Department of Taxation and Finance
                                     Program Overview                                                      TR-370-N
                                                                                                                               (8/15)
                                     PrompTax Payment Program for
                                     Withholding Tax
  Description of the program                                        ACH debit – This payment option is available to mandated
                                                                    PrompTax filers only. This is the option most commonly selected
  This overview explains the participation and filing               by taxpayers, as it allows the greatest advantages and flexibility.
  requirements of the PrompTax payment program for                  With this option, you register your bank account information with
  withholding tax, and describes payment options.                   us. Then, based upon your business payroll dates, you report
  Chapter 61 of the Laws of 1989 mandates the                       your tax liability and payment information using our Online
  implementation of an Electronic Funds Transfer (EFT)              Services application, or by interactive voice recording (IVR).
  Program for the collection of withholding taxes.                  Online Services has benefits not offered with other payment
Required participation                                              options. For example:
Withholding tax filers must enroll in the program if:               •  You can view your payment history and schedule (warehouse)
                                                                       transactions at your convenience.
• the aggregate tax withheld through Form NYS-45, Quarterly         •  The Tax Department completes the ACH debit transactions if
  Combined Withholding, Wage Reporting, and Unemployment               your payments are initiated on time.
  Insurance Return, filed for the previous tax year is $100,000
  or more.                                                          •  Your account information is confidential and protected by law.
PrompTax benefits                                                   ACH credit – You initiate an ACH credit to New York State's
                                                                    withholding tax bank account and a debit to your own bank
Taxpayers participating in PrompTax will benefit from the           account, for the amount of the withholding tax payment. You
following:                                                          must include the required filing and payment information using
• Your electronic payment transaction replaces your need to file    the National Automated Clearing House (NACHA) Cash
  Form NYS-1, Return of Tax Withheld (your payment serves as        Concentration and Disbursement Plus One addenda record
  your NYS-1 filing). Note: You are still required to file          (CCD+).
  Form NYS-45 quarterly.                                            Fedwire – You initiate a Federal Reserve Banking System credit
• The ability to view and update your account information online    to the Tax Department's withholding tax bank account through
                                                                    your own bank and a debit to your bank account for the amount
• The ability to schedule (warehouse) Automated Clearing
                                                                    of the withholding tax payment. You must include the required
  House (ACH) debit payments in advance
                                                                    filing information for the payroll(s) you are reporting by using the
• Help is available at 1 866 744-1391, from 7 A.M. to 7 P.M.,       Third Party Information Area-Originator to Beneficiary
  Monday through Friday                                             Information (OBI) field.
Enrollment                                                          Certified check – This payment option is available to mandated
                                                                    PrompTax filers only. If you choose this option you will continue
If you receive Form TR-370.1, Notification of Required              to file paper Form NYS-1 and make payments by certified check.
Participation, you must enroll online within 20 days of the         No electronic filing is required if you select this option. To be
postmark date. If you use a payroll service, you may list them as   considered on time, the payment must be postmarked by the
a secondary contact; however, if you wish to allow the Tax          U.S. Postal Service at least two business days prior to the
Department to discuss your confidential account information with    applicable tax due date. You are responsible for ensuring that the
them, they will need proper authorization. In most instances, you   payment is postmarked on time.
may provide the necessary authorization using Form TR-2000,
E-ZRep Tax Information Access and Transaction Authorization.        PrompTax filing and payment due dates
For more complex matters, you may require Form POA-1, Power
                                                                    The tax due date is three business days following the payroll date
of Attorney. See our Web site for more information.
                                                                    you are reporting. In order to be on time, you must initiate your
Once enrolled, you will receive:                                    transaction by:
• confirmation of enrollment, including details of your payment     •  ACH debit – No later than two business days following the
  option and start date, and a                                         payroll date you are reporting (by 5:59 P.M., Eastern Time)
• six-digit access code                                             •  ACH credit – No later than two business days following the
Verify that the information is correct. Pay particular attention to    payroll date you are reporting
the account and routing transit numbers if you select ACH debit     •  Fedwire – No later than three business days after the payroll
as your payment option. If you have questions, contact the             date you are reporting
PrompTax Customer Service Center.                                   •  Certified check – Postmarked no later than one business day
Payment options                                                        following the payroll date you are reporting (or two business
                                                                       days prior to the applicable due date)
You are responsible for initiating the process for any payment
option you choose. Detailed instructions for completing any of the  Higher education and health care providers (go to our
payment options are on our Web site. Check with your bank for       Web site for more information) – The tax due date is eight
the reporting deadline that would ensure that the Tax Department    business days following the payroll date you are reporting. Check
receives payment on or before the tax due date for the type of      with your bank for the reporting deadline that would ensure that
payment you choose.                                                 the Tax Department receives the payment on or before the tax
                                                                    due date. In order to be on time, you must initiate your
You may select from the following payment options to meet your      transaction by:
PrompTax obligations:

