Department of Taxation and Finance
Withholding Tax Revenues (Follow-Up Review) 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. Most of these amounts are sent directly to a bank, but some amounts are sent to the Department. In our prior audit report 96-S-9, we audited the withholding tax collection process. We found that, while adequate steps had been taken to ensure that daily withholding tax collections were properly received, documented and deposited, certain internal controls needed to be improved at the bank and the Department to better protect tax collections against loss or misuse. In our follow-up review, we found that most of the recommendations contained in our prior audit report have been implemented.
For a complete copy of Report 98-F-24 click here.