Our New York City CPA firm provides tax and accounting services to self-employed and business owners in NYC and lower Manhattan. Recently, the New York Department of Taxation and Finance has issued a notice discussing the personal income tax implications of the state’s new paid family leave program. Here is the specific guidance regarding paid family leave rules in New York State:
- Benefits paid to employees will be taxable non-wage income that must be included in federal gross income;
- Taxes will not automatically be withheld from benefits, but employees can request voluntary tax withholding;
- Premiums will be deducted from employees’ after-tax wages;
- Employers should report employee contributions on Form W-2 using Box 14—State disability insurance taxes withheld; and
- Benefits should be reported by the State Insurance Fund on Form 1099-G and by all other payers on Form 1099-MISC.
If you have questions about the New York State Paid Family Leave Program or self-employment taxes in NYC, please contact our nyc cpa firm.