Section 671. Requirement of withholding tax from wages

(a) General. * (1)
  Every employer maintaining an office or transacting business within this
  state and making payment of any wages taxable under this  article  to  a
  resident  or  nonresident individual shall deduct and withhold from such
  wages for each payroll period a  tax  computed  in  such  manner  as  to
  result,  so far as practicable, in withholding from the employee's wages
  during each calendar year an amount substantially equivalent to the  tax
  reasonably  estimated  to  be  due under this article resulting from the
  inclusion in the employee's New York adjusted gross income of his  wages
  received during such calendar year. The method of determining the amount
  to be withheld shall be prescribed by regulations of the tax commission,
  with  due  regard to the New York withholding exemptions of the employee
  and the sum of any credits allowable against his tax.
    * NB Applies to taxable years prior to 1988
    ** (1) Every employer maintaining an office  or  transacting  business
  within  this  state  and  making payment of any wages taxable under this
  article shall deduct and withhold  from  such  wages  for  each  payroll
  period  a  tax  computed  in  such  manner  as  to  result,  so  far  as
  practicable, in  withholding  from  the  employee's  wages  during  each
  calendar  year  an amount substantially equivalent to the tax reasonably
  estimated to be due under this article resulting from the  inclusion  in
  the  employee's New York adjusted gross income or New York source income
  of  his  wages  received  during  such  calendar  year.  The  method  of
  determining the amount to be withheld shall be prescribed by regulations
  of  the  commissioner,  with  due  regard  to  the  New York withholding
  exemptions of the employee and the sum of any credits allowable  against
  his tax.
    ** NB Effective January 1, 1988; applicable to taxable years beginning
  after 1987.
    (2) The tax commission may provide, by regulations, for withholding--
    (A)  from  remuneration  for services performed by an employee for his
  employer which does not constitute wages, and
    (B) from any other type of payment, with  respect  to  which  the  tax
  commission  finds  that  withholding  would  be  appropriate  under  the
  provisions of this article,
  if the employer and the employee, or in the case of any  other  type  of
  payment the person making and the person receiving the payment, agree to
  such  withholding.  Such agreement shall be made in such form and manner
  as the tax commission may by regulations provide. For purposes  of  this
  article,  remuneration  or  other  payments  with  respect to which such
  agreement is made shall be treated as if they  were  wages  paid  by  an
  employer  to an employee to the extent that such remuneration is paid or
  other payments are made during the period for which the agreement is  in
  effect.
    (3)  The  tax  commission shall provide by regulation for an exemption
  from withholding for (i) employees under eighteen  years  of  age,  (ii)
  employees  under twenty-five years of age who are full-time students and
  (iii) employees over sixty-five years of age,  provided  such  employees
  had  no  income  tax  liability  in  the  prior  year and can reasonably
  anticipate none in the current year.
    * (b) Extension of withholding to unemployment  compensation  benefits
  and annuity payments.--
    (1) For purposes of this article--
    (A)  any  supplemental  unemployment  compensation  benefit paid to an
  individual to the extent  includible  in  such  individuals's  New  York
  adjusted gross income, and
    (B)  any  payment  of  an  annuity  to  an  individual  to  the extent
  includible in such individual's New York adjusted gross  income,  if  at

  the  time  the payment is made a request that such annuity be subject to
  withholding under this article is in effect,
    shall be treated as if it were a payment of wages by an employer to an
  employee for a payroll period.
    (2)  Request for withholding.--A request that an annuity be subject to
  withholding under this article shall be made by the payee in writing  to
  the  person  making  the  annuity  payments,  as  prescribed  by the tax
  commission. Such a request may, notwithstanding any provision of law  to
  the  contrary,  be  terminated  by  furnishing  to the person making the
  payments  a  written  statement  of  termination.  Such  a  request  for
  withholding  or  statement  of termination shall take effect in the same
  manner such a request or statement would take effect under the  laws  of
  the  United  States  except  to  the  extent the tax commission shall by
  regulation, provide otherwise.
    * NB Effective prior to September 1, 1987
    * (b) Extension  of  withholding  to  certain  periodic  payments  and
  gambling winnings.
    (1)  For purposes of this article, any payment subject to withholding,
  within the meaning of paragraph two of this subsection, shall be treated
  as if it were wages paid by an employer to an employee.
    (2) Payments subject to withholding. For purposes of paragraph one  of
  this subsection, a payment subject to withholding means:
    (A)  Any  supplemental  unemployment  compensation  benefit paid to an
  individual to the  extent  includible  in  such  individual's  New  York
  adjusted gross income or New York source income.
    **  (B) Any member or employee contributions to a retirement system or
  pension fund picked up by the employer  pursuant  to  subdivision  f  of
  section  five  hundred seventeen or subdivision d of section six hundred
  thirteen of the retirement and social security law or section  13-225.1,
  13-327.1,  13-125.1,  13-125.2 or 13-521.1 of the administrative code of
  the city of New York or  subdivision  nineteen  of  section  twenty-five
  hundred  seventy-five  of  the  education law and any member or employee
  contributions to a retirement system or pension fund picked up  or  paid
  by  the  employer  for  members  of  the  Manhattan  and  Bronx  surface
  transportation  authority  pension  plan   and   treated   as   employer
  contributions  in  determining income tax treatment under section 414(h)
  of the Internal Revenue Code.
    ** NB Expires per ch. 681/92 § 16
    (C) Any  payment  of  an  annuity  to  an  individual  to  the  extent
  includible  in  such  individual's New York adjusted gross income or New
  York source income, if at the time the payment is made  a  request  that
  such annuity be subject to withholding under this article is in effect.
    (D) Any payment of winnings from a wager placed in a lottery conducted
  by  the  division of the lottery, if the proceeds from such wager exceed
  five thousand dollars.
    (F) Any amount deducted or deferred from an employee's salary under  a
  flexible  benefits  program established pursuant to section twenty-three
  of the general municipal law or section one thousand two  hundred  ten-a
  of the public authorities law.
    (G)  Any  amount  by which an employee's salary is reduced pursuant to
  the provisions of subdivision b of section 12-126.1 and subdivision b of
  section 12-126.2 of the administrative code of the city of New York.
    (3) Additional provisions applicable to this subsection.
    (A) Request for annuity withholding. A  request  that  an  annuity  be
  subject  to withholding under this article shall be made by the payee in
  writing to the person making the annuity payments. Such a  request  may,
  notwithstanding  any  provision of law to the contrary, be terminated by
  furnishing to the person making the  payments  a  written  statement  of

