N.Y. Labor Law § 575-a: Penalties relating to wage information

§ 575-a. Penalties relating to wage information. In the case of a

failure by an employer to provide complete and correct wage reporting

information on a quarterly combined withholding, wage reporting and

unemployment insurance return required by paragraph four of subsection

(a) of section six hundred seventy-four of the tax law, such employer

shall, unless it is shown to the commissioner's satisfaction that there

was good cause for such failure to comply, be liable as provided for in

subdivisions one and two of this section.

1. When the non-compliance is discovered through an examination of an

employer's records, the employer shall be liable for a penalty in the

following amount for each employee who is not included in the return or

for whom the required information is not reported accurately:

(a) for the first failure for any calendar quarter in any eight

consecutive calendar quarters, one dollar for each employee, not to

exceed one thousand dollars;

(b) for the second failure for any calendar quarter in any eight

consecutive calendar quarters, five dollars for each employee, not to

exceed two thousand dollars;

(c) for any subsequent failure in any calendar quarter in any eight

consecutive calendar quarters, twenty-five dollars for each employee,

not to exceed five thousand dollars.

2. In those instances where a failure to comply is discovered in

relation to a specific claimant's claim for benefits, the penalty shall

be twenty-five dollars for each such occurrence.

3. If such employer provides complete and correct wage reporting

information within thirty days after the department sends notice of such

failure to the employer, then the penalty provided for by subdivision

one of this section shall be abated.

4. The penalties imposed and collected pursuant to this section shall

be credited to the special fund established pursuant to section five

hundred fifty-two of this article.