New Law Forces Utah Employers to File Tax Information Electronically

The deadline is rapidly approaching for Utah employers to meet new legal requirements to electronically file state income tax documents of employees.

The new law, which helps combat identity theft and income tax fraud, requires all employers to electronically file their annual withholding reconciliations, including W-2 and 1099R forms by Jan. 31.

The law directly impacts about 60,000 of Utah’s 80,000 businesses who previously did not file withholding documents electronically.

The new law prohibits the Tax Commission from issuing income tax refunds before March 1, unless both the employer and the employee have filed all required returns and forms.

“The law protects citizens by checking return accuracy and refund validity,” said Charlie Roberts, Tax Commission spokesperson.

He said the Tax Commission electronically will compare a filer’s income tax return with the employer’s withholding reports.

In the past several months the Utah State Tax Commission has notified all impacted employers by mail, in business workshops, updating its website, training tax practitioners and directly contacting payroll companies, large employers and associations.

“We continue to reach out to all Utah employers to notify them of this major change in the law,” Roberts added.