Tax Law, § 674(a)(5), (b)

(a) General power.

The Department of Taxation and Finance may, by notice served upon an employer, require the employer to make a New York State employer's return of tax withheld on form WT-1 or, where applicable, Part A of a quarterly combined withholding and wage reporting return and pay to it the New York State personal income tax deducted and withheld by such employer at any time or from time to time, whenever the Department of Taxation and Finance deems such action necessary for the protection of revenues. The Department of Taxation and Finance may include in such notice a direction requiring the employer to remit such New York State personal income taxes payable to the Department of Taxation and Finance at the Albany office, at a specific district tax office or other office of the New York State Department of Taxation and Finance or as provided in subdivision (b) of this section. The notice provided for in this subdivision will be served personally or by registered or certified mail.

(b) Special deposit in trust.

Whenever any employer fails to collect, truthfully account for, and pay over the New York State personal income tax, or make New York State employer's returns of tax withheld on forms WT-1 or, where applicable, Part A of the quarterly combined withholding and wage reporting returns as required by the Tax Law and this Article, the Department of Taxation and Finance may serve a notice requiring such employer to collect the New York State personal income taxes which become collectible after service of such notice, to deposit such New York State personal income taxes within the time specified in such notice in a bank approved by the Department of Taxation and Finance and to keep the amount of such New York State personal income tax in such account until payment over to the Department of Taxation and Finance. Such notice remains in effect until a notice of cancellation is served by the Department of Taxation and Finance.