I received an update recently from the Colorado Department of Revenue on a blog post they did on January 6th concerning paystubs and Forms W-2. Now in my payroll departments I have always stated emphatically in my year end memo that you can not interchange the two forms and you cannot submit your taxes using the paystub. But the problem seems to be that some tax preparation services are advertising “Bring us your pay stubs and we’ll file your tax return.” So it seems that payroll departments need to gently remind their customers that you have to wait until the W-2s are released by payroll before you can file either on paper or electronically.
Well it now starts that time of year again…updates by the score. And of course the first one is the one we all wait for. The social security or OASDI taxable wage base. As you may have seen in the news the Consumer Price Index did not show an increase this year. So there will be no increase in social security benefits. But that also reflects on the social security taxable wage base. So the 2016 wage base will be $118,500. The same as it is this year. For more information check out the SSA website.
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Effective January 1, 2016 all employers must file Form TC-941-R, Utah Annual Withholding Reconciliation, and corresponding Forms W-2 (and 1099 with Utah taxes withheld) electronically by an accelerated due date of January 31 of the year following the calendar year for which the forms pertain with the Utah State Tax Commission. The change is due to the passage of SB 250, which was signed by the governor on March 30, 2015. Currently, the deadline to file Forms TC-941R and W-2/1099 with the Commission is February 28 if filing on paper or March 31 if filing electronically. The new due dates apply to the 2015 calendar year filings. However the actual due date will be February 1, 2016 as the 31st is on a Sunday in 2016.
In addition, the penalties for failing to file the forms electronically by the January 31 due date are as follows:
- $30 per form, not to exceed $75,000 in a calendar year, if the employer files the form more than 14 days after the due date, but no later than 30 days after the due date;
- $60 per form, not to exceed $200,000 in a calendar year, if the employer files the form more than 30 days after the due date but on or before June 1; or
- $100 per form, not to exceed $500,000 in a calendar year, if the employer files the form after June 1; or fails to file the form.