What's happening
This bill raises the threshold for employers’ required return and payment of withheld taxes from $700 to $1,000 per quarter.
Why it matters
Reduces administrative burden for small employers. By raising the threshold from $700 to $1,000 per quarter, fewer small businesses will need to comply with more frequent tax return and payment deadlines, potentially saving time and compliance costs.
May improve cash flow management for smaller employers. Employers with quarterly withholding totals below the new $1,000 threshold can remit taxes less frequently, allowing them to retain funds longer and manage payroll expenses more flexibly.
Reflects inflation and economic changes. The threshold increase updates statutory requirements to better align with current wage levels and inflation since the previous $700 limit was set, potentially making tax rules more relevant to today’s business environment.
Could affect state revenue timing. While not reducing the total tax owed, this change could slightly delay when the state receives withheld taxes from certain employers, which may have minor implications for short-term state cash flow.
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Who cares
Headline styles
Raise Tax Filing Threshold
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
2 Multi-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6445
2017-2018 Regular Sessions
IN ASSEMBLY
March 7, 2017
Introduced by M. of A. B. MILLER, KOLB, HAWLEY, FINCH -- Multi-Sponsored by -- M. of A. BLANKENBUSH, GOODELL -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the threshold for employer's return and payment of withheld taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs 1 and 2 of subsection (a) of section 674 of the tax law, paragraph 1 as added by chapter 166 of the laws of 1991 and paragraph 2 as amended by chapter 477 of the laws of 1998, are amended to read as follows:
(1) If, after having made a payroll, an employer has been required to deduct and withhold, but has not paid over, a cumulative aggregate amount of [seven hundred] one thousand dollars or more of tax during a calendar quarter, such employer shall file a return and pay over the tax. If an employer was required to remit a cumulative aggregate amount of less than fifteen thousand dollars in withholding tax during the calendar year which precedes the previous calendar year, the tax shall be paid over on or before the fifth business day following the date of making such a payroll. If an employer was required to remit a cumulative aggregate amount more than or equal to fifteen thousand dollars in withholding tax during the calendar year which precedes the previous calendar year, the tax shall be paid over on or before the third business day following the date of making such a payroll. In the case of an "educational organization" as defined in paragraph two of subsection (a) of section nine of this chapter or a "health care provider" as defined in paragraph four of subsection (a) of section nine of this chapter, the tax shall be paid over on or before the fifth business day following the date of making such a payroll.
(2) If, at the close of any calendar quarter, an employer has been required to deduct and withhold, but has not paid over, a cumulative
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09406-01-7
A. 6445 2
aggregate amount of less than [seven hundred] one thousand dollars of tax during such calendar quarter, such employer shall pay over the tax with the quarterly combined withholding, wage reporting and unemployment insurance return required to be filed for such quarter by paragraph four of this subsection, on or before the last date prescribed by such paragraph for filing such return.
§ 2. This act shall take effect January 1, 2018, and shall apply to all taxes required to be deducted and withheld on and after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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