Utah Withholding Taxes

New Changes Effective January 2018

Since 2015, the Utah Legislature has passed several bills in an effort to combat identity theft and income tax fraud. These bills made changes to annual withholding reporting requirements including:

  • Employers must file annual reconciliations and withholding forms electronically
  • The Tax Commission will match employer withholding information to employees’ individual income tax returns
  • The Tax Commission may only issue income tax refunds before March 1 if both the employer and employee have filed all required returns and forms

In continuing this effort, the Utah Legislature passed Senate Bill 249 earlier this year. This bill requires employers and mineral producers to file ALL withholding and mineral production returns electronically starting January 1, 2018.

Due to these requirements, we are:

  • No longer mailing forms and payment coupons
  • Combining the 4th quarter return with the annual return starting with the 2018 filing periods

What to File

Employers and mineral producers will start filing all quarterly returns electronically as follows:

Form Due
1st Quarter 2018 April 30, 2018
2nd Quarter 2018 July 31, 2018
3rd Quarter 2018 October 31, 2018
4th Quarter 2018 and Annual Withholding (combined form) January 31, 2019

Note: Employers must also file all required W-2’s and 1099R’s electronically by January 31, 2019.

How to File

You may file your withholding electronically through:

  1. Taxpayer Access Point (TAP) – Manually enter return information, use the Excel template and import it, or upload fixed-length files at tap.utah.gov.
  2. Withholding Web Service – For filers who submit large volumes of returns and forms. Your developers must create the necessary interface. See Withholding Web Service Developer’s Handbook.

For More Information

We will email Utah employers and mineral producers with detailed filing instructions in the next few months. Watch this page for updates as well.

General Information

Withholding tax is money an employer withholds from an individual’s paycheck and sends to the Tax Commission as a pre-payment toward that individual’s income tax liability. The following entities must withhold:

Because withholding tax is a trust fund tax, an employer must keep the withheld money safe until sending it to the Tax Commission. Individuals claim their withholdings on their Utah income tax returns. Organizations not taxed as individuals, corporations, partnerships, admitted insurers, or trusts may file form TC-20MC,  Utah Miscellaneous Corporations Income Tax Return, to claim the credit.

Tax Rate Tables

Withholding tax rate tables are found in Publication 14, Employer Withholding Tax Guide. Because Utah has a flat tax rate of 5%, the withholding rates don’t change on an annual basis. Use Publication 14 for complete information on withholding taxes.

Licenses

You can get a withholding tax account (license) by:

There is no fee for a withholding tax account. However, if you have a history of filing or paying taxes late, you may have to post a surety bond.

You need a federal EIN if you are required to report employment taxes or give tax statements to employees. You can request one with the Online EIN Application at the IRS site.

Changing or Closing Your Account

If you stop doing business in Utah, you must submit form TC-69C, Notice of Change for a Business Tax Account. If you do not notify the Tax Commission, you will be assessed an estimated tax, including late penalties and interest.

You can also use this form to notify us of business changes such as contact information. Many changes can also be made online at taxexpress.utah.gov.

Get More Information

See the following references for instructions on filing and paying: