S.B. 30 Enrolled

FILING EMPLOYEE TAX INFORMATION
ELECTRONICALLY
2001 GENERAL SESSION
STATE OF UTAH
Sponsor: David H. Steele
This act modifies the Individual Income Tax Act to require employers who file Form W-2
with the Internal Revenue Service in an electronic format to also file Form W-2 in an
electronic format with the State Tax Commission.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-10-406, as last amended by Chapter 287, Laws of Utah 1990
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-10-406 is amended to read:
59-10-406. Collection and payment of tax.
(1) (a) Each employer shall, on or before the last day of April, July, October, and January,
pay to the commission the amount required to be deducted and withheld from wages paid to any
employee during the preceding calendar quarter under this part.
(b) The commission may change the time or period for making reports and payments if:
(i) in its opinion, the tax is in jeopardy; or
(ii) a different time or period will facilitate the collection and payment of the tax by the
employer.
(2) Each employer shall file a return, in a form the commission prescribes, with each
payment of the amount deducted and withheld under this part showing:
(a) the total amount of wages paid to his employees;
(b) the amount of federal income tax deducted and withheld;
(c) the amount of tax under this part deducted and withheld; and
(d) any other information the commission may require.
(3) (a) Each employer shall file an annual return, in a form the commission prescribes,
summarizing:

(i) the total compensation paid;
(ii) the federal income tax deducted and withheld; and
(iii) the state tax deducted and withheld for each employee during the calendar year.
(b) This return shall be filed with the commission on or before February 28 of the year
following that for which the report is made.
(4) (a) Each employer shall also, in accordance with rules prescribed by the commission,
provide each employee from whom state income tax has been withheld with a statement of the
amounts of total compensation paid and the amounts deducted and withheld for that employee during
the preceding calendar year in accordance with this part.
(b) The statement shall be made available to each entitled employee on or before January
31 of the year following that for which the report is made.
(5) (a) The employer is liable to the commission for the payment of the tax required to be
deducted and withheld under this part. The employee is not thereafter liable for the amount of any
such payment, nor is the employer liable to any person or to any employee for the amount of any
such payment.
(b) For the purpose of making penal provisions of this title applicable, any amount deducted
or required to be deducted and remitted to the commission under this part is considered the tax of
the employer and with respect to such amounts he is considered the taxpayer.
(6) Each employer who deducts and withholds any amount under this part shall hold the
amount in trust for the state of Utah for the payment of it to the commission in the manner and at the
time provided for in this part. So long as any delinquency continues, the state of Utah shall have a
lien to secure the payment of any amounts withheld, and not remitted as provided under this section,
upon all of the assets of the employer and all property owned or used by the employer in the conduct
of his business, including stock-in-trade, business fixtures, and equipment. This lien shall be prior
to any lien of any kind, including existing liens for taxes.
(7) As a condition precedent to doing business in Utah, the commission may require an
employer to post with it a corporate bond in an amount reasonably calculated to ensure the payment
to the state of taxes deducted and withheld from wages, but not to exceed $5,000.

- 2 -

(8) To the extent consistent with this section, the commission may use all the provisions of
this chapter relating to records, penalties, interest, deficiencies, redetermination of deficiencies,
overpayments, refunds, assessments, and venue to enforce this section.
(9) For all tax years beginning on or after January 1, 2001, an employer that is required to
file a federal Form W-2 in an electronic format with the Federal Department of the Treasury Internal
Revenue Service shall file each Form W-2 that is required to be filed with the commission in an
electronic format approved by the commission.

- 3 -