New York Payroll Laws and Taxes

Payroll taxes are important for small businesses in New York State. Let's take a look at the most common taxes.


Income tax

New York's progressive income tax ranges from 4.82 percent to 8.82 percent, depending on the employee's earnings. Any additional bonuses or commissions are subject to a 9.62 percent withholding tax. New York employers are required to withhold income tax from the wages of their employees and to remit it to the Department of Taxation and Finance.

Employers that pay taxable wages for residents regardless of their location, as well as employers who pay taxable wages for non-residents performing services within the state must withhold all payments of taxable wage paid to residents.

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Use tax

Use taxes are levied on services and goods purchased outside New York State that are supplied to businesses in the state. These taxes are not included in the calculation of payroll taxes.

All taxes mentioned above are in addition federal taxes and must be deducted from W2 employees' pay.


Yonkers Surcharge

Yonkers residents, workers and visitors pay a levy that is less than 1% depending on a variety of variables.




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