New York States

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New York States EMPIRE ZONE PROGRAM Business A
nnual Reports

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Empire Zone Program Business Annual Report ?
As required by Law, all empire zone certified
businesses must submit a Business Annual Report
(BAR) each year. ? BAR forms will be sent to ea
ch certified business by their respective zone
coordinator each year (in April).
? BAR forms will be pre-filled with contact in
formation related to each certified business.
? Businesses certified in more than one zone m
ust submit a separate BAR form for each zone.

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Empire Zone Program Business Annual Report Inc
ludes the following Sections A. Business Certif
ication Information. B. Employment Data. C. Ca
pital Investments. D. Use of Tax Credits. E. V
oluntary Decertification ONLY. F. Signature.
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• Empire Zone Program
• Section A BUSINESS CERTIFICATION INFORMATION
• Business should review data of pre-filled fields
  and update if necessary.
  
• ? If a business changes its FEIN
• It must be decertified by submitting a BAR form -
  the zone coordinator will check the X-CO box
  for decertification, and
  
• The new entity must reapply using the EZ-1 for
  zone certification.
  
• ? If a business changes its name or address
  within the Zone, they must complete an EZ-4 in
  addition to submitting a BAR form.
  
• ? If a business moves out of the zone, it must
  submit a BAR form and voluntarily decertify.
  
• ? Note any other changes, such as contact
  information.
  
• ? Circle NO if there are no changes.

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Empire Zone Program Section B EMPLOYMENT DATA
Provide FT, PT, FTE employment data for the re
porting year. Please review instructions on how
to calculate employment. Full Time Numb
er of employees working at least 35 hrs per wk
Part Time Number of employees working
less than 35 hrs per wk FTE (Full Time Equ
ivalent) Any combination of two or more part
time employees whose combined hours per week
equal 35. QUESTIONS ON CALCULATING FTE JOBS
SHOULD BE REFERRED TO NYS DEPT OF TAX FINANCE
AT 1-888-372-0020
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Empire Zone Program Section B EXAMPLES OF FTE C
ALCULATION Company XYZ has 10 employees, of which
5 work at least 35 hours per week - the
remaining 5 are part-time workers 3 work 15
hours per week 1 works 20 hours per week and 1
works 10 hours per week. Full-Time 5 Part-T
ime 5 FTE (Full Time Equivalent) 2 FTE ca
lculation Combine 2 workers with 15 hours per w
eek plus 1 worker with 10 hours per week 40
hours per week 1 FTE (balance over 35 is not
carried forward or added to another FTE).
Combine 1 worker with 20 hours per week with 1
worker with 15 hours per week 35 hours per week
1 FTE.
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Empire Zone Program SECTION B EMPLOYMENT DATA
? NET NEW JOBS CREATED IN THE ZONE DURING
REPORTING YEAR - Calculate as follows
Jobs created during reporting year less jobs l
ost during report year. ? The answer may be a
negative number. Ex. 10 jobs created
but 15 were lost -5.
? Do not include jobs created at other
facilities or existing jobs that were par
t of a business acquisition or merger.
? AVERAGE STARTING HOURLY WAGE Provide the a
verage hourly wage for new jobs created in this
zone during the reporting year. Include all new
jobs created not the net new jobs. In the
example above, you would provide average hourly
wage for 10 jobs created.
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• Empire Zone Program
• SECTION B EMPLOYMENT DATA
• REPORT TOTAL OF FT AND PT COVERED EMPLOYEES
  FOR EACH QUARTER OF REPORTING YEAR AS SHOWN ON
  BUSINESS NYS 45 FILED WITH DOL.
  
• ? Enter the information as it appears on the
  NYS-45 filed with DOL. (required by Law)
  
• ? This data may vary greatly from the answers to
  previous questions about employment.
  
• ? Will include all NYS employees not just for
  this zone location.
  

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• Empire Zone Program
• SECTION B EMPLOYMENT DATA
• GROSS ANNUAL WAGES AND BENEFITS
• Provide the gross annual payroll AND BENEFITS
  (excluding executive officers) for all four
  quarters ending on March 31, June 30, Sept. 30,
  and Dec. 31, for
• a. all locations within this zone only and
• b. for all zone locations if there is only
  one, answer will
  
• be same as above and
• c. for all NYS locations.
• Note If your company was not in business for
  all four quarters of the taxable year, add the
  payroll amount of actual quarters you were in
  business.

