NYSDA Publications

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