DepartmentofTaxationandFinance
                                    ProgramOverview                                                  TR-370-N
                                                                                                                      (1/16)
                                    PrompTaxPaymentProgramfor
                                    WithholdingTax
  Descriptionoftheprogram                                       Withthisoption, youregister your bankaccount informationwith
                                                                us. Then, baseduponyour business payroll dates, youreport
  Thisoverviewexplainstheparticipationandfiling                 your taxliabilityandpayment informationusingour Online
  requirements of thePrompTaxpayment program for                Services application. OnlineServices hasbenefitsnot offered
  withholdingtax, anddescribespayment options.                  withother payment options. For example:
  Chapter 61of theLaws of 1989mandatesthe
  implementationof anElectronicFunds Transfer (EFT)             • Youcanviewyour payment historyandschedule(warehouse)
  Program for thecollectionof withholdingtaxes.                   transactionsat your convenience.
                                                                • TheTaxDepartment completestheACHdebit transactionsif
Requiredparticipation                                             your paymentsareinitiatedontime.
Withholdingtaxfilers must enroll intheprogram if:               • Your account informationisconfidential andprotectedbylaw.
• theaggregatetaxwithheldthroughForm NYS-45, Quarterly          ACHcredit – YouinitiateanACHcredit toNewYork State's
  CombinedWithholding, WageReporting, andUnemployment           withholdingtaxbankaccount andadebit toyour ownbank
  InsuranceReturn, filedfor theprevioustaxyear is $100,000      account, for theamount of thewithholdingtaxpayment. You
  or more.                                                      must includetherequiredfilingandpayment informationusing
                                                                theNational AutomatedClearingHouse(NACHA) Cash
PrompTaxbenefits
                                                                ConcentrationandDisbursement Plus Oneaddendarecord
Taxpayers participatinginPrompTaxwill benefit from the          (CCD+).
following:
                                                                Fedwire– YouinitiateaFederal ReserveBankingSystem credit
• Your electronic payment transactionreplacesyour needtofile    totheTaxDepartment'swithholdingtaxbankaccount through
  Form NYS-1, Returnof Tax Withheld (your payment servesas      your ownbankandadebit toyour bankaccount for theamount
  your NYS-1filing). Note: Youarestill requiredtofile           of thewithholdingtaxpayment. Youmust includetherequired
  Form NYS-45quarterly.                                         filinginformationfor thepayroll(s) youarereportingby usingthe
• Theabilitytoviewandupdateyour account informationonline       ThirdPartyInformationArea-Originator toBeneficiary
• Theabilitytoschedule(warehouse) AutomatedClearing             Information (OBI) field.
  House(ACH) debit payments inadvance                           Certifiedcheck– This payment optionisavailableto mandated
                                                                PrompTaxfilers only. If youchoosethis optionyouwill continue
Enrollment                                                      tofilepaper Form NYS-1andmakepayments bycertifiedcheck.
If youreceiveForm TR-370.1, Notificationof Required             Noelectronic filingisrequiredif youselect this option. Tobe
Participation, youmust enroll onlinewithin20daysof the          consideredontime, thepayment must bepostmarkedby the
postmarkdate. If youuseapayroll service, youmay list them as    U.S. Postal Serviceat least twobusinessdaysprior tothe
asecondary contact; however, if youwishtoallowtheTax            applicabletaxduedate. Youareresponsiblefor ensuringthat the
Department todiscuss your confidential account informationwith  payment ispostmarkedontime.
them, they will needproper authorization. Inmost instances, you
mayprovidethenecessaryauthorizationusingForm TR-2000,           PrompTaxfilingandpaymentduedates
E-ZRepTax InformationAccess andTransactionAuthorization.        Thetaxduedateisthreebusinessdaysfollowingthepayroll date
For morecomplexmatters, youmayrequireForm POA-1, Power          youarereporting. Inorder tobeontime, youmust initiateyour
of Attorney. Seeour websitefor moreinformation.                 transactionby:
Onceenrolled, youwill receive:                                  • ACHdebit – Nolater thantwobusinessdaysfollowingthe
                                                                  payroll dateyouarereporting(by5:59P.M., EasternTime)
• confirmationof enrollment, includingdetailsof your payment
  optionandstart date, anda                                     • ACHcredit – Nolater thantwobusinessdaysfollowingthe
                                                                  payroll dateyouarereporting
• six-digit access code
Verify that theinformationis correct. Payparticular attentionto • Fedwire– Nolater thanthreebusinessdaysafter thepayroll
                                                                  dateyouarereporting
theaccount androutingtransit numbersif youselect ACHdebit
as your payment option. If youhavequestions, contact the        • Certifiedcheck– Postmarkednolater thanonebusinessday
PrompTaxCustomer ServiceCenter.                                   followingthepayroll dateyouarereporting(or twobusiness
                                                                  days prior totheapplicableduedate)
Paymentoptions
                                                                Higher educationandhealthcareproviders (gotoour website
Youareresponsiblefor initiatingtheprocessfor any payment        for moreinformation) – Thetaxduedateiseight businessdays
optionyouchoose. Detailedinstructions for completinganyof the   followingthepayroll dateyouarereporting. Check withyour bank
payment options areonour website. Checkwithyour bankfor the     for thereportingdeadlinethat wouldensurethat theTax
reportingdeadlinethat wouldensurethat theTaxDepartment          Department receivesthepayment onor beforethetaxduedate.
receivespayment onor beforethetaxduedatefor thetypeof           Inorder tobeontime, youmust initiateyour transactionby:
payment youchoose.
                                                                • ACHdebit – Nolater thansevenbusinessdaysfollowingthe
Youmay select from thefollowingpayment optionstomeet your         payroll dateyouarereporting(by5:59P.M., easterntime)
PrompTaxobligations:                                            • ACHcredit – Nolater thansevenbusinessdaysfollowingthe
ACHdebit – Thispayment optionisavailableto mandated               payroll dateyouarereporting
PrompTaxfilers only. This istheoptionmost commonly selected
by taxpayers, as it allowsthegreatest advantages andflexibility.

                                                                                                     www.tax.ny.gov

TR-370-N (1/16) Page2 of 2

• Fedwire– Nolater thaneight businessdaysfollowingthe          Penaltyforfailuretoenroll
  payroll dateyouarereporting
                                                               If youareamandatoryparticipant and:
• Certifiedcheck– Must bepostmarkednolater thansix
  businessdaysfollowingthepayroll dateyouarereporting(or       • youfail toenroll within20days of thepostmark dateof your
  twobusiness days prior totheapplicableduedate)                 Notificationof RequiredParticipation, or
                                                               • youchallengeyour selectionfor mandatory participation, it is
Holidays                                                         not sustained, andyoufail toenroll within10daysof
                                                                 notification,
NewYork StateTaxLawpermitsyoutofileonthenext business
day whentheactual duedatefallsonaSaturday, Sunday, or          wewill assessa$5,000penaltyagainst you, plus $500for each
legal holiday.                                                 additional monthor part of amonththat youfail toenroll.
                                                               Questions?
Exemptionfrommandatoryparticipation
                                                               • Visit our website
If youbelievethat youshouldbeexempt from theprogram, you
must completeandsubmit Form TR-371, PrompTaxWithholding        • Call thePrompTaxCustomer ServiceCenter at
TaxStatement of ExemptionfromMandatory Participation, and        (518) 457-2332
attachsupportingdocumentationincludingcopies of
Form NYS-45, as filedfor all four quartersof thepreviousyear to
document withholdingof less than$100,000. Mail thisinformation
within20daysof thepostmarkdateof the Notificationof Required
Participation, to:
             NYSTAXDEPARTMENT
             PROMPTAXWITHHOLDINGTAX
             WAHARRIMANCAMPUS
             ALBANYNY12227-0865
Youwill receivetheTaxDepartment'sdeterminationwithin
14days followingreceipt of your Form TR-371. Youmayalso
request aconferencewiththeBureauof Conciliationand
MediationServices bycompletingForm CMS-1, Request for
ConciliationConference, andmailingit tothefollowingaddress:
             NYSTAXDEPARTMENT
             BCMS
             WAHARRIMANCAMPUS
             ALBANYNY12227-0918
SeePublication55, DesignatedPrivateDeliveryServices, if not
usingU.S. Mail.
Youmay alsofilechallengestoyour selectionfor mandatory
participationdirectly withtheDivisionof TaxAppeals. Accessthe
Divisionof TaxAppeals'websiteat www.dta.ny.gov, toobtain
copies of Form TA-10, Petition.
If theTaxDepartment determines youarenot eligiblefor
exemptiononthebasisof your previous year's taxliability, or if
your challengetotheselectionfor mandatoryparticipationis not
sustained, you must enroll within10daysof thenotification.
Healthcareproviders asdescribedinPublicHealthLaw
Article28or Article36, or intheMental HygieneLawArticle16or
Article31, areexempt from participationintheprogram. To
request exemptionfrom theprogram, completeForm TR-371,
andsubmit withacopy of your operatingcertificatetodocument
healthcareexempt status. Form TR-371is availableonour
website.

                                                                                                     www.tax.ny.gov