Form W-2 Wage Considerations for Employees Residing in the State of New York

Generally,  wages in Box 1 of the employee form W-2 should be the same as Box 16. However, there is a special consideration for employees residing in the state of New York and worked in a different state.

 

The information that the employee's W-2 provided in the system are updated and would reflect correct wages for NY once it is viewed.

 

To view the Actual employee W-2 form information:

 

1. Navigate to Reports > Payroll > Form W-2

2. Select the year

3. Click on preview for the employee W-2

 

Actual information in the system is:

Box 1: $100,000
Box 16 NY: $70,000

Box 16 OR: $30,000

 

But the Employee W-2 copy from Ceridian shows.

Box 1: $100,000

Box 16 NY: $100,000
Box 16 OR: $30,000

 

 

There is a mismatch in the reporting of NY wages in the employee W-2 and it is further explained below:

 

 

For New York State resident employees

 

All wages paid to a resident of New York State are subject to withholding, even when earned outside New York State. See part P, Determining withholding tax, on page 30, for an explanation of how to determine withholding. If wages paid to New York State residents are also subject to withholding of income taxes of other states, their political subdivisions, or the District of Columbia, see part P, Determining withholding tax, on page 30, for instructions on how to avoid double withholding.

 

Note:

Employers must continue to withhold New York State income tax from resident employees regardless of work location or length of Assignment outside of New York State

 

The Employee can inform the state on their return that they were only in the state for part of the year.

 

 

This Information can be found in the Website (page 26 section F ):

http://www.tax.ny.gov/pdf/publications/withholding/nys50.pdf

 

 

 

 

For Part-year New York State residents

The amount of wages that must be reported in the box 16 on federal Form W-2 is the same amount as the federal wages required to be reported in box 1. That amount is federal wages before any allocation that the employee may have claimed on Form IT-2104.1, New York State, City of New York, City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax.

Employees make adjustments on their personal tax returns for work done in other state when he or she filed for New York State part-year resident income tax return.

This information can be found in the website:

http://www.tax.ny.gov/pdf/memos/income/m02_3i.pdf

 

 

Disclaimer: This article is written with the undertaking that tax rules and laws are constantly changing and is intended for informational purposes only. We have no control over the websites provided above.
We are not providing tax consulting or legal advice.
For the most current information or if you have any questions concerning your situation or information provided, , please contact your accountant/tax consultant, call the tax agency or visit the government official website