DOTAF Announces Changes for Employers on Withholding Taxes and Wage Reporting
Per the notice below, the New York State Department of Taxation and Finance (DOTAF) announces significant changes for employers with respect to withholding taxes and wage reporting.
Significant changes coming March 2025 for withholding tax and wage reporting
To improve your filing experience, reduce errors, and increase compliance for employer reporting of each employee’s information, the Tax Department is streamlining withholding tax and wage reporting forms and Web File applications. These improvements will affect the way you file in March 2025.
Significant changes coming to withholding tax and wage reporting
To improve your filing experience, reduce errors, and increase compliance for employer reporting of each employee’s information, the Tax Department is streamlining withholding tax and wage reporting forms and Web File applications. These improvements will affect the way you file in March 2025. You can find the latest on these improvements directly below.
Highlights for changes beginning March 2025
- On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file Part A – Unemployment insurance (UI) information, Part B – Withholding tax (WT) information, and Part C – Quarterly employee/payee wage reporting and withholding information, together as a single return. You no longer have the option to file the three parts separately. Additionally, if you are required to report both Wages and Other wages, you must submit this information on one return.
- On Form NYS-45 Part C, you must separately report New York State, New York City, and Yonkers tax withheld for each employee.
- In the NYS-45 Web File application, you can upload files for Part C wage reporting information without a limit to the number of employees you can report. Additionally, our NYS-45 Upload for tax preparers and payroll service companies includes the ability to upload Part C wage reporting information with one submission. With these enhancements, we are retiring our stand-alone Wage Reporting Upload application within Online Services.
- You can electronically file all withholding tax returns, including amended returns. Our online applications will automatically perform all mathematical calculations and reduce errors.
- To amend your Form NYS-45 or Form NYS-1, Return of Tax Withheld, you must submit a complete, new filing (including all return parts and all employee records, not just the changes). When using Web File, your original information will prepopulate, so it’s easier and faster for you to correct errors online.
What's changing for you?
Need to know if you're impacted? We'll add more content as it becomes available. To receive notifications when we update this page, subscribe to Withholding tax.
We're here to help
To help you prepare for the upcoming transition, we'll answer frequently asked questions as we receive them and add them to this page: https://www.tax.ny.gov/bus/wt/changes-2025/.
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