Withholding on Wages Paid to Certain Nonresidents Who Work 14 Days or Fewer in New York State
This memorandum explains the Tax Department’s existing policy concerning employer withholding on the wages paid to certain nonresident employees whose primary work location is outside of New York State and who are expected to work 14 days or fewer in New York State during the calendar year. Law and background Section 601(e) of the Tax Law imposes a personal income tax on the New York source income of a nonresident individual. The New York source income of a nonresident individual includes wages and other compensation for services performed in New York State. Section 671 of the Tax Law provides that every employer maintaining an office or transacting business in New York State and paying any wages subject to New York State personal income tax must deduct and withhold tax from those wages during each calendar year. The amount withheld must be substantially equivalent to the tax reasonably estimated to be due from the inclusion of the wages in the employees’ New York adjusted gross ...