Notice of New York City Withholding Tax Changes & New Payroll Deduction
We would like to notify our New York payroll clients of some minor but important payroll changes they might notice on their employees’ pay stubs.
Starting July 1, we automatically began deducting 0.126% of each employee’s weekly wage with a maximum deduction of $1.65 per week as the employee contribution for the new New York State Paid Family Leave Program. Coverage will begin starting January 1, 2018, and the New York State Department of Financial Services (DFS) has permitted employers to begin deducting July 1.
With the new family leave program, employees will be able to receive partially paid leave when certain life events occur (you can find out more about this on New York State’s official webpage).
The plan will be fully funded by employee contributions in the form of a minor deduction each pay period.
As of now, no action is needed on your part, as Fingercheck has automatically begun deducting the minor contribution starting July 1.
Additionally, New York City revised its income tax tables effective July 1, 2017. If an employee is subject to New York City’s personal income tax, they may see a very small increase in their New York City tax withholding.
This increase is due to an amendment in the tax code and no action is required on your part to adjust the withholding. For more information, see this notice issued by the Department of Taxation and Finance.
As your payroll provider, we will be providing you with important information and updates on all matters related to your company payroll.