What is the IT-2104 Form for New York Employers?

IT-2104 and a coffee cup

The IT-2104 form is an essential document for New York employers when it comes to payroll administration. It is used to determine the amount of state income tax that should be withheld from each employee's paycheck. 

This form, which is similar to a W4 for federal withholding taxes, provides information like filing status and allowances so that the right amount of taxes can be taken out of each paycheck.

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Why do I need the IT-2104 form?

It is important for employers to use the IT-2104 form when adding a new employee to your payroll, as it ensures that the correct amount of state income tax will be withheld from their earnings. Therefore, employers should provide this form to all new hires in order to comply with state tax regulations. 

Are you familiar with the IT-2104 form? Are you using it for your payroll administration process? 

If not, make sure to look into this important document as soon as possible. It is essential in order to ensure that your employees' taxes are being withheld correctly.

I never needed the IT-2104 form before; why do I need it now?

The recent changes to the W4 form have made it necessary for employers to also use the IT-2104 form. 

This is because the information that was previously redundant between the two forms is now different, and employers need to ask for both sets of data in order to properly withhold taxes from each paycheck. Therefore, you should now require the IT-2104 form in order to ensure that you are withholding the right amount of state taxes from your employees' paychecks. 

By using the IT-2104 form, you can be confident that your payroll administration process is compliant with state tax regulations and that all of your employees have the correct amount of taxes withheld from their earnings. So, ensure you look into this important document now and ensure your payroll process is up to date.

How do my employees fill out the IT-2104?

Filling out the IT-2104 form is actually quite simple. All you have to do is provide some basic information about yourself, including your name, address, and Social Security number. Then, you'll need to select what category best describes your financial situation. You can choose from a list of options such as single with no dependents, married with three kids, or self-employed. 

In sections 3, 4, and 5, you can also input additional amounts that should be taken out of each paycheck. This feature is especially useful if you want to pay off any owed taxes ahead of time without having to worry about incurring late fees or interest. 

Once you've filled out all the necessary information, you simply have to submit the form and wait for your new tax withholding rate to be applied. MicrosoftTeams-image (10)

How many allowances should my employees claim on the IT-2104? 


The number of allowances an employee should claim on their IT-2104 form will depend on their individual financial situation. But in general, the more withholding allowances an employee claims, the lower their New York income tax deduction will be from each paycheck. 

And in order to determine the best number of allowances for each employee, you should encourage them to talk to their accountants or at least use the IRS's withholding estimator. This tool can help them to estimate their tax obligation and determine the right number of allowances for them to claim. 

It is important to note that while claiming more allowances may mean a lower tax deduction from each paycheck, it could also result in a larger amount owed at the end of the year. Therefore, be sure to inform your employees that they should use the withholding calculator regularly and adjust their allowances if necessary.  

In conclusion, in order to ensure that you are complying with state tax regulations and that your employees are having the right amount of taxes taken out of their paychecks, it is important for employers to provide new hires with the IT-2104 form. The number of allowances to be claimed by each employee will depend on their individual financial situation, and it is recommended that they use the IRS's withholding calculator in order to determine the most appropriate amount for them. 

Hopefully, this helped you better understand how you can use the IT-2104 form to ensure that your payroll administration process is compliant with state tax regulations.

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