D.C. reminds employers on new withholding requirements

The District of Columbia has release Questions and Answers on the new withholding requirements. Beginning January 2017, OTR is eliminating monthly withholding return filing for District of Columbia taxpayers. This will more closely align with the federal withholding process and make tax filing simpler for District businesses/employers. Employers who currently file the Employer/Payer Withholding Tax Monthly Return (FR-900M), will not be required to file monthly withholding tax returns anymore. Instead, employers will be required to file the new Quarterly Return, FR-900Q. However, employers will still be required to make tax payments on a monthly basis, with the due dates being the 20th of the following month, as they are now. There will be an option of bulk filing the FR-900Q via MyTax.DC.gov beginning with the quarterly return due on April 30, 2017 for the months of January, February and March 2017. Beginning January 2017, another key feature will be a new standalone annual (Non-Payroll) Return, FR-900NP. This new form aligns with Federal regulations and IRS Form 945, and employers can file it through MyTax.DC.gov. To report backup or non-wage withholding on non-payroll payments such as pensions, annuities and gambling winnings, use form FR-900NP only. (D.C. Qs& As, https://mytax.dc.gov/FAQ/faq.html, October 2016.)

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