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15076: NYS-45 - Withholding Calculation & SDI (DAS)


New York

Drake Accounting®: I set up the State Disability for New York as not taxable to federal or state, but the NYS-45 is still calculating withholding on it. Why? 

 

Scenario: The user sets up a client in New York with the employee deduction for NY State Disability as not taxable to the Federal or to the State. The total wages shown on the federal 941 exclude NY SDI as the user intends. The NYS-45 total wages do not exclude SDI, so that state withholding is calculated on the employee's SDI contributions as part of wages. Shouldn't the NYS-45 show total wages after the NY SDI is withheld?

NY does not permit excluding SDI from total wages on which withholding is calculated.

The calculations on the NYS-45 are defined by the state. The instructions for Line 1 of the NYS-45 indicate that ALL pay to the employee is entered. The software is programmed per the instructions. All wages are included on Line 1 regardless of deductions.

The current withholding rate per New York is 1/2 of 1% of wages paid. In addition, although the cap is $0.60 per week, you cannot default to withhold a flat rate of 60 cents per week. To set up the NY SDI correctly, you should enter the current required % withholding and DAS will ensure that the % is calculated and the correct cap is applied based on the frequency and pay. 

NYS-45 Instructions for Line 1:

"Line 1 – Enter the total of all remuneration paid to all employees during this quarter (full or part-time, permanent or casual) including amounts in excess of the UI wage base per year. If no remuneration was paid this quarter, enter 0 on line 1 and in Part C, column C."

 


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