and make payments of tax by certified check in accordance with the provisions of this subdivision.

(i) Required mailing date. In order to comply with the requirements of the program and to timely file such withholding tax return and pay the tax, a taxpayer that chooses the certified check payment option must either mail the paper return and a certified check for the amount of the tax liability on or before the second business day before the otherwise applicable due date or assure that the department's depository bank receives the certified check and the paper return on or before the otherwise applicable due date.

(ii) Electronic filing not applicable. Because taxpayers choosing the certified check payment option are required to file paper withholding tax returns, the provisions in this section for electronic filing are not applicable to those taxpayers.

(e) Acknowledgement of payment. To provide an acknowledgement of payment, the department will post a record of deposits to the taxpaper's online account which can be accessed through the program's website. Taxpayers may also request that the department mail an advice of deposit or payment. Information will be provided by the program to participating taxpayers at the time of enrollment about how taxpayers may choose to have an advice of deposit or payment mailed to them.

(f) Correcting mistakes. If a taxpayer does not make a correct payment of tax for a particular period or reports the wrong amount, the taxpayer must, on the nearest business day to the date on which the error is discovered, make proper adjustment for such period. Information will be provided by the program about how to make this adjustment. If the taxpayer error involves an underpayment of tax, interest will be charged and penalties may apply.

(g) Changing payment option.

(1) Taxpayers may elect to change their payment option at any time during the program period. The department will make the methods of electing to change payment option available to taxpayers in the printed program description or on the program's website.

(2) Payment contingency options for use in emergency situations. If a taxpayer is unable to utilize its chosen payment option for a particular payroll or payrolls due to circumstances beyond its control, such taxpayer may utilize any of the other payment options, excluding ACH debit, as an alternative payment mechanism for such payroll or payrolls. The procedures specified in subdivision (c) or (d) of this section, as applicable, will govern in such cases.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 2396.7