The Utah State Tax Commission recently published an updated version of Publication 14, the Utah Withholding Tax Guide. This guide contains information on withholding tax filing information and requirements, along with tax withholding tables to assist employers and businesses with their withholding information reporting obligations.
The principal update to Publication 14 involves the Congressional Tax Cuts and Jobs Act passed in 2017. The Act eliminated personal exemptions and increased the standard deduction for individual income tax: in response, the 2018 Utah legislature passed HB 293 lowering the individual income tax rate from 5% to 4.95% effective January 1, 2018. As a result, Publication 14 contains revised Utah tax tables that reflect these changes, which are effective for pay periods beginning on or after May 1, 2018.
Utah has also updated their policies and requirements relating to electronic filing and annual reconciliations.
- Regarding electronic filing, Utah withholding tax return must be filed electronically using Form TC-941E. Filers may submit this template through the Taxpayer Access Portal located here.
- In related matters, Utah will no longer mail withholding packets of paper returns to employers. Returns must be filed and amended electronically at the Utah TAP portal.
- Regarding annual reconciliations, beginning with tax year 2018, annual reconciliations will be merged with fourth quarter returns or annual returns, depending on the filer’s status.
To review this publication in its entirety, please click here.
About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa