You must withhold personal income tax. Employers are required to withhold and pay personal income taxes on wages, salaries, bonuses, commissions, and other similar income paid to employees.Your W-2 is a record of your earnings and tax withheld for the year. You use information found on your W-2 to file your federal, state, and local tax returns. New York's local and state minimum wage guidelines, frequently asked questions, and resources for navigating local and state taxes. To claim exempt status, you must meet certain conditions and submit a new Form W-4 and a notarized, unaltered Withholding Certificate Affirmation each year. Use our easy payroll calculator New York businesses trust to quickly run payroll, or look up New York's payroll 2024 state tax rates. Step 5: Process Payroll. New York has some of the highest sales and property tax rates in the country, though rates vary depending on where you live within the state. A 9.62 percent withholding rate is applied to any additional commissions or bonuses.