You may face the federal unemployment tax if you pay $1,500 or more in wages to an employee. Employers should take care to track the wages paid to employees to ensure that they do not forget to file Form 940.

Income Tax Withholding Laws

New York requires that employers withhold state income tax from the wages of employees. New York employers are required to provide these amounts to the Department of Taxation and Finance. If an employer fails to provide these amounts to the Department, then he or she may face charges of tax evasion or fraud.

Payment of Income Taxes

Individuals who reside in New York City will be required to pay several taxes at the local, state and federal level. The tax rate for those who live in New York City is 2.907 to 3.648 percent. An individual may face various taxation rates depending on his or her filing status. New York State also has various income tax percentages that are applicable for a person depending on his or her income level. These tax percentages range from four to eight percent. Those who earn under $16,450 will be required to pay a state tax of 4.5 percent. Those who earn approximately over $2 million a year will be required to pay a state tax of about 8 percent. One’s tax bracket may also vary depending on whether he or she is filing single or jointly within a marriage. New York State has a total of sixteen different tax brackets that may be applicable for a person.