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New York - Employee Setup |
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New York - Paid Family Leave Act |
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New York - Payroll Business Rules |
If your company is located in the state of New York or if your employees work in New York, then be sure to follow these instructions in order to properly set up the Payroll system.
| 1. | Payroll Integrity Tests - If New York does not show up on the State Payroll Tax Information screen, then select the Payroll > Integrity Tests > All Tests option to add New York (state code 36) to the company costates.adt table. Be sure to click on the Employee SDI Tax Enabled option in order to set the SDI rate to .005 if you must collect this tax from your employees. |
| 2. | Payroll Properties - For check stub purposes, miscellaneous deduction accumulator #6 should be set up with a description of 'City' or 'Local' through the Payroll > Properties > Misc Pays / Deds option. AccuBuild will always use deduction #6 for the New York City and Yonkers taxes. AccuBuild will accrue all of the city tax in the account specified on the State Payroll Tax Information Screen. |
| 3. | Local Deductions - AccuBuild will automatically set up codes for Yonkers / Non Resident (-2001), New York City (-2002) and Yonkers / Resident (-2003). The default account for these deductions will be the same as the account set up for the New York SWH taxes in the Payroll > Properties. The New York local deduction codes are maintained internally by AccuBuild so if the user attempts to change any of these codes, AccuBuild will automatically reset the table values according to the current New York tax laws. These codes are not visible on the Local Deduction Codes Screen or the Ded Rates Tab of the Employee List Screen but they are visible on the Payroll Controls Tab of the Job List Screen in order to designate a job as being subject to the Yonkers tax. All wages paid for work performed in the city of Yonkers, regardless of employee residence, are subject to the Yonkers tax. |
| 4. | Employee Information - On the State Taxes Tab of the Employee List Screen, select the New York state code. Using the information from the Employee's Withholding Allowance Certificate (Form W-4), fill in the employee's exemption information and whether the employee lives or works in New York City or Yonkers. |
| 5. | Enter Employee Beginning Balances - To establish existing year-to-date totals for New York taxes, use timecard transaction code 99 and select the New York tax from the local deduction code list. Note: If your default state is NOT New York, then you will need to skip the local deduction code first, then select the state code for New York. This will allow the system to display the New York tax codes in the local deduction code field. |
| 6. | Payroll Processing - When taxes are calculated for New York, the county tax is calculated based on the state wages after deducting the personal and dependent exemptions. |
New York - Payroll Business Rules
•ENHANCEMENT - New York Payroll Business Rules Update - The payroll business rules for New York employees who have been set up for local city taxes have been enhanced to notify the user when business rules are being violated. These new rules apply for employees that are set up for New York Payroll and have one or more of the following local city taxes enabled:
○New York City Tax
○Yonkers Resident City Tax
○Yonkers NonResident City Tax
These new business rules are enforced for both Automatic Payroll Checks as well as Hand-Written Payroll Checks as outlined below:
•Automatic Payroll Checks - When time cards are entered, the local city tax records are generated automatically just as they always have been. However, the new rules are now enforced:
1.If the user deletes the automatic city tax records, an error will now be displayed during the payroll tax calculations and the process will be canceled until these city tax records are created.
2.When entering the time card records for automatic checks, the system will automatically recreate any deleted city tax records.
3.If a group time card record is deleted that contains associated city tax records, the city tax records will no longer be deleted with the group of records. You will need to delete these records separately.
•Hand-Written Payroll Check - Because handwritten payroll checks require the user to enter all amounts manually, the local tax records are never generated automatically and must be entered on the time card screen using the transaction type of 99. However, new features have been added to remind the user if the local taxes are missing from the entries for any employee that is set up for the New York local city taxes. This warning will then allow the process to be cancelled if needed.
•The New York City Tax and State Withholding Tax Wage Differences preport has been added to the MAR Report library which runs comparisons on New York City Tax Wages and New York State Wages to identify any differences between the two. These wage differences can occur for several reasons: For example, a handwritten payroll check that is processed through the system without the city taxes being included. Another reason could be an employee is updated for New York City taxes after they have had several payroll checks processed without the city tax enabled in their employee file, such as a change in address, or simply being missed in the initial setup. Another reason could be that the tax overrides were made on the employee during the payroll processing.
| Regardless of how these difference occur, this report will identify payroll batches where the city tax wages and state tax wages are not the same. Additional columns are also included in red to show the suggested time card record id that could be used for wage adjustments if these two wage amounts need to match. |
