Taxation of NYS Healthcare Worker Bonus
In this Cerini Short, Edward McWilliams, CPA, Partner talks about the Taxation of the NYS Healthcare Worker Bonus.
Included as part of the 2022/23 budget for New York State was a provision allowing for Healthcare Worker Bonuses of up to $3,000 per employee. The regulations and program portal were released on August 3, 2022. One of the crucial questions regarding these payments has to do with the taxation of said payments to the recipients, the employees.
The regulations for the program specifically state that these payments are not considered taxable income for New York State personal income tax purposes, which is a clear benefit as recipients will not bear the weight of any tax burdens related to these bonuses. Federal treatment by the IRS isn’t so generous though, since this is a New York State-specific program. This disparity leaves providers with several questions in regard to the taxation of these bonuses and payments to their employees.