Everyone’s talking about taxes lately. There are tax cuts, tax increases, changes to deductions, and much more. It can be very confusing. But what about the tax changes that specifically affect New York? Here are some of the important tax changes in the New York State Budget, and how they affect your business and your employees.
Sales and Use Tax
If your company imports goods from other states or areas and uses or resells them in New York, you’ll want to be aware of the changes in use tax. A retail sale now includes sale to a limited liability company, partnership, or trustee, for resale to a member, partner, or beneficiary. Depending on how your company operates, this may affect your use tax.
There are also changes for organizations that aren’t residents in New York, but do business there. Non-resident businesses used to be exempt from use tax when bringing goods into New York. Now they have to pay use tax if they’ve been conducting business outside New York for less than six months.
Workforce Training Tax Credit
This can be beneficial both to you and your employees. If you provide training or education to improve your employees’ performance, teach them a new skill or new technology, or provide them with the tools and
knowledge they need to advance in their job, you can deduct the cost of
that training from your taxes.
There are a few changes that are not directly tax-related, but are still important for employers to know. For instance, as of the first of this year, most privately employed people in New York will be allowed 8 weeks of paid family leave. This includes maternity and paternity leave, leave to bond with a newly adopted or foster child, leave to care for loved ones suffering from health issues, and leave to assist loved ones who have a family member on active military duty.
Payment for this leave will be half of their weekly salary, up to $652.96 per week. The good news is, there’s no cost to you as an employer. Rather, the money is deducted from employees’ weekly paycheck, up to $1.63 per week. Still, many employers do choose to supplement this allotted amount with a payment of their own.
Additionally, minimum wage has increased throughout New York State. The amount varies from county to county, but the wage will continue to go up gradually between now and 2021.
These are just a few of the changes in tax law that have been added to the New York State Budget and go into effect this year. Some affect businesses, while others affect individuals. Some result in lower taxes, while others impose new taxes and restrictions. Do your research, talk to a financial expert, and find out how these new tax changes affect you, your business, and your employees.
Talk to your employees as well, and make sure they’re aware of how these changes affect them, both as members of your team and as individuals. Tax law can be a complicated thing, but it’s important for everyone to know their rights and responsibilities under it.