© 2024 American Payroll Institute, Inc.
Due Dates Coming Soon for Filing Annual Reconciliation Returns
All states with a state income tax require employers to file
an annual reconciliation return following the end of the
calendar year, except Illinois, Iowa, Minnesota, New Mexico, and
New York. Generally, a state annual reconciliation return must
show the amount of tax withheld from the wages paid to
employees, the amount of tax deposited, and a reconciliation of
the aggregate of the amounts withheld and paid on the deposit
reports.
The Iowa Department of Revenue (IDOR) no longer
requires employers to submit an annual reconciliation return
(Form VSP 44-007, Iowa Withholding Annual VSP Report)[IDOR,
Electronic Filing of W-2 Wage Statements and 1099 Information
Returns].
The chart below shows the filing deadlines for annual
reconciliation returns for tax year 2023, due in 2024. For the
states with a due date of February 28, that is the actual due
date, not the last day of February (which is the 29th this year).
The state form number is listed after each state name. Note:
Federal legislation requires employers to file federal Forms
W-2/W-3 by January 31 with the Social Security Administration.
State Annual Reconciliation Returns/Forms Due Date
Alabama (A-3), Arizona (A1-R), California (quarterly DE 9), Colorado (DR 1093)1, Connecticut (CT-W3), Delaware
(WTH-REC), District of Columbia (quarterly FR-900Q), Georgia (G-1003), Hawaii (HW-30)1, Idaho (967), Indiana
(WH-3), Kansas (KW-3), Kentucky (K-