New York State Income Tax Withholding Deduction

Deduction Setup:

On your deduction for New Your Income Tax please set the W2 Display Option for your deduction as follows (NY SIT) and the Type should be set to System (NY Income Tax).  You can either use a percentage of gross (and make sure you select the proper gross) or a simple amount.  We recommend using the percentage of gross so the applied wages automatically report on the W2. 

W2 Setup:

On the Setup >>> District  >>> Tax ID tab, enter the New Your Tax ID number for your District

Entering the Applied Wages for New York income taxes:

1. If your NY State tax deduction is utilizing “Gross utilized for the calculation” then your NY applied wages will appear on your employees W2

2. If the applied wages are not appearing on the W2 (because you have not selected a “gross” for the calculation, you will have to manually enter the applied wages for each individual)

     a. Go to the individual who has the NY withholdings

     b. Under the Payroll tab, click on the “Audit” tab

     c. Go to payroll #24, or the last payroll with the deduction

     d. Click on the “Fix” button in the lower right hand corner

     e. Enter the YTD NY applied wages in the 2 boxes noted below

     f. Click “Save Deductions”

     g. Repeat this for all employees with the deduction