Understanding the IT-2104 Form

The subject of taxes may not be the most engaging, but it’s certainly one that employees need to pay attention to ensure all paperwork is complete and completed correctly. 

Income taxes are withheld in 41 states in addition to federal income taxes. In New York State, the form that will need to be filled out to designate how much needs to be withheld is the IT-2104 Form. 

This form may seem complicated at first glance, but that’s where we can help. In this article, we will break down what employees will need to fill out the form to make sure they are compliant with all state withholding requirements. 

W-4 vs. IT-2104

Your employee may get confused when it comes to all the paperwork, especially when it comes to tax documents. While both of these forms will need to be filled out, they serve different functions. The W-4 is the document for federal income tax while the IT-2104 is the form for state income tax for the state of New York. 

Start With the Worksheet

One of the aspects of filling out tax forms that is the most anxiety-provoking is the fear that you made an error somewhere. Before you begin filling out your form, start with your worksheet first. This worksheet is designed to help guide you through all considerations you need to make when designating your withholding amount. When filled out carefully, this worksheet will help ensure you aren’t withholding too much or too little. 

Types of IT-2104 Forms

The IT-2104 form has different types. The one you fill out depends on a variety of factors that may apply to you and your situation. While most taxpayers will fill out the IT-2104 “Employee’s Withholding Allowance Certificate,” others may need to complete: 

• IT-2104-E Certificate of Exemption from Withholding
• IT-2104-IND New York State Withholding Exemption from Withholding for Native Americans
• IT-2104-MS New York State Withholding Exemption Certificate for Military Service Personnel
• IT-2104-P Annuitant's Request for Income Tax Withholding (An annuitant is an individual who is entitled to collect the regular payments of a pension or an annuity investment.)
• IT-2104-SNY Certificate of Exemption from Withholding for START-UP NY Program
• IT-2104.1 New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax

Payroll’s Responsibilities

It’s the responsibility of the payroll department to get new employees to fill out this form and return it. Once returned, payroll will then send it to the New York State Tax Department.

If for some reason an employee does not fill out the IT-2104 form, then payroll should withhold single with zero allowances. This will result in the most amount of taxes being withheld to ensure the employer isn’t out of compliance by not withholding enough New York State Taxes. 

If you're looking for more information about the purpose of the IT-2104 form and to download a copy visit our IT-2104 Form page.

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