Income tax withheld to
Connecticut
Graduated, top rate 6.99%
Determination engine
Which state do you actually withhold in?
Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.
Withhold Connecticut income tax.
The work state does not tax these wages, so the residence state governs.
Employee certificate
None required
No state withholding allowance certificate applies.
Unemployment insurance
New York
Localized under factor 1: Localization.
Reciprocal agreement
No
New York has no reciprocal agreements.
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Below the New York nonresident threshold
New York does not require nonresident withholding until the employee exceeds 14 working days in the state. You entered 0. Per TSB-M-12(5)I, an employer is not penalized for failing to withhold New York tax on a nonresident employee if: the employee's primary work location is outside New York, the employer reasonably expects the employee to work 14 days or fewer in New York during the calendar year, and the employee in fact works 14 days or fewer. ANY part of a day worked in New York counts as a full day (job-related training days do not count). The rule does NOT apply to traveling salespersons paid on volume, deferred compensation, or nonresident public speakers/athletes/entertainers. SEPARATELY, New York applies the strictest CONVENIENCE-OF-THE-EMPLOYER rule in the country: a nonresident's remote workdays are sourced to New York unless the employee works from a bona fide employer office outside New York (a demanding multi-factor test).
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Track this, because it flips mid-year
Once the threshold is crossed, most states require withholding on all in-state wages for the year, not just the excess. Set an alert well before the limit.
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Connecticut also taxes this income, with a credit
The residence state taxes worldwide income. The employee claims a credit on the Connecticut return for tax paid to New York, which prevents true double taxation but usually still leaves a balance if Connecticut's rate is higher. Some employers withhold for both states; many withhold only for New York and let the employee manage the difference.
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New York has local income taxes
New York City imposes a resident personal income tax and Yonkers imposes a resident income tax surcharge plus a nonresident earnings tax -- all withheld through payroll (see Form IT-2104.1 for nonresident allocation). The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is an employer-paid tax on payroll in the MTA region, not withheld from employees.
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New York paid family and medical leave contributions
New York Paid Family Leave is 100% employee-funded at 0.432% of gross wages for 2026, capped at $411.91 per employee per year (NYSAWW $1,833.63). Separately, NY Disability Benefits Law (DBL) allows employee withholding of 0.50% of wages up to $0.60 per week. Employee contribution: 0.432%. These follow the state of unemployment coverage, not the income tax state.
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Connecticut also runs a paid leave program
The employee resides in Connecticut, which has a mandatory paid leave program, but unemployment coverage is localized to New York. Check whether Connecticut requires coverage based on residence; several programs use a work-location test and a few do not.
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Employer registrations you will need
- Connecticut — Income tax withholding: Connecticut Department of Revenue Services
- New York — Unemployment insurance: New York State Department of Labor
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This is a determination aid, not advice.
StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your
entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into
a judgement call. Every determination cites the state source it came from — verify against that source, and take
anything consequential to a payroll tax professional before you act on it.