Withholding tax penalties and interest for employers
Changes to withholding tax and wage reporting forms and Web File applications are here!
We’ve updated our website, publications, and other content to reflect these changes. For an overview of what's different, see March 2025 changes to withholding tax and wage reporting.
As an employer, you could be subject to penalties and interest if you fail to:
- File returns using an electronic method
- File returns and make payments on time
- Withhold and remit proper amount due
- Report newly hired and rehired employees
- Keep adequate records
- Use the correct filing format
- File accurate wage reports
- Report accurate and complete withholding reconciliation information
For more information, see
- Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
- Penalty and Interest Calculator
- Current interest rates
Unpaid tax debt programs
- Installment payment agreement
- Voluntary Disclosure and Compliance program - eligible taxpayers who owe unpaid taxes may be able to avoid monetary penalties and possible criminal charges.
- Offer in Compromise program - allows qualifying, financially distressed taxpayers the opportunity to put overwhelming tax liabilities behind them by paying a reasonable amount in compromise.
Resources
- Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
- Withholding tax rate changes
- Withholding publications and guidance
- Withholding forms and instructions
- Jurisdiction/Rate Lookup by Address
- Wage reporting resources for withholding tax filers
- Guidance for employers affected by a W-2 phishing scheme
- Email subscription service
Back to the Withholding tax page
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