New York City and Yonkers City Tax
Caution! After setting up the local tax district and the associated payroll calculation, enter the local district number in the employee files for New York City or Yonkers residents. Sage 100 Contractor will apply the non-resident rate to all other employees working in Yonkers.
Note: For records on 5-2-2 Payroll Records that have the Payroll Type of 2—Bonus, Sage 100 Contractor calculates state income tax using the published flat-rate.
While most cities use a flat tax rate, New York City and Yonkers use tax tables to determine municipal taxes. Companies that operate in New York City or Yonkers can set up local payroll tax districts to compute these taxes. (See links)
To calculate the resident and non-resident taxes using the appropriate New York City or Yonkers tax table, do not enter any tax rates in the Rate columns. New York City only taxes residents, Yonkers taxes both residents and non-residents.
You do need to enter the tax state and a description. In the Description column, indicate which tax table you want to use. Separate from any other descriptive text, enter NYC for the New York City tax or YNK for the Yonkers tax. Be sure to capitalize the description; otherwise, Sage 100 Contractor will not compute any taxes.
After setting up the local payroll tax, set up a payroll calculation with tax type 13-Local Income Tax and calculation method 17-Tables. (See links)
To set up payroll calculations on an employee for New York City/Yonkers City Tax:
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1
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Open 5-3-6 Local Payroll Tax. |
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2
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In the District# column, in the correct cell, enter the district number. |
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In the District Name column, in the corresponding cell, enter a brief statement about the district, and then type a space. |
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If the district is for Yonkers, type YNK. |
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If the district is for New York City, type NYC. |
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In the Tax State box, type NY. |
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On the File menu, click Save. |
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Open 5-3-1 Payroll Calculations. |
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Set up the associated payroll calculation. (See links) |
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Be sure to include the following in the payroll calculation: |
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a
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In the Tax Type list, click 13-Local Income Tax. |
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b
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In the Calculation Method list, click 17-Tables. |
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c
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In the Tax Locale list, click the local payroll tax district for New York City or Yonkers that you just set up. |
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On the menu bar, click File, then click Save. |
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Links to more information . . .
About local payroll taxes
About payroll calculations
Setting up payroll calculations for local payroll tax districts
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More resources
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