Employers Must File Soon to Prevent Delays in Employees' Tax Refunds Employers’ Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return is due January 31
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The New York State Department of Taxation and Finance reminded employers to accurately file their withholding taxes ahead of the January 31 deadline. This will help ensure that any refunds owed to their employees won’t be delayed.
Employers must remit the personal income taxes withheld from their employees’ wages, salaries, bonuses, commissions, and other similar income by filing a completed Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, by the end of the month.
“Employees shouldn’t be deprived of receiving the tax refunds they’re due simply because their employer neglects to file an accurate and timely withholding tax return,” said Acting Commissioner Nonie Manion. “To help employers meet this obligation, we’re sharing the most common filing mistakes we see on Form NYS-45.”
Filing deadlines and common errors
For the 4th quarter return, due January 31, businesses must report annual wage and withholding information.
Employers should avoid these common errors to prevent a delay in refunds owed to their employees:
- Reporting an incorrect federal employer identification number (EIN). Be sure to report the correct employer/payer EIN. If any numbers are transposed or incorrect, the return information may not be posted to the appropriate account.
- Failing to report all employees. Include in the annual filing every employee during the year—no matter the duration of their employment or the quarter in which they were employed.
- Reporting 4th quarter wages only. Report the annual total federal gross wages subject to withholding tax, which include wages, salaries, bonuses, commissions, and other similar income. This amount is for the full calendar year, not just the 4th quarter.
- Neglecting to report withholding for all jurisdictions. Report the total New York State, New York City, and Yonkers tax withheld (when applicable).
- Reporting an incorrect total for the annual tax withheld. Verify that the total tax withheld reported on both Forms NYS-1 and NYS-45 for all four quarters reconciles with the grand total for New York State, New York City, and Yonkers tax withheld (when applicable).
Penalties for late filing or failure to file
Employers who fail to file a completed Form NYS-45 by the deadline face financial penalties of up to $10,000. They also risk delaying any tax refunds owed to their employees. That’s because the Tax Department will not issue the refunds until it verifies reported withholding amounts.