HB 22 Summary

• Employers with annual withholding of $240,000 or more (or $20,000 monthly average) must pay withholding taxes based on two bi-weekly periods: the 1st-15th of the month (due by the 20th) and the 16th through month-end (due by the 5th of the following month), replacing the previous monthly payment schedule.

• All employers must continue to file annual withholding returns, with returns due no later than the last day of the second month following the reporting period.

• Employers failing to make required payments or making delinquent payments face the same administrative and judicial enforcement actions as failure to file returns, plus interest at the rate specified in Section 63-3045.

• The state tax commission shall adjust the $240,000 annual and $20,000 monthly threshold amounts starting in 2006 based on cumulative cost-of-living adjustments, with adjustments made in $5,000 increments when thresholds are exceeded.

• The law becomes effective January 1, 2014, for withholding periods beginning on or after that date.