Department of Taxation and Finance

Maintaining Employer Withholding Tax Accounts (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. In our prior audit report 96-S-43, we examined the procedures used by the Department to maintain employer accounts for withheld income taxes. We found that the number of account adjustments made by the Department could be reduced, employer protests could be better documented, and refunds of overpaid taxes could be better controlled. In our follow-up review, we found that four of our prior recommendations have been implemented, but additional actions are needed to implement four other recommendations.

For a complete copy of Report 98-F-55 click here.
For a copy of the 90-day response click here.