ID H0353

Allows employers with annual withholding of $240,000 or more (or average of $20,000 per month) to pay income tax withholding on a semi-monthly basis instead of monthly, with payments due by the 20th of the month for the first period (1st-15th) and by the 5th of the following month for the second period (16th-last day).

Permits employers with only one pay period per month to request approval from the state tax commission to continue monthly payments under the standard requirement.

Requires the state tax commission to adjust the withholding threshold amounts beginning in 2006 based on cost-of-living adjustments, increasing thresholds by $5,000 when cumulative adjustments equal or exceed that amount.

Applies delinquency penalties and interest to employers who fail to make required withholding payments or make payments that do not equal the amount required under this section.

Effective date: January 1, 2017.