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Expert Advice

Multi-Tax – NYS Tax Department Issues Guidance Regarding Minimum Wage Reimbursement Credit

For tax years beginning on or after January 1, 2014, and before January 1, 2019, taxpayers who are eligible employers or owners of eligible employers are allowed a credit based upon the number of hours worked by certain employees who are paid the New York minimum wage.

 An eligible employer is a corporation (including a New York S corporation), a sole proprietorship, a limited liability company, or a partnership.

The credit may be claimed by an eligible employer or an owner of an eligible employer (e.g., partner in a partnership or shareholder of an S corporation) who is subject to tax under any of the following articles of the Tax Law:

  •  Article 9, section 185 (franchise tax on farmers’, fruit growers’, and other like agricultural corporations organized and operated on a co-operative basis);
  • Article 9-A (franchise tax on business corporations);
  • Article 22 (personal income tax);
  • Article 32 (franchise tax on banking corporations); or
  • Article 33 (franchise taxes on insurance corporations).

 

For information regarding eligible  employees, amount of creidt and credit limitations, click on the link below for the  NYS Department of Taxation and Finance document: http://www.tax.ny.gov/pdf/memos/multitax/m13_8c_7i.pdf 

If you have any questions regarding the NYS Multi-Tax Minimum Wage Reimbursement Credit, contact our office at 845 485-5510.