Update Applicable to:	Due date
All covered employers	March 2025

What happened?

On July 31, 2024, the Department of Taxation and Finance (DOTAF) announced significant changes coming to withholding tax and wage reporting.

What are the details?

Quick Bites:

• Can electronically file all withholding tax returns, including amended returns.

• To amend your Form NYS-45 or Form NYS-1, Return of Tax Withheld, you must submit a complete, new filing (including all return parts and all employee records, not just the changes)

• On Form NYS-45, Part A, Part B, and Part C must be filed together as a single return. if you are required to report both Wages and Other wages, you must submit this information on one return.

• On Form NYS-45 Part C, employers must separately report New York State, New York City, and Yonkers tax withheld for each employee.

• Employers can upload without a limit the files for Part C.

Bites for Employers: A comparison of the key changes between the previous and updated versions of New York State’s withholding tax and wage reporting requirements:

Previous Version

1. Separate Filings: Employers could file Unemployment Insurance (UI), Withholding Tax (WT), and Quarterly Employee/Payee Wage Reporting separately.
2. Form NYS-45: Used for combined reporting but with less detailed requirements.
3. Limited Online Features: The online filing system had limited capabilities for error reduction and automatic calculations.
4. Amendments: Employers could amend specific parts of their filings without resubmitting the entire return.

Updated Version (Effective March 2025)

1. Unified Filing: Employers must file Form NYS-45, which now combines UI, WT, and Quarterly Employee/Payee Wage Reporting into a single return.
2. Detailed Reporting: Employers must separately report New York State, New York City, and Yonkers tax withheld for each employee on Form NYS-45 Part C.
3. Enhanced Online Filing: The NYS-45 Web File application will allow for unlimited employee reporting and include features to reduce errors, such as automatic calculations.
4. Amendments: To amend any returns, a complete new filing must be submitted, including all parts and employee records.

Business Considerations

• Given the advantages of online filing compared to physical one, employers should use online resources to avoid resubmissions.
• Employers should check the DOTAF website for any updates and additional guidance.
• Employers should communicate with payroll and HR Staff on the updated forms and procedures.
• Employers should audit their employee records and verify that they are up to date. This will help them avoid errors and resubmissions when complying with this requirement.

Source References

• New York Tax Withholding Announcement

Resources

• NY Withholding Tax Resources
• NYS-45-X Form
• DOTAF Form NYS-45

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.