You are correct. The way how your income is reported on your W2 is a NY state requirement. Part of the reason why is that NY does not assume that if you move out of NY and continue to work for the NY company, that your income is no longer taxable in New York. One situation they will still tax is if you are a telecommuter working from home.
Since you are not a telecommuter, you will report what you see in Box 14 into the allocation screens on the New York return, This way, only that amount will be taxed in New York. But you must enter the W2 as it is reported on the W2 screen (showing the amount in Box 16), and then make the adjustment on the New York return through the nonresident apportionment. You are being given the exact figure, so you will want to enter that amount.
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