T O A L L C L I E N T S W I T H P A Y R O L L

I M P O R T A N T T A X L A W C H A N G E ! !

We are writing you this letter to alert you to an

important change in New York State Employment Tax Laws.

Beginning March 1, 1996, when a NEW EMPLOYEE is hired,

a copy of Federal form W-4 must be filed with New York State

within 15 days of the date of employment. Nothing is required

to be filed for existing employees.

The form W-4 must be completely filled in including

your (employer) name, address and Federal ID #. Your Federal

ID # can be found on your payroll tax depository booklet.

As usual, New York will impose a penalty of $50.00

per employee for failure to comply with this new law. We are

enclosing a copy of the announcement from New York State

which contains the full details of this new law. We are also

enclosing a copy of form W-4. Please make photocopies of

this form as you need them.

WE STRONGLY URGE YOU TO FILE THE FORMS BY CERTIFIED

MAIL, RETURN RECEIPT AT THE POST OFFICE, WITH PROOF OF

MAILING. IT IS IMPOSSIBLE TO PROVE YOU FILED A FORM IF NO

CHECK IS PAID WITH THE FORM.

Mail Completed forms to:

New York State Department of Taxation and Finance

New Hire Notification

P.O. Box 15119

Albany, New York 12212-5119