Withholding Tax Electronic Funds Transfer
ACH Credit Method
Utah State Tax Commission Electronic Funds Transfer Unit 210 North 1950 West Salt Lake City, Utah 84134-3777 Phone: (801) 297-7626 Fax: (801) 297-7698 www.tax.utah.gov
If you need an accommodation under the Americans with Disabilities Act, contact the Tax Commission at (801) 297-3811, or TDD (801) 297-2020. Please allow three working days for a response.
Electronic Funds Transfer (EFT) is a method of electronically transmitting tax return information and payments to the Tax Commission in lieu of paper-based documents. EFT is less costly than manual check processing, and is quick and convenient. It also allows the state to better manage incoming revenue. Electronic transmission of these documents is considered legal and enforceable. This publication explains how to remit withholding tax payments using the ACH Credit method.
Do not submit paper withholding tax return coupons when withholding tax payments are remitted electronically. The only time a paper return should be submitted is when there is a problem and the tax payment cannot be remitted electronically. An amended return, TC-96A, may not be filed electronically. Once the original EFT has been completed for a period, all other adjustments to that period must be made using paper coupons. EFT may not be used to file the TC-96R, Utah Annual Withholding Reconciliation, or the TC-96RC, Utah Annual Withholding Corrected Reconciliation. Annual reconciliation reporting is available using magnetic media and electronically through the Tax Commission website. Specifications and procedures are contained in Pub. 32, Instructions for Annual Reporting of W-2, 1099R, and TC675R Information. The annual reconciliation is due by the last day of February following the end of the tax year.
NOTE: This method is NOT processed on the Internet
Electronic transmission of Utah withholding information and payments is voluntary. However, you must apply to the Utah State Tax Commission in advance of participating in electronic remittance of state withholding tax. To request approval, complete and submit form TC-86, Application to Remit Utah State Withholding Tax Payments, included in this publication. A letter will be sent back to you to confirm acceptance into the EFT program.
The taxpayer must authorize his bank to originate an Automated Clearing House (ACH) with a CCD + Addendum and transfer of the withholding tax amount due by the payment due date. The bank may require a specific Settlement Date the money is actually paid to the Tax Commission. The electronically remitted tax payment will be deducted from the taxpayer's account and credited to the Tax Commission's withholding tax account on the Settlement Date specified by the taxpayer in the transfer authorization. Tax payments remitted by EFT must conform to the addendum transfer format and content requirements included in this publication. By correctly following the addendum, the taxpayer's withholding account can be credited properly. A valid monthly filing or quarterly filing Tax Period End Date must be used when coding field 7 of the addendum transfer format and content requirements. This will ensure payments are credited properly. Using the transmission date or the due date in this field will delay processing. Valid Tax Period End Dates are shown later in this publication.
Rules and Guidelines
All statutes and rules concerning Utah State withholding taxes for reporting periods and payment deadlines remain in effect and are not changed by these electronic funds transfer procedures. Tax payments remitted electronically must arrive in the Tax Commission withholding bank account no later than the day the tax is due to avoid penalties. The banking industry's Automated Clearing House (ACH) system requires a minimum of one business day to operate, so EFT payments must be initiated at least one working day before the tax due date. The authorized transfer will then be credited to the Tax Commission the next working day. Check with your bank for processing procedures.
Filing the First EFT
A pre-note (test transmission) is not required. However, if the taxpayer elects to send an EFT pre-note before the first payment is made, a zero amount should be sent. Sending an amount other than zero on a pre-note will create errors in the taxpayer's withholding account. The taxpayer should notify the Tax Commission in advance of the pre-note by calling (801) 297-7626 or 1-800-662-4335 ext. 7626. It is recommended the taxpayer notify the Tax Commission in advance of the first EFT payment also. This will enable the Tax Commission to establish a preliminary payment record and track the EFT in case of a problem. This step is recommended only for the first time an electronic remittance is sent.
2006 Monthly EFT End Dates
Month January February March April May June July August September October November December End Date on the Addendum 060131 060228 060331 060430 060531 060630 060731 060831 060930 061031 061130 061231 Due Date Feb. 28, 2006 March 31, 2006 May 1, 2006 May 31, 2006 June 30, 2006 July 31, 2006 Aug. 31, 2006 Oct. 2, 2006 Oct. 31, 2006 Nov. 30, 2006 Jan. 2, 2007 Jan. 31, 2007
Addendum Transfer Format and Content
The EFT must be made payable as follows: Credit To: Bank: Routing No: Account No: Utah State Tax Commission Wells Fargo Bank 1240-00012 51-08007-25
2006 Quarterly EFT End Dates
Quarter Jan. March April June July Sept. Oct. Dec. End Date on the Addendum 060331 060630 060930 061231 Due Date May 1, 2006 July 31, 2006 Oct. 31, 2006 Jan. 31, 2007
Addendum Record Format and Content
The transfer must conform to the Tax Payment (TXP) Banking Convention. The addendum record must be completed to include the fields as shown in this publication.
1 2 3 4 5 6 7 8 9 10 11
3 1 6 1 4 1 6 1 1 1 2-10
TXP * ANNNNN * 0110 * Segment Identifier Field Separator Withholding account number (e.g. Y12345) Field Separator Tax Type Code Field Separator
YYMMDD Tax period end date (e.g. March 31, 2006 = 060331) * T * Field Separator Amount Type Code Field Separator
Electronic Funds Transfer Unit Utah State Tax Commission 210 North 1950 West Salt Lake City, UT 84134-3777 (801) 297-7626 1-800-662-4335, ext. 7626 [email protected] Forms Hotline: (801) 297-6700 Forms Online: tax.utah.gov/forms
$$$$$$$¢¢ Tax payment amount. Dollars and cents only. No decimals, commas, or leading zeros. Do not zero fill. ***** AAAAAA Field Separator Taxpayer ID verification. First six characters of the taxpayer's name. No common words, such as "the." Segment Terminator
Variable field provided by the taxpayer