It means you are subject to NY tax is you are working remotely for your convenience and exempt if you are working remotely for your employer's convenience. Employers are required to withhold and pay personal income taxes on wages, salaries, bonuses, commissions, and other similar income paid to employees.Employers generally must withhold federal income tax from employees' wages. To figure out how much tax to withhold, use the employee's Form W-4. At the end of the year, the employer must complete Form W-2, Wage and Tax Statement, to report wages, tips and other compensation paid to an employee. Employers are required to make federal payroll tax payments to the government, as well as filing the proper reporting and informational returns. Employers are expected to withhold state income tax from an employee's wages if that employee is subject to state income tax unless noted below. Liable employers must register with TWC to create a tax account. Employers report employee gross wages each quarter. Travis County taxpayers asked us to make credit and debit card and electronic check payments available to them.