Failure to provide complete and correct quarterly employee withholding reconciliation information

If an employer fails to provide complete and correct quarterly wage and withholding information relating to individual employees in boxes g, h, i, and j of Form NYS-45, Part C, Employee wage and withholding information , the employer may be subject to a penalty of $100 multiplied by the number of employees for whom such information is incomplete or incorrect. If the number of employees cannot be determined from the form, the Tax Department may estimate the number of employees/payees using any information in its possession. The maximum penalty that may be imposed for this failure is $20,000 per calendar quarter [Tax Law § 685(v)(3)].