Department of Taxation and Finance
State law requires employers to deduct income tax
from their employees' wages. Most of these amounts are sent
directly to a bank, but some
amounts are sent to the Department of Taxation and Finance. We
audited the withholding tax
collection process during the two years ended March 31, 1996. We
found that the $36.1
billion received by the bank and the Department during this
period was accurately reported by
the Department. We conclude that Department management has taken
adequate steps to
ensure that daily withholding tax collections are properly
received, documented and deposited.
However, certain internal controls need to be improved at the
bank and the Department to
better protect tax collections against loss or misuse.
For a complete copy of 96-S-9 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.