S T A T E   O F   N E W   Y O R K
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                                  2589

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 24, 2009
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to increasing the threshold for
  employer's return and payment of withheld taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraphs 1 and 2 of subsection (a) of section 674 of the
tax law, paragraph 1 as added by chapter 166 of the  laws  of  1991  and
paragraph  2  as amended by chapter 477 of the laws of 1998, are amended
to read as follows:
  (1) If, after having made a payroll, an employer has been required  to
deduct  and  withhold,  but  has  not  paid over, a cumulative aggregate
amount of [seven hundred] ONE THOUSAND dollars or more of tax  during  a
calendar  quarter,  such  employer  shall file a return and pay over the
tax. If an employer was required to remit a cumulative aggregate  amount
of  less  than  fifteen  thousand  dollars in withholding tax during the
calendar year which precedes the previous calendar year, the  tax  shall
be  paid  over on or before the fifth business day following the date of
making such a payroll. If an employer was required to remit a cumulative
aggregate amount more than or equal to fifteen thousand dollars in with-
holding tax during the calendar year which precedes the previous  calen-
dar year, the tax shall be paid over on or before the third business day
following  the  date of making such a payroll. In the case of an "educa-
tional organization" as defined in paragraph two of  subsection  (a)  of
section  nine  of this chapter or a "health care provider" as defined in
paragraph four of subsection (a) of section nine of  this  chapter,  the
tax shall be paid over on or before the fifth business day following the
date of making such a payroll.
  (2)  If,  at  the  close of any calendar quarter, an employer has been
required to deduct and withhold, but has not  paid  over,  a  cumulative

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08912-01-9
              

S. 2589                             2

aggregate  amount  of  less than [seven hundred] ONE THOUSAND dollars of
tax during such calendar quarter, such employer shall pay over  the  tax
with the quarterly combined withholding, wage reporting and unemployment
insurance return required to be filed for such quarter by paragraph four
of  this subsection, on or before the last date prescribed by such para-
graph for filing such return.
  S 2. This act shall take effect January 1, 2010, and  shall  apply  to
all taxes required to be deducted and withheld on and after such date.