The Utah State Tax Commission (STC) has issued the 2023 Withholding Tax Guide [STC, Publication 14, rev. 8-22]. It has been updated to reflect that Utah is establishing a 20-day threshold for nonresident income tax withholding.
For tax years beginning on or after January 1, 2023, employers will not be required to withhold Utah income tax from nonresident employee wages for services performed in the state, unless the nonresident employee spends more than 20 days performing employment duties in Utah. Currently, an exemption to withhold for nonresidents is generally granted to employers doing business in the state for 60 days or less in a calendar year.
Withholding Tables
The percentage method and wage bracket withholding tables are also included in the updated withholding guide and are effective for wages paid on or after May 1, 2022.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.