The instructions are correct, however, if you do not see the option "NYC Nonresident Employees Tax (NYC-1127)", review your residency status entries to make sure you have indicated you are a nonresident of NYC. Return to the beginning of the State section of the program and review the residency status.
You will need to go through the New York-specific questions until you get to the screen: Take a look at New York credits and taxes. Then scroll down to "New York City Employment Taxes" and click on Start next to "NYC Nonresident Employees Tax (NYC-1127)"
