New York Employer Compensation Expense Tax (ECET) information

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New York ECET tax information

New York state's Employer Compensation Expense Program (ECEP) has established a new optional tax, the Employer Compensation Expense Tax (ECET), Employers can choose to pay the tax if their employees earn over $40,000.00 a year in New York State.

For details about this optional tax, refer to the Employer Compensation Expense Program (ECEP) web page.

In Accounting CS, the New York ECET tax is marked as wage exempt by default on the Payroll Taxes tab of the Setup > Clients screen. 

Unmark the Wage Exempt checkbox to begin calculating the tax for the client.

New York ECET wage exempt

NY-ECET Worksheet

During payroll tax form processing, use the NY-ECET Reconciliation worksheet to manually enter the details about employees covered by the ECEP. You can then upload it using your New York Department of Taxation and Finance Business Online Services account.

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