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• Empire Zone Program
• SECTION B EMPLOYMENT DATA
• CALCULATING BENEFITS
•  
• Benefits should include the following four
  categories of non-wage compensation provided to
  employees
  
• ? paid leave (vacations, holidays, sick leave)
• ? supplementary pay (premium pay for overtime and
  work on holidays and weekends, shift
  differentials, non-production bonuses)
  
• ? retirement (defined benefit and defined
  contribution plans) and
  
• ? insurance (life insurance, health benefits,
  short-term disability, and long-term disability
  insurance).
  
• DO NOT INCLUDE THE FOLLOWING LEGALLY REQUIRED
  BENEFITS 
  
• Social Security, Medicare, Federal and State
  unemployment insurance taxes,
  
• and workers compensation

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Empire Zone Program SECTION C CAPITAL
INVESTMENTS

• For each of the categories listed, enter the
  capital investment your business made in this
  zone during the reporting year.
  
• ? Do not include investments made in previous
  years or investments made in another zone or
  anywhere else in NYS.
  
• ? Do not include operating expenses such as
  office supplies, utilities, rent, inventory which
  are not subject to IRS depreciation rules, or any
  other recurring expenses.

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• Empire Zone Program
• SECTION D USE OF TAX CREDITS
• ? Confer with your tax adviser when filling out
  this section.
  
• ? Estimates can be used if actual tax information
  is not available.
  
• ? Refer to the appropriate tax forms when
  entering the amount of each tax credit or refund
  taken. Refer to the BAR form for the tax form
  number that coordinates with each tax credit.
• ? Businesses that have not yet filed taxes for
  the reporting year must provide an estimate for
  each tax credit. The BAR form must be completed
  and submitted by the due date regardless of a tax
  extension.

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Empire Zone Program SECTION D USE OF TAX
CREDITS

• ?Fiscal year taxpayers should use the tax year
  from that includes the most months in the BAR
  year filing.
  
• Example
• Fiscal year October 1st September 30 would
  use the information from their 2006-2007 tax
  return.
  
• Fiscal year June 1st May 31 would use the
  information from 2007-2008 tax return.
  
• ? LLCs, Partnerships, S. Corporations NOTE
• The tax forms and line numbers reference credits
  used by the certified entity. If the amount
  indicated on the line number of the tax form for
  that certified entity is zero AND the entity is
  structured as an LLC, Partnership or S
  Corporation, business must estimate the amount of
  the credit based upon the tax liabilities and tax
  returns of the individual partners, members, or
  shareholders of the parent corporation to whom
  the tax credits ultimately flow.

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Empire Zone Program SECTION D USE OF TAX
CREDITS? Do not include "carry forward" amounts
from previous taxable years. ? Credits
entered should be for all locations within this
zone only. If your business entity is certified
in more than one zone, you must pro-rate the
amount of credit attributable to this zone
location. ? If your business did not take a
certain credit, enter "0".

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Empire Zone Program SECTION E VOLUNTARY
DECERTIFICATION

• Check this box if the business wants to
  voluntarily decertify.
  
• ? Businesses moving out of this zone into another
  zone, must voluntarily decertify in this zone
  and re-apply for certification in the new zone.
  
• ? Businesses that changed their taxpayer ID
  (FEIN) during the reporting year, must be
  decertified and reapply for certification under
  the new FEIN.
• ? Businesses wishing to decertify for any other
  reason, must check this box. Please note, even
  if the business is voluntarily decertifying, the
  BAR for this reporting year must be filled out
  to maintain accurate job and investment records
  in this zone.

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• Empire Zone Program
• SECTION F SIGNATURE
• A completed BAR form must be signed by the
  responsible officer of the business
  
• and notarized.
• REMINDER If A business is Certified in more than
  one zone, a separate BAR must be completed for
  each location and submitted to the respective
  local zone coordinator.

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• Empire Zone Program
• Send the completed BAR form to your zone
  coordinator
  

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• Empire Zone Program
• FAILURE TO COMPLY WITH THIS REPORTING REQUIREMENT
  WILL RESULT IN REVOCATION OF YOUR EMPIRE ZONE
  CERTIFICATION
  
• Please respond in a timely manner so you can
  maintain your certification status and continue
  to enjoy the benefits of the Program
  

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Empire Zone Program QUESTIONS?