Department of Taxation and Finance

Maintaining Employer Withholding Tax Accounts

Employers in New York State are required to withhold State income taxes from their employees' wages and remit the withheld taxes to the Department of Taxation and Finance. We examined the procedures used by the Department to maintain employer accounts for withheld income taxes. We found that the Department's controls are generally sufficient to ensure that the accounts are properly maintained. However, we identified actions that can be taken to reduce the number of adjustments made to the accounts. We also found that employer protests can be better documented and refunds of overpaid taxes can be better controlled.

For a complete copy of Report 96-S-43 click here.
For a copy of the associated follow-up report click here.