Date: May 11, 2006 Bulletin Number: 640

City of Yonkers Tax Adjustment

To notify agencies of the automatic City of Yonkers tax adjustment as outlined below.


Per Payroll Bulletin No. 632, the withholding tax for the City of Yonkers, which was previously assessed at five (5) percent of the tax calculated for New York State income tax, was changed to ten (10) percent in January 2006. The tax tables were updated and the new ten (10) percent rate became effective for paychecks dated March 22, 2006.


Affected Employees
Employees with a Locality of 84000 and the "Resident" box checked on the Local Tax Data page and who had Yonkers tax withheld from paychecks dated January 5, 2006 through March 16, 2006. This tax was withheld at an incorrect rate.

Affected employees are employed in the agencies appearing on Control-D report NHRP586. The agencies appearing on this Control-D report are listed in
Attachment A.

Effective Dates

Paychecks dated May 25, 2006 (Institution).
Paychecks dated May 31, 2006 (Administration).


OSC Actions

OSC will recover under-withheld Yonkers tax in one (1), two (2) or three (3) pay periods as follows:

Amount of tax under-withheld Number of pay periods for recovery
$ 1.00 to $29.99 One (1)
$30.00 to $59.99 Two (2)
$60.00 to $89.99 Three (3)
$90.00 or more OSC will contact agency to arrange for recovery.

OSC will notify the affected employees (see Attachment B) at their current home address and indicate the adjustment amount to be recovered.


Control-D Report

OSC has created a Control-D Report (NHRP586 Yonkers Tax Under Withholding Amounts) that identifies employees and the total amounts of Yonkers tax under-withheld. This report will be used to automatically recover Yonkers tax based on the chart above.


Agency Actions

Agencies appearing on Attachment A should review the NHRP586 report to identify affected employees. OSC's letter instructs these employees to direct questions to their agency payroll office.



Attachment A is a list of agency codes that appear on the NHRP586 report.

Attachment B is a copy of OSC's letter to affected employees.



Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.