  termination.  Such a request for withholding or statement of termination
  shall take effect in such manner as the  commissioner  of  taxation  and
  finance shall prescribe.
    (B)  Withholding  on  lottery  winnings upon change of residence. If a
  payee of lottery winnings subject to the provisions of subparagraph  (D)
  of  paragraph  two  of  this  subsection changes status from resident to
  nonresident, withholding in  accordance  with  such  subparagraph  shall
  constitute  other  security  acceptable  to  the commissioner within the
  meaning of subsection (d) of section six  hundred  thirty-nine  of  this
  article.
    (C)  Proceeds.  For purposes of subparagraphs (D) and (E) of paragraph
  two of this subsection, proceeds from a wager  shall  be  determined  by
  reducing the amount received by the amount of the wager.
    (D)  Taxes  withheld  at maximum rate. The tax withheld on any payment
  subject to withholding under subparagraph (D) or (E) of paragraph two of
  this subsection shall be withheld at the highest rate of tax on New York
  taxable income, without any allowance for deductions or  exemptions,  in
  effect  under  this article for the taxable year in which the payment is
  made.
    (E)  Determination  of  residence.  For  purposes  of   applying   the
  provisions  of  subparagraphs  (D)  and  (E)  of  paragraph  two of this
  subsection, any payor of proceeds shall determine the residence  of  the
  payee of such proceeds in accordance with regulations or instructions of
  the  commissioner of taxation and finance or, in the absence of any such
  regulations or instructions, in accordance with the address of the payee
  required under the provisions of paragraph  six  of  subsection  (q)  of
  section thirty-four hundred two of the internal revenue code.
    * NB Expires per ch. 782/88 § 8
    *  (b) Extension of withholding to unemployment compensation benefits,
  annuity payments, and lottery winnings.--
    (1) For purposes of this article--
    (A) any supplemental unemployment  compensation  benefit  paid  to  an
  individual  to  the  extent  includible  in  such  individual's New York
  adjusted gross income or New York source income,
    (B) any  payment  of  an  annuity  to  an  individual  to  the  extent
  includible  in  such  individual's New York adjusted gross income or New
  York source income, if at the time the payment is made  a  request  that
  such  annuity be subject to withholding under this article is in effect,
  and
    (C) any periodic payment (but only where such payment  is  part  of  a
  series  of  payments  extending  over a period greater than one year) of
  lottery winnings by the division of the lottery,  if  at  the  time  the
  payment  is  made  a  request  that  such lottery winnings be subject to
  withholding under this article is in effect, shall be treated as  if  it
  were  a  payment  of  wages  by an employer to an employee for a payroll
  period.
    (2) Request for withholding.--A request that an annuity be subject  to
  withholding  under this article shall be made by the payee in writing to
  the person making the annuity  payments,  and  a  request  that  lottery
  winnings  be  subject to withholding under this article shall be made by
  the payee in writing to the division  of  the  lottery,  in  the  manner
  prescribed  by  the commissioner of taxation and finance. A request that
  an annuity be subject to withholding may, notwithstanding any  provision
  of law to the contrary, be terminated by furnishing to the person making
  the  payments a written statement of termination. A request that lottery
  winnings be subject to withholding  under  this  article  shall  not  be
  revocable  while  the payee is a nonresident, and shall constitute other
  security  acceptable  to  the  tax  commission  within  the  meaning  of

  paragraph  four  of  subsection (c) of section six hundred fifty-four of
  this article. Such a request for withholding or statement of termination
  shall take effect in such manner as the  commissioner  of  taxation  and
  finance shall provide by regulation.
    * NB Effective per ch. 782/88 § 8
    (c) Withholding exemptions. For purposes of this section:
    (1)  The  number  of New York withholding exemptions which an employee
  receiving wages taxable under this article may claim  shall  not  exceed
  the  number of New York exemptions allowed pursuant to the provisions of
  section six hundred sixteen and such  additional  New  York  withholding
  exemptions  as  may  be prescribed by regulations or instructions of the
  commissioner of taxation and finance, taking into account the applicable
  standard deduction and such other factors as he finds appropriate.
    (2) The amount of each New York withholding  exemption  shall  be  the
  amount  of  the New York exemption allowed pursuant to the provisions of
  section six hundred sixteen.
    (3) Withholding exemption certificate. An employee shall  be  required
  to  file with his employer a withholding exemption certificate in accor-
  dance with regulations or instructions prescribed by the commissioner of
  taxation and finance.