Hurricane Sandy: New York Temporarily Suspends Withholding for Certain Nonresidents

Author: Rena Pirsos, XpertHR Legal Editor

The New York State Department of Taxation and Finance will not require employers to withhold New York State or Yonkers nonresident earnings tax from wages paid prior to January 1, 2013 to employees who are nonresidents of the state and who are:

• Temporarily working in New York State solely as part of the Hurricane Sandy relief efforts; or
• Working in New York State solely because the employer temporarily relocated employees to the state, or temporarily established an office in the state because of the effects of Hurricane Sandy on the employer's business location outside of New York State.

If such an employee will be working in New York State after December 31, 2012, then the employer will be required to withhold tax beginning January 1, 2013. An employer that has already withheld income tax from an employee covered by this policy should refund the tax withheld to the employee.

DTF Announcement: Policy for employees, employers, and businesses temporarily in New York State because of Hurricane Sandy, Nov. 21, 2012.

Additional Resources

Payroll > Withholding Taxes > New York