Tax Commission, Auditing

Section R865-9I-17

Time for Withholding Tax Returns and Payment of Withholding Taxes Pursuant to Utah Code Ann. Sections 59-10-406 and 59-10-407

Notice of Proposed Rule

(Amendment)

DAR File No.: 33113
Filed: 10/29/2009 04:10:42 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment updates the rule to be in compliance with H.B. 71 from the 2009 General Session, and modifies which employers may file an annual withholding tax return with the commission. (DAR NOTE: H.B. 71 (2009) is found at Chapter 33, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

The amendment provides, in accordance with H.B. 71, that required payments made on a monthly basis are prepayments of the quarterly return; modifies the criteria for employers to file an annual withholding return with the commission so that the employers who file annual federal withholding returns will file annual state withholding returns.

State statutory or constitutional authorization for this rule:

• Section 59-10-406
• Section 59-10-407

Anticipated cost or savings to:

the state budget:

None--There is a small potential that an employer that was able to file annually under the old section will no longer be able to under the new section.

local governments:

None--State income taxes do not impact local governments.

small businesses:

None--There is a small potential that an employer that was able to file annually under the old section will no longer be able to under the new section.

persons other than small businesses, businesses, or local governmental entities:

None--These businesses did not qualify to file annually before the amendment and do not qualify after the amendment.

Compliance costs for affected persons:

None--There may be a small number of employers who will no longer be able to file state withholding on an annual basis, but would be required to file quarterly.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is the potential that some businesses that were able to file withholding annually under the old section, will need to file withholding quarterly under the new section.

D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Pam Hendrickson at the above address, by phone at 801-297-3907, by FAX at 801-297-3901, or by Internet E-mail at pamh@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2009

This rule may become effective on:

12/22/2009

Authorized by:

Pam Hendrickson, Commission Chair

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

R865-9I-17. Time for Filing Withholding Tax Returns and Payment of Withholding Taxes Pursuant to Utah Code Ann. Sections 59-10-406 and 59-10-407.

[A.](1) This rule provides exceptions to the statutory requirement that an employer shall file withholding tax returns and pay withholding taxes quarterly.

[B.](2) An employer may [elect to] file withholding tax returns and pay withholding taxes on an annual basis for a calendar year in which the employer files:

[1.](a) [files] a federal Schedule H; or

[2. withholds less than $1,000] (b) a Form 944, Employer's ANNUAL Federal Tax Return, with the Internal Revenue Service.

[C.](3) The annual withholding return and payment under [B.] Subsection (2) are due by January 31 of the year succeeding the year for which the payment and return apply.

[D.](4) An employer withholding an average of $1,000 or more per month shall [file withholding tax returns and pay] prepay withholding taxes on a monthly basis[.

E. The monthly withholding return and payment under D. are due as]in the manner prescribed in Section 59-10-407.

 

KEY: historic preservation, income tax, tax returns, enterprise zones

Date of Enactment or Last Substantive Amendment: [August 18, 2008]2009

Notice of Continuation: March 20, 2007

Authorizing, and Implemented or Interpreted Law: 59-10-406 through 59-10-408