Utah employers subject to new electronic filing requirement

The Utah State Tax Commission notes that the 2015 Legislature passed a law (S.B. 250) requiring all employers to electronically file their state annual withholding reconciliations, including W-2 and 1099 forms, by January 31 of each year. This will be a significant change for about 60,000 businesses. Of the more than 80,000 Utah employers, only about 25% filed withholding documents electronically in 2015. The new law also prohibits the commission from issuing income tax refunds before March 1, unless both the employer and the employee have filed all required returns and forms. The commission has sent notices of the new law to all businesses and will be sending additional information in November. The agency is also working with business organizations and other state agencies to notify employers. In addition, detailed information on the new law and how to comply is found on the commission’s website at http://tax.utah.gov/training. (News Release, Utah State Tax Commission, October 22, 2015.)

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