Utah Withholding Taxes

New Withholding Tables (Publication 14) Effective May 1, 2018

In 2017, Congress passed the Tax Cuts and Jobs Act, eliminating personal exemptions and increasing the standard deduction for individual income tax. The 2018 Utah Legislature passed HB 293, lowering the state individual income tax rate from 5 percent to 4.95 percent. Both pieces of legislation are effective January 1, 2018.

We have revised the tables in Publication 14, Withholding Tax Guide, to reflect these changes. The tables are effective for pay periods starting May 1, 2018 and later.

Taxpayers may use the new Utah state income tax estimator at incometax.utah.gov/paying/tax-estimator to see how their Utah income tax liability might change in 2018.

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

Starting with January 2018 periods,  employers and mineral producers must file ALL withholding and mineral production returns electronically.

This means:

  • All returns must be filed electronically.
  • Paper forms and payment coupons will no longer be mailed.
  • The annual return is now combined with the 4th quarter return.
  • We have changed the Excel template. Download the new version if you file using this method.
  • There is a new fixed-length file layout for the new returns.

All forms and instructions have been updated with these changes. Employers will now use form TC-941E for their quarterly returns and mineral producers will use form TC-941M. Forms TC-941 and TC-941R are only for 2017 periods and earlier.

What to File

Employers use TC-941E and mineral producers use TC-941M to file 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.

Fixed-Length Filers

Since fixed-length files are handled differently, please follow the instructions for the following option that applies. If you:

  • File with a fixed-length file upload, please see Withholding and Mineral Production Taxes File Layouts for the new layouts.
  • Have developed an in-house process to create a fixed-length file for returns, contact your IT department.
  • Use a third-party product that creates a fixed-length file, contact the vendor to verify they have updated their product.

For More Information

Check your email for detailed filing instructions or review Publication 14, Employer Withholding Tax Guide. We will continue to update this page as well.