UT Moves W-2 Filing Date for 2016

Effective January 1, 2016 all employers must file Form TC-941-R, Utah Annual Withholding Reconciliation, and corresponding Forms W-2 (and 1099 with Utah taxes withheld) electronically by an accelerated due date of January 31 of the year following the calendar year for which the forms pertain with the Utah State Tax Commission.  The change is due to the passage of SB 250, which was signed by the governor on March 30, 2015. Currently, the deadline to file Forms TC-941R and W-2/1099 with the Commission is February 28 if filing on paper or March 31 if filing electronically.  The new due dates apply to the 2015 calendar year filings. However the actual due date will be February 1, 2016 as the 31st is on a Sunday in 2016.

In addition, the penalties for failing to file the forms electronically by the January 31 due date are as follows:

  • $30 per form, not to exceed $75,000 in a calendar year, if the employer files the form more than 14 days after the due date, but no later than 30 days after the due date;
  • $60 per form, not to exceed $200,000 in a calendar year, if the employer files the form more than 30 days after the due date but on or before June 1; or
  • $100 per form, not to exceed $500,000 in a calendar year, if the employer files the form after June 1; or fails to file the form.

UT Expands Electronic Filing in 2016

Recent legislation ( S.B. 250) passed in Utah is expanding the types of forms that must be filed electronically by employers and moving the due dates. The employer’s annual income tax withholding return must be filed electronically by January 31 of the year following that for which the report is made. The old due date was February 28.

In addition, an employer that issues any of the following forms for a taxable year must file the forms with the commission on or before January 31 in an electronic format approved by the commission:

  • a federal Form W-2;

  • a federal Form 1099 filed for purposes of withholding; or

  • a federal form designated by the commission as substantially similar to a federal Form W-2 or federal Form 1099.

Under prior law, an employer that was required to file a federal Form W-2 in an electronic format was also required to file Form W-2 electronically for Utah income tax withholding purposes. However, there was no prior requirement to electronically file Form 1099 or any similar form for state withholding purposes.

WV Imposing Failure to Pay by EFT Penalties

Per a West Virginia State Tax Department website notice, taxpayers required to pay by electronic funds transfer (EFT) will be subject to a 3% civil penalty applied to any payment received on or after March 1, 2015, if the payment is not made by electronic funds transfer (EFT) and a waiver to pay electronically has not been obtained.

SC Implements New EFT Program

My sources are telling me that on March 30, 2015, the South Carolina Department of Revenue (SCDOR) will release a new Electronic Funds Transfer (EFT) Program. Taxpayers are being notified by mail of accounts that are impacted by the change. The mailing includes a welcome letter and a separate PIN Notification letter. The EFT process will continue to require the submission of a D128: Application for Electronic Funds Transfer. With the new program, there will be a new web address and contact phone number. However, current EFT Program users should continue using the current process until March 30, 2015. New Contact Information as of March 30, 2015 Web Address for Tax Payments: www.govone.com/tpp/southcarolina Phone Number for Tax Payments: 1-800-834-7733.

KY Wraps System Now Open

The Kentucky Department of Revenue has announced that their new Withholding Return and Payment System (WRAPS) is now open for business. Employers may now file their withholding tax returns electronically. Forms that may be filed using the WRAPS include Forms K-1, Employer’s Return of Income Tax Withheld, and K-3, Employer’s Return of Income Tax Withheld (Annual Reconciliation). Employers can file their returns, view and/or amend previously filed online returns, request refunds and credits, and use the Enterprise Electronic Payment System to pay withholding tax.

All WV Employers Must File Annual Reconciliation Return

Effective for tax year 2014, all employers, including those that will file the 2014 Forms W-2 electronically with the West Virginia State Tax Department, must also file Form WV/IT-103, Annual Reconciliation of West Virginia Income Tax Withheld. Previously, those employers filing Forms W-2 electronically (required for employers filing 50 or more W-2 forms) were exempted from filing Form WV/IT-103.

MN Updates Form W-4MN

Form W-4MN is the Minnesota equivalent of federal Form W-4. In some situations, employees must complete Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, in addition to federal Form W-4.

Recently, Section 2 of Form W-4MN was updated to include an option to claim exempt from Minnesota withholding on wages for Minnesota National Guard pay or active duty U.S. military pay. Note: This update does not affect civilian wages earned by military members.

When is this form necessary?
Employees must complete Form W-4MN if they:

  • choose to claim fewer Minnesota withholding allowances than for federal purposes;
  • claim more than 10 Minnesota allowances;
  • request additional Minnesota withholding to be deducted each pay period; or
  • claim to be exempt from Minnesota income tax withholding, and meets one of the requirements listed in the instructions for Form W-4MN.

There is no need for the separate Minnesota form if your employee claims 10 or fewer withholding allowances, does not want additional Minnesota tax withheld and chooses the same number of allowances for both state and federal taxes. Use the same number of allowances reported on Form W-4 to determine Minnesota withholding unless your employee claims fewer Minnesota withholding allowances and provides you Form W-4MN (Minnesota allowances cannot exceed federal allowances).

Questions?
Visit the DOR website to view W-4MN information including employer requirements and Top FAQs.