                                                                                                           www.tax.ny.gov

TR-370-N (8/15) Page 2 of 2

• ACH debit – No later than seven business days following the       Penalty for failure to enroll
  payroll date you are reporting (by 5:59 P.M., eastern time)
                                                                    If you are a mandatory participant and:
• ACH credit – No later than seven business days following the
  payroll date you are reporting                                    • you fail to enroll within 20 calendar days of the postmark date
                                                                      of your Notification of Required Participation, or
• Fedwire – No later than eight business days following the
  payroll date you are reporting                                    • you challenge your selection for mandatory participation, it is
                                                                      not sustained, and you fail to enroll within 10 calendar days of
• Certified check – Must be postmarked no later than six              notification,
  business days following the payroll date you are reporting (or
  two business days prior to the applicable due date)               we will assess a $5,000 penalty against you, plus $500 for each
                                                                    additional month or part of a month that you fail to enroll.
Holidays                                                            Questions?
New York State Tax Law permits you to file on the next business     • Visit our Web site
day when the actual due date falls on a Saturday, Sunday, or
legal holiday.                                                      • Call the PrompTax Customer Service Center at
                                                                      (518) 457-2332
Exemption from mandatory participation
If you believe that you should be exempt from the program, you
must complete and submit Form TR-371, PrompTax Withholding
Tax Statement of Exemption from Mandatory Participation, and
attach supporting documentation including copies of
Form NYS-45, as filed for all four quarters of the previous year to
document withholding of less than $100,000. Mail this information
within 20 calendar days of the postmark date of the Notification of
Required Participation, to:
         NYS TAX DEPARTMENT
         PROMPTAX WITHHOLDING TAX
         W A HARRIMAN CAMPUS
         ALBANY NY 12227-0865
You will receive the Tax Department's determination within
14 calendar days following receipt of your Form TR-371. You
may also request a conference with the Bureau of Conciliation
and Mediation Services by completing Form CMS-1, Request for
Conciliation Conference, and mailing it to the following address:
         NYS TAX DEPARTMENT
         BCMS
         W A HARRIMAN CAMPUS
         ALBANY NY 12227-0918
See Publication 55, Designated Private Delivery Services, if not
using U.S. Mail.
You may also file challenges to your selection for mandatory
participation directly with the Division of Tax Appeals. Access the
Division of Tax Appeals' Web site at www.dta.ny.gov, to obtain
copies of Form TA-10, Petition.
If the Tax Department determines you are not eligible for
exemption on the basis of your previous year's tax liability, or if
your challenge to the selection for mandatory participation is not
sustained, you must enroll within 10 days of the notification.
Health care providers as described in Public Health Law
Article 28 or Article 36, or in the Mental Hygiene Law Article 16 or
Article 31, are exempt from participation in the program. To
request exemption from the program, complete Form TR-371,
and submit with a copy of your operating certificate to document
health care exempt status. Form TR-371 is available on our Web
site.

                                                                                                           www.tax.ny.gov