Department of Taxation and Finance

Withholding Tax Revenues

State law requires employers to deduct income tax withholding amounts 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.