New York Certificate of Exemption from Withholding for START-UP NY Program

Certificate of Exemption from Withholding for START-UP NY Program
Form IT-2104-SNY Certificate of Exemption from Withholding for START-UP NY Program Tax Year 2024
IT-2104-SNY

Department of Taxation and Finance

Certificate of Exemption from
Withholding for START-UP NY Program
New York State 

• 

New York City 

• 

Yonkers

If you are employed by a business approved to participate in the START-UP NY program that operates in a tax-free NY area, you
may be eligible to exclude from New York adjusted gross income (NYAGI) wages earned from this employer. Therefore, you may
choose to claim exemption from withholding on these wages for New York State personal income tax (and New York City and
Yonkers personal income tax, if applicable).
To be eligible, you must:
•	 be employed by an approved business certified to participate in the START-UP NY program;
•	 perform work exclusively at the approved business’s location within the tax-free NY area during the tax year;
•	 be employed in a net new job created by the approved business in the tax-free NY area; and
•  work at least 6 months (or expect to work at least 6 months) of the tax year at the approved business’s location.
See Who qualifies below for additional information on eligibility.
If you do not meet all of the conditions above, stop; you cannot claim exemption from withholding.

Employee information
	First name and middle initial	

Last name	

	Mailing address (number and street or PO Box)		

Social Security number	

	

Apartment number	 Date of birth (mm-dd-yyyy)

	City, village, or post office	

State	

ZIP code

	Filing status: Mark an X in only one box
	A	Single.................................
	B	 Married filing joint return....
	C	 Head of household.............

I certify that the information on this form is correct and that, for this tax year, I expect to qualify (as described above) for exemption from
withholding on my wages from this employer, for New York State income tax purposes.
	Employee’s signature (give the completed form to your employer; keep a copy for your records)	

Date

Employer information: complete this section and retain form for inspection upon request
	Employer name	
	Certificate number

Employee

Employer identification number (EIN)

	–	

–	

–	

/	

–

Instructions

Who qualifies – If you are employed by a business approved
to participate in the START-UP NY program that operates in
a tax-free NY area, you may be eligible to exclude from your
NYAGI the wages earned while working for this business.
Therefore, you may choose not to have income tax withheld on
these wages for New York State personal income tax (and New
York City and Yonkers personal income tax, if applicable). See
our website at www.tax.ny.gov for more information.
Note: During the second five years of the approved business’s
10 consecutive tax year period, the amount of wages included in
your federal adjusted gross income (AGI) that can be excluded
from your NYAGI is limited as follows:
•	 $200,000 of annual wages, if your filing status is single,
•	 $250,000 of annual wages, if your filing status is head of
household, or
•	 $300,000 of annual wages, if your filing status is married filing
joint return.
Any wages included in your federal AGI earned over the
amounts listed above, must have New York State personal
income tax (and New York City and Yorkers personal income
tax, if applicable) withheld by your employer; as you are liable

for income taxes on the excess wages. To make sure the
proper amount of tax is withheld, you should also complete
Form IT-2104, Employee’s Withholding Allowance Certificate,
and give it to your employer.
To be eligible, you must:
•	 be employed by an approved business certified to participate
in the START-UP NY program;
•	 perform work exclusively at the approved business’s location
within the tax-free NY area during the tax year;
•	 be employed in a net new job created by the approved
business in the tax-free NY area (see your employer to
confirm you meet this qualification); and
•	 work at least 6 months (or expect to work at least 6 months)
of the tax year at the approved business’s location.
Note: You are not eligible to exclude these wages from NYAGI
if you do not work for this business at least 6 months of your
tax year. If you claim the exemption from withholding before
you have worked 6 months, and you do not actually work
6 months for this employer, you will be liable for income taxes
on all these wages, and may be subject to a penalty.

IT-2104-SNY (2024) (back)
If you meet the conditions above, or expect to, file
Form IT-2104-SNY with your employer. Otherwise, your
employer must withhold New York State income tax (and New
York City and Yonkers personal income tax, if applicable) from
your wages. Do not send this form to the New York State Tax
Department.
If your employer’s participation in the START-UP NY program
is suspended or terminated during the tax year, and you would
have otherwise qualified to exclude your wages from NYAGI,
you may still claim exemption from withholding for wages paid
by this employer for the rest of the year. However, you cannot
exclude your wages from NYAGI unless you work at least 6
months of the tax year exclusively at the business’s location.
Liability for estimated tax – You may still have a New York
State personal income tax liability (and New York City and
Yonkers personal income tax, if applicable) if you have other
taxable income, and may need to make required estimated tax
payments (see Form IT-2105, Estimated Tax Payment Voucher
for Individuals, for more information).
A penalty of $500 may be imposed for furnishing false
information that decreases your withholding amount.
When to claim exemption from withholding – File this form
with your employer if you meet (or expect to meet) the required
conditions listed above. You must file a new form each year if
you wish to continue to claim the exemption.

Employer
Enter your business name, employer identification number
(EIN), and certificate number as it appears on your certificate of
eligibility. By entering this information, you certify that you are an
approved business certified in the START-UP NY program that is
in compliance with the eligibility requirements with this assigned
certificate number (see our website at www.tax.ny.gov for more
information).
Do not withhold New York State income tax from the wages of
an employee who meets the eligibility requirements and files this
form with you. Keep this form for your records to be provided
upon request for inspection. Do not send it to the New York
State Tax Department. This form must be filed each year by
your employee to claim exemption.
You may not use this form to report newly-hired or re-hired
employees: go to https://www.nynewhire.com to see how to
report new hires.
Note: If your participation in the START-UP NY program is
suspended or terminated during the tax year, an employee who
would otherwise be eligible for exemption from withholding for
New York State personal income tax (and New York City and
Yonkers personal income tax, if applicable) is still eligible for
exemption from withholding for wages paid by you for the rest
of the year (provided it is anticipated the employee will work
at least 6 months during the year exclusively at your business
location).

Privacy notification

New York State Law requires all government agencies that
maintain a system of records to provide notification of the legal
authority for any request for personal information, the principal
purpose(s) for which the information is to be collected, and
where it will be maintained. To view this information, visit our
website, or, if you do not have Internet access, call and request
Publication 54, Privacy Notification. See Need help? for the Web
address and telephone number.

Need help?

For help completing this form, employees may call
(518) 457-5181, and employers may call (518) 485-6654.
Visit our website at www.tax.ny.gov
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