City of New York Resident Tax

For City of New York residents, you specify the employee's status and exemptions.

Deltek Modification Date - 1/4/06

Enter the following field information for residents of New York City on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee for federal income tax purposes on Form W-4: S: Single M: Married
Exemptions	Enter the total number of withholding exemptions claimed by the employee on New York State Employee’s Withholding Certificate, Form IT-2104. If the employee did not submit Form IT-2104, use the total number of exemptions claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness. Exemptions for dependents
Other Exemptions	New York’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

DPS automatically computes the following variables.

Standard Deduction

The Standard Deduction (annualized exclusion) is a table-based deduction applied to all employees. The amount of the deduction depends on the employee’s filing status as follows:

Status	Deduction
Single	$5,000
Married	$5,500

Allowance

The Allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $1,000.

How DPS Calculates Tax

To calculate an employee's New York City tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Standard Deduction, Allowance, and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.