Failure to provide complete and correct quarterly withholding information unrelated to individual employees

If an employer fails to provide complete and correct quarterly withholding information on Form NYS-45, Part B, Withholding tax (WT) information , the employer may be subject to a penalty of 5% (0.05) of the quarterly withholding tax liability required to be shown in Part B of Form NYS-45. If the withholding tax liability cannot be determined, the Tax Department may estimate the withholding tax liability for purposes of computing this penalty using any information in its possession. The maximum penalty that may be imposed for this failure is $10,000 for any one calendar quarter [Tax Law § 685(v)(4)].

Complete and correct information provided within 30 days of notification – If the employer submits the complete and correct quarterly withholding information, which was not previously reported in Part B of Form NYS-45, within 30 days after being notified by the Tax Department by certified mail, the penalty imposed for failure to provide complete and correct quarterly withholding information unrelated to individual employees will be abated.