Important Changes to withholding Requirements
Effective January 1, 2016
You as an employer are required to file monthly if:
- You withheld with respect to a municipality $2400 or more in the immediately preceding calendar year, or
- You withheld more than $200 in any one month in the immediately preceding calendar quarter
- The due date is the 15th day of the month following the month withheld
You may file quarterly if:
- You withheld $2399 or less in the immediately preceding calendar year, or
- You withheld $200 or less for each month in the immediately preceding calendar quarter
- The due date is the 15th day of the month following the quarter
You may be required to file semi-monthly if:
- You withheld $12,000 or more in the immediately preceding calendar year with respect of a municipality, or
- You withheld more than $1000 in any month of the immediately preceding calendar quarter
- The due dates are 3 banking days after the 15th day of each month and 3 banking days after the end of each month
The threshold for the required number of days worked within a municipality for tax being withheld has increased from 12 days to 20 days
- If you are considered to be a “small business” which is defined as a business with gross receipts of less than $500,000, you are not required to follow the 20 day rule and are only required to withhold municipal tax for your fixed location municipality
Minimum payment threshold:
- No payment is required by either an individual or an entity if the tax due is less than $10, but a tax return still needs to be filed
- No refunds will be given if the refund is less than $10