- 1). Subtract pretax or nontaxable deductions from your gross pay to determine taxable wages in New York state. Such deductions include health insurance plans that meet the requirements of section 125 of the Internal Revenue Code and public transportation costs through the New York State Transportation Benefit Program.
- 2). Consult line 1 of your state IT-2104 form to find the number of allowances you are entitled to claim on your New York State income tax. To figure out the tax withholding, consult the tax table in Publication NYS-50-T-NYS that matches your number of allowances or exemptions, filing status (as shown on the IT-2104), taxable wages and pay period. You may obtain the tax table from the New York State Department of Taxation and Finance.
For example, your weekly taxable wages are $420 and you claim single filing status with one allowance. According to page 4 of Publication NYS-50-T-NYS, your weekly personal income tax withholding is $12 at the time of publication. - 3). Check line 1 of the IT-2104 form for allowances for Yonkers city income tax purposes and line 2 of the form for allowances for New York City income tax purposes. Use Publication NYS-50-T-Y to determine Yonkers income tax withholding and Publication NYS-50-T-NYC to figure out New York City income tax withholding. You are required to pay city income tax if you live in either Yonkers or New York City, even if you work outside of those jurisdictions. You may obtain the tax table for both Yonkers and New York City income tax from the New York State Department of Taxation and Finance.
- 4). Consult line 5 of your W-4 form for allowances for federal income tax purposes. To figure the withholding, apply the tax table in IRS Circular E that corresponds to your number of allowances, filing status, taxable wages and pay period.
- 5). Calculate Social Security tax at 4.2 percent of taxable wages up to $106,800 for the year, and Medicare tax at 1.45 of all taxable compensation at the time of publication (see page 19 of the 2011 Circular E).
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