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Hi All,

Does anyone have documentation regarding the NT HWB being required in box 1 & box 16?  I know it also goes in box 14 but I cannot find any solid information from the state regarding box 1 & 16 having to match.

Robi:

I have found this link that may provide answers to your questions:

https://health.ny.gov/health_care/medicaid/providers/hwb_program/hwb_program_faq.htm

Q. I am an employee. What are the tax implications of the bonus? Is the bonus considered taxable income?

A. Bonus payments paid to a New York State (NYS) resident are not subject to NYS personal income tax. To determine how the bonus payment may affect your specific situation, please consult with a tax professional.

Q. Do the bonuses have to be paid out as payroll or can they be 1099. If they can be 1099, will a form 1099 issued to the employee (under the employee's social security number) for any payment as Federal income tax will most likely be owed?

A. For federal income tax purposes, bonuses are considered supplemental wages and are required to be included as wages on the employee's W-2. See IRS Publication 15, Employer's Tax Guide, and IRS publication 525, Taxable and Nontaxable Income, for more information.

Q. Are HWB Program bonus payments exempt from New York State and local income tax?

A. Yes, the HWB Program bonus payments to employees is exempt from both NYS and local income tax (in municipalities such as New York City).

Q. How should employees ensure their HWB Program bonus remain exempt from NYS taxes when filing their 2022 taxes, as W-2 income for Federal and State taxes must match?

A. Eligible employees should complete Form IT-225, and submit with their NYS tax return.

I hope this website helps as there are other questions that may provide answers as well.

Hi All,

Does anyone have documentation regarding the NT HWB being required in box 1 & box 16?  I know it also goes in box 14 but I cannot find any solid information from the state regarding box 1 & 16 having to match.

Thank you for this information.  I reviewed all of this prior.  I have not found anything indicating boxes 1 & 16 have to match.  However, Paylocity is stating boxes 1 & 16 have to match.  D you interpret it that way?  or simply it is in boxes 1 & 14?

Robi:

I have found this link that may provide answers to your questions:

https://health.ny.gov/health_care/medicaid/providers/hwb_program/hwb_program_faq.htm

Q. I am an employee. What are the tax implications of the bonus? Is the bonus considered taxable income?

A. Bonus payments paid to a New York State (NYS) resident are not subject to NYS personal income tax. To determine how the bonus payment may affect your specific situation, please consult with a tax professional.

Q. Do the bonuses have to be paid out as payroll or can they be 1099. If they can be 1099, will a form 1099 issued to the employee (under the employee's social security number) for any payment as Federal income tax will most likely be owed?

A. For federal income tax purposes, bonuses are considered supplemental wages and are required to be included as wages on the employee's W-2. See IRS Publication 15, Employer's Tax Guide, and IRS publication 525, Taxable and Nontaxable Income, for more information.

Q. Are HWB Program bonus payments exempt from New York State and local income tax?

A. Yes, the HWB Program bonus payments to employees is exempt from both NYS and local income tax (in municipalities such as New York City).

Q. How should employees ensure their HWB Program bonus remain exempt from NYS taxes when filing their 2022 taxes, as W-2 income for Federal and State taxes must match?

A. Eligible employees should complete Form IT-225, and submit with their NYS tax return.

I hope this website helps as there are other questions that may provide answers as well.

Original Message:
Sent: 01-27-2024 14:03
From: Robi Vick, CPP
Subject: NY HWB Box 1 & 16

Hi All,

Does anyone have documentation regarding the NT HWB being required in box 1 & box 16?  I know it also goes in box 14 but I cannot find any solid information from the state regarding box 1 & 16 having to match.

#U.S.
#State/Local/Provincial

Hi All,

Does anyone have documentation regarding the NT HWB being required in box 1 & box 16?  I know it also goes in box 14 but I cannot find any solid information from the state regarding box 1 & 16 having to match.