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Important Changes to Withholding Requirements

January 18, 2016

EFFECTIVE JANUARY 1, 2016

Please be advised that municipal income tax withholding due dates and related thresholds are changing as noted below. These changes are the result of the enactment of House Bill 5 by the State legislature. In addition to these changes to withholding tax filing requirements, H.B. 5 also includes changes to the occasional entrant provisions, penalty and interest rates, annual tax return and estimated tax payment due dates and thresholds, and other items.


New Withholding Due Dates and Thresholds

Monthly filing and payment is required if an employer has withheld with respect to a municipality more than $2,399 in the immediately preceding calendar year, or more than $200 in any one month in the immediately preceding calendar quarter. The due date for Monthly filers is the 15th day of the month following the month withheld.

Quarterly filing and payment is required if an employer has withheld with respect to a municipality $2,399 or less in the immediately preceding calendar year, or $200 or less for each month in the immediately preceding calendar quarter. The due date for Quarterly filers is the 15th day of the month following the end of the quarter.

Semi-monthly withholding MAY BE REQUIRED by a municipality if an employer has withheld $12,000 or more in the immediately preceding calendar year with respect to a municipality, or more than $1,000 in any month of the immediately preceding calendar year with respect to that same municipality. The due dates for Semi-monthly filers are 3 banking days after the 15th of the month, and 3 banking days after the end of each month.

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