Utah Withholding Tax Change

The Utah State Tax Commission has published a February 2008 revision of Publication 14, Withholding Tax Guide, that contains updated withholding tables.  The updated withholding tables are effective January 1, 2008.

The agency is communicating that using the revised tables will help employers withhold enough from employee paychecks to cover Utah income taxes from wages.  Although some employees may see a decrease or slight increase in their state withholding, the revised tables withhold less than 2007 withholding for the same wages and allowances.

For more information, please refer to Utah Tax Bulletin 2-08 on the agency website - http://www.tax.utah.gov/research/bulletins/tb-02-08.pdf.

Frequently Asked Questions

How do I know if I'm affected?

You may be affected if you currently withhold Utah income taxes from employees and make withholding tax payments in the State of Utah or if you currently have a valid Utah State Tax Commission Account Number.

When will these changes be available in QuickBooks?

QuickBooks Payroll will modify the withholding tax tables within the next Payroll Update, #20808, which will be released in mid-March.

What do I need to do?

You will need to download and install Payroll Update #20808 as soon as it is released so the correct amount of Utah withholding taxes are calculated and withheld from employee paychecks from that point forward.  If you have Automatic Updates turned on and have selected all updates to download automatically, your QuickBooks software will download and install the update for you.  If you do not have Automatic Updates turned on, you can download this payroll update manually.  For more information on how to download and install a Payroll Update, click here.

Some employees may see a decrease or slight increase in their state withholding.  Since withholding tax calculations do not self adjust in QuickBooks, you may want to ask your employee(s) if they want to adjust their withholding tax on future payroll checks.  If the employee(s) chooses to adjust their future withholding tax, they will need to complete a new Form W-4 for state withholding indicating the additional amount they want deducted from each paycheck.

What if I subscribe to the Disk Delivery service?

Disks are scheduled to be sent out in late March.  If you have internet access, you may prefer to download the Payroll Update For more information on how to download and install a Payroll Update, click here.