In an effort to combat identity theft, the 2015 Utah Legislature changed annual withholding reconciliation requirements for employers.These changes are effective for the 2015 reconciliation, which you will file in 2016.
1. You must file your annual reconciliation electronically.
2.The reconciliation is due January 31. It includes:
Form TC-941R, Utah Annual Withholding Reconciliation
Failure to file W-2s and required 1099Rs electronically and accurately by January 31 will subject you to the following penalties:
• $30 per form (not to exceed $75,000 in a calendar year) if you file 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 you file the form more than 30 days after the due date but no later than June 1
• $100 per form (not to exceed $500,000 in a calendar year) if you file the form after June 1
Also, failure to file form TC-941R electronically and accurately by January 31 will subject you to a $50 penalty.
Finally, the legislation prevents the Tax Commission from issuing income tax refunds before March 1 unless both the employer and employee have filed all required returns and forms. Your failure to electronically file by January 31 may cause refund delays for your employees.
See Pub 14, Withholding Tax Guide, for withholding filing requirements or Pub 32, Online Filing and Paying of Withholding and Mineral Production Taxes, for electronic filing instructions.
Get Tax Commission publications and more information at tax.utah.gov, or call 801-297-2200 or 1-800-662-4335..