20 CRR-NY 2396.7NY-CRR
20 CRR-NY 2396.7
20 CRR-NY 2396.7
2396.7 EFT and filing.
(a) Choice of paymentoption.
Taxpayers who are mandatory participantscan elect one of the four options available to make payments to theprogram. Taxpayers may elect to make payments by ACH debit, ACH credit,fedwire, or certified check. Where any of the methods require or allowelectronic filing, that filing will serve as a substitute for thefiling on a paper New York State employer's return of tax withheld(NYS-1).
(b) Taxpayers electingACH debit
(1) Taxpayers who areparticipating in the program who elect the ACH debit payment optionmust, on or before 6:00 p.m. (Eastern time) on the last business daybefore the applicable due date, report their tax payment for the applicableperiod by telephone or through the program's website to the electronicpayment reporting system. (This is the case because there is a one-daylag between the date on which payment is authorized and the date onwhich the transfer is executed, i.e., funds are deducted fromthe taxpayer's bank account and transferred to the department'sdepository bank.) The electronic payment reporting system can be accessedusing the toll-free number or through the program's website.Information on both methods of accessing the system will be providedto taxpayers as part of the notification and enrollment process.
(2)
(i) Prior to makingits first payment of tax by ACH debit, a taxpayer must have furnishedthe department with the banking information necessary to generateACH debits against its designated account. If a taxpayer's bankinginformation changes after the first payment, the taxpayer must immediatelyinform the department of the changes to ensure timely payments. Themethod of changing bank information will be described in the programmaterials.
(ii) Upon reachingthe electronic payment reporting system, the taxpayer will be askedfor the unique password and access code provided to the taxpayer aspart of the notification and enrollment process. The password, accesscode, identity of the taxpayer and choice of payment option will beverified, and after approval, the taxpayer will be granted accessto the electronic payment reporting system. Upon accessing such system,the taxpayer will be asked to report the following information:
(a) the reporting period;
(b) New York Stateliability;
(c) City of New York liability;
(d) City of Yonkers liability;
(e) payment amount;
(f) final payment indicator; and
(g) any other informationthe department deems necessary for filing and payment reporting purposes.
If the above-enumerated information is reportedby telephone, the information will be verified over the telephone.If the information is reported using the program's website, itwill be verified by the taxpayer online. Once the taxpayer agreesthat all information reported is correct, the taxpayer will be givena confirmation number for the transaction. This number will serveas proof that the taxpayer has filed its withholding return for theapplicable payroll or payrolls and has complied with the signaturerequirements of Part 153 of this Title.
(c) Taxpayers electingACH credit or fedwire.
(1) Participating taxpayerswho elect the ACH credit or fedwire payment option must initiate eachpayment of tax by contacting their own financial institution and requestingsuch institution to transfer both the appropriate payment of tax andthe necessary addenda record information to the department'sdepository bank via an ACH credit or fedwire transfer, as applicable.An ACH credit taxpayer must initiate each payment transaction withits financial institution on or before the last business day beforethe applicable due date at such time as designated by its bank toassure that the department's depository bank receives the paymentand accompanying addenda record information on or before the applicabledue date. A fedwire taxpayer must initiate each payment transactionon or before the applicable due date at such time as designated byits bank to assure that the department's depository bank receivesthe payment and accompanying addenda record information on or beforethe applicable due date.
(2) Taxpayers electingto use ACH credit or fedwire transfer must provide the filing informationprescribed by the department with their ACH credit or fedwire transfer,as applicable. These taxpayers need not report their withholding taxliability for applicable payroll or payrolls by telephone or throughthe program's website to the electronic payment reporting system.
(d) Certified checktaxpayers.
(1) General rule. Taxpayers,other than educational organizations, that are required to participatein the program and who elect to make payments by certified check,are required to file paper withholding tax returns and make paymentsof tax by certified check in accordance with the provisions of thissubdivision.
(i) Required mailingdate. In order to comply with the requirements of the program andto timely file such withholding tax return and pay the tax, a taxpayerthat chooses the certified check payment option must either mail thepaper return and a certified check for the amount of the tax liabilityon or before the second business day before the otherwise applicabledue date or assure that the department's depository bank receivesthe certified check and the paper return on or before the otherwiseapplicable due date.
(ii) Electronic filingnot applicable. Because taxpayers choosing the certified check paymentoption are required to file paper withholding tax returns, the provisionsin this section for electronic filing are not applicable to thosetaxpayers.
(e) Acknowledgementof payment.
To provide an acknowledgementof payment, the department will post a record of deposits to the taxpaper'sonline account which can be accessed through the program's website.Taxpayers may also request that the department mail an advice of depositor payment. Information will be provided by the program to participatingtaxpayers at the time of enrollment about how taxpayers may chooseto have an advice of deposit or payment mailed to them.
(f) Correcting mistakes.
If a taxpayer does not make a correct paymentof tax for a particular period or reports the wrong amount, the taxpayermust, on the nearest business day to thedate on which the error is discovered, make proper adjustment forsuch period. Information will be provided by the program about howto make this adjustment. If the taxpayer error involves an underpaymentof tax, interest will be charged and penalties may apply.
(g) Changing paymentoption.
(1) Taxpayers may electto change their payment option at any time during the program period.The department will make the methods of electing to change paymentoption available to taxpayers in the printed program description oron the program's website.
(2) Payment contingencyoptions for use in emergency situations. If a taxpayer is unable toutilize its chosen payment option for a particular payroll or payrollsdue to circumstances beyond its control, such taxpayer may utilizeany of the other payment options, excluding ACH debit, as an alternativepayment mechanism for such payroll or payrolls. The procedures specifiedin subdivision (c) or (d) of this section, as applicable, will governin such cases.
20 CRR-NY 2396.7
Current through September 30, 2022
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.