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 QuickPayroll?

QuickPayroll 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.  For more information on how to download and install a Payroll Update, click on the Help menu, select User’s Guide from the drop down list, click on the Index tab, and then type “Updating” in first field.  Help is provided for both downloading and installing Payroll Updates.

Some employees may see a decrease or slight increase in their state withholding.  Since withholding tax calculations do not self adjust in QuickPayroll, 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.