New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 5 - Withholding of New York State Personal Income Tax › Part 174 - New York State Employer's Returns And Payment Of Withheld New York State Personal Income Taxes › Section 174.3 - Correcting mistakes

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Correcting mistakes in payments.
(1)
					 Underpayments by employers. Where an employer has deducted and withheld the
					 correct amount of New York State personal income tax from the employee but has
					 made an underpayment of such withheld tax during a calendar quarter, and such
					 employer discovers the underpayment prior to filing such employer's quarterly
					 combined withholding and wage reporting return for the calendar quarter, such
					 employer must correct the underpayment by making an additional payment with an
					 additional New York State employer's return of tax withheld (form WT-1) during
					 the calendar quarter. For interest on underpayments and additions to tax and
					 civil penalties, see sections 684 and
					 685  of the Tax Law.
Example:Employer A, in accordance with the provisions of
						section 674 (a)(1)  of the Tax Law
						and section
						174.1(b)(1) 
						of this Article, is remitting withheld New York State personal income tax after
						making a payroll in the first calendar quarter of a calendar year. On A' s New
						York State employer's return of tax withheld (form WT-1) A indicates an amount
						deducted and withheld of $800 and also indicates an amount remitted of $800. In
						actuality, A mistakenly submits a payment of $700. A discovers the error prior
						to the end of the calendar quarter, and should correct such error by submitting
						an additional employer's return of tax withheld on form WT-1 with a payment of
						$100 prior to the end of such calendar quarter. Interest will be charged and
						penalty may be imposed on the $100 underpayment from the due date of the
						original employer's return of tax withheld and payment to the date such $100 is
						paid.
(2) Overpayments by
					 employers.
(i) Mistake discovered prior to
					 filing quarterly combined return for the calendar quarter. Where an employer
					 has deducted and withheld the correct amount of New York State personal income
					 tax from the employee but has made an overpayment of such withheld tax and such
					 employer discovers the overpayment prior to filing such employer's quarterly
					 combined withholding and wage reporting return for the calendar quarter, such
					 employer should make an adjustment by an offset in a subsequent New York State
					 employer's return of tax withheld (form WT-1) being filed in the same calendar
					 quarter. Where the employer does not correct the overpayment by offset, then
					 the employer must show such overpayment on Part A of such quarterly combined
					 return for such quarter and attach an explanation of the computation of the
					 overpayment. Such employer may elect on such Part A of the quarterly combined
					 return to have such overpayment refunded or credited to a subsequent quarter;
					 provided, however, that a seasonal employer, referred to in section
					 174.2(a)(2) 
					 of this Part, may only have such overpayment refunded.
(ii) Mistake discovered in a subsequent
					 calendar quarter. Where an employer has deducted and withheld the correct
					 amount of New York State personal income tax from the employee but has made an
					 overpayment of such withheld tax and such employer discovers the overpayment
					 prior to filing such employer's last quarterly combined withholding and wage
					 reporting return for the same calendar year, such employer must file an amended
					 quarterly combined withholding and wage reporting return for the quarter in
					 which the overpayment occurred and attach thereto an explanation of the
					 computation of the overpayment. Such overpayment may only be refunded; the
					 employer may not elect to credit such overpayment to a subsequent
					 quarter.