Lance's Corner

DOTAF Announces Tax Withholding and Wage Reporting Changes for Employers

Oct 8, 2024

The New York State Department of Taxation and Finance (DOTAF) has announced changes for employers with respect to withholding taxes and wage reporting.

Department of Taxation and Finance

Significant changes coming to withholding tax and wage reporting

To improve your filing experience, reduce errors, and increase compliance with 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.

To prepare for these changes, subscribe to Withholding tax to receive an email when we update this page, or check back frequently.


What's changing for your filing method?

Online Services Web File New

On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single 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 Online Services Web File application, you can browse and upload files for Part C wage reporting information without a limit to the number of employees you can report. You may continue to use manual entry for up to 1,000 lines of wage reporting data. For more information, see Wage Reporting Web Upload: Electronic reporting format. Updated

You cannot request a credit across tax years. If you have an overpayment on your fourth quarter return, we will automatically send you a refund.

Online Services Web Upload New

On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single return.

On Form NYS-45 Part C, you must separately report New York State, New York City, and Yonkers tax withheld for each employee.

You can use ACH debit with any withholding tax application, including the NYS-45 Online Services Web Upload.

You cannot request a credit across tax years. If you have an overpayment on your fourth quarter return, we will automatically send you a refund.

We are discontinuing our stand-alone Wage Reporting Upload application within Online Services. If you're filing for one employer, you may upload this information using NYS-45 Web File. If you're filing for multiple employers, you may use the new NYS-45 Upload. 

We revised the upload file layouts. In late Fall 2024, we will publish:

  • updates for the NYS-1 Online Services Web Upload in Publication 66, Electronic Reporting of Form NYS-1 Information, and
  • updates for the NYS-45 Online Services Web Upload in the new Publication 72.5, Electronic Reporting of Form NYS-45 Information.

Federal/State Employment Taxes (FSET) program New

On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single return.

On Form NYS-45 Part C, you must separately report New York State, New York City, and Yonkers tax withheld for each employee.

You cannot request a credit across tax years. If you have an overpayment on your fourth quarter return, we will automatically send you a refund.


Software developers

The FSET schema is updating from version 5.0 to version 5.6. You must test your upload files using the new 5.6 version. We'll alert you when testing opens (planned for late Fall 2024).

We updated the FSET field definitions, rules, and error codes. Use the updated spreadsheets to ensure FSET filings are not rejected. We'll post the new 2025 standards in late Fall 2024. 

If you're interested in becoming an approved FSET vendor or have specific questions regarding FSET testing, please email us at nystaxfset@tax.ny.gov.

Paper New

Electronic filing is required for all withholding tax forms.

You can now electronically file all withholding tax returns, including amended returns. Our online applications will automatically perform all mathematical calculations and reduce errors.

If you are exempt from the e-file mandate, you may file paper returns. For more information, see Electronic filing mandate for business taxpayers.

On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single return.

On Form NYS-45 Part C, you must separately report New York State, New York City, and Yonkers tax withheld for each employee.

You cannot request a credit across tax years. If you have an overpayment on your fourth quarter return, we will automatically send you a refund.

We are discontinuing Forms NYS-45-X and NYS-45-ATT. If you are exempt from the e-file mandate, file and submit a new and complete Form NYS-45 and mail it to the address on the form. 

What's changing for everyone?

Forms, publications, and notices New

On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single return. This includes Part A – Unemployment insurance (UI) information, Part B – Withholding tax (WT) information, and Part C – Quarterly employee/payee wage reporting and withholding information. 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.

You must include your employer mailing address on most forms.

We're creating, updating, and retiring certain withholding tax and wage reporting forms and publications. To review them, see Forms and publications changes.

We’re changing how you correct missing or invalid Social Security numbers. When this information is incorrect, we will send you a notice (TR-900-SD), but will no longer accept responses to the notice to correct the information. Instead, you must file an amended return to correct Social Security numbers. The amended return must be a complete, new filing (including all return parts and all employee records, not just the changes). 

Amending returns

Key changes New

You can electronically file all withholding tax returns, including amended returns. Our online applications will automatically perform all mathematical calculations and reduce errors.

When using Online Services Web File to amend your return, your original information will prepopulate if you electronically filed your original return, so it’s easier and faster for you to correct errors online.

When amending 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) to avoid processing delays and penalties. If you're amending your Form NYS-1, you must provide the payroll date previously reported.

When using Online Services Web Upload, if you are uploading returns for multiple employers in one submission, you can include both amended and original returns in the same file.

When to amend New

You may need to amend Form NYS-1 if:

  • you need to correct a previously reported payroll end date
  • you owe additional money for the payroll end date and have not filed your Form NYS-45 for the quarter

You may need to amend Form NYS-45 to:

  • adjust the tax due on your previously filed return
  • correct invalid Social Security numbers in Part C – Quarterly employee/payee wage reporting and withholding information
  • report a ceased paying wages date if your last payroll date fell within a previously filed quarter
  • report a sale or transfer of all or part of your business

When not to amend New

You do not need to amend Form NYS-1 if: 

  • you overpaid for a payroll end date; simply claim a credit on your next Form NYS-1 that is within the same quarter or, if this is the last NYS-1 you are filing within the quarter, simply claim a credit or refund on your Form NYS-45
  • you need to correct distribution; report the correct distribution when you file Form NYS-45 and we’ll adjust it for you

You do not need to amend Form NYS-45 to:

  • correct your Unemployment Insurance (UI) rate

Business closure New

Closing your business? You now report the final payroll date only on Form NYS-45.

We're making progress!

We've posted new or updated information on our website about the upcoming improvements to withholding tax and wage reporting.  To see what's changed, visit our changes page and look for these icons:
  • New icon on tax.ny.gov
  • Updated icon on tax.ny.gov

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc