This isn't really correct. The City withholds the tax for the portion of the year you are a resident if you move mid-year. Once you notify them of the new, non-resident address they withhold what's called NYC waiver to pay the 1127 amount. I get a W-2 and what's called a 1127.2 wage and tax statement that has abox for both the local tax withheld while I was a resident of the City and a box for the 1127 amount withheld for the time after I moved out of the City (i.e. when I was a non-resident but still employed by the City).
