The Utah State Tax Commission announced that it has released revised withholding tables apply to wages paid on and after May 1, 2018. Revised Publication 14, Employer Withholding Tax Guide, containing the revised withholding tables, has been posted to the tax commission's website.

Employers are not required to retroactively adjust withholding, but should begin using the revised withholding tables as of May 1, 2018.

The revised tables reflect recently enacted Utah legislation and the changes provided for under the federal Tax Cut and Jobs Act (TCJA). If taxpayers are interested in learning how their Utah income tax liability will change in 2018, the tax commission has created a state income tax estimator on its website.

Tax legislation reduced state income tax rate retroactively

As we recently reported, HB 293 reduces the state income tax rate from 5% to 4.95%, retroactively effective to January 1, 2018.??The bill also reduces the corporate income tax rate from 5% to 4.95%.

Note that there is no supplemental rate of withholding for Utah.

Other changes noted in revised publication

As we reported previously, employers are now required to file quarterly income tax withholding returns electronically using the Utah State Tax Commission's Taxpayer Access Point (TAP). (2017 SB 249.)

According to revised Publication 14, starting with the 2018 tax year, employers will not file a separate annual reconciliation return with Forms W-2. Instead, the reconciliation will be combined with employers' fourth quarter return (for quarterly filers) or the annual return (annual filers). The new electronic form is Form TC-941E, due each year with Forms W-2 on January 31. See the Form TC-941E template instructions.

The commission no longer mails withholding packets (paper withholding returns and payment coupons) to employers at the first of the year. Employers are instructed to file and amend returns electronically. Withholding tax may be paid online or by check. If paying by check, employers should print a payment coupon (TC-941PC).

For more information on Utah withholding taxes, see the commission's website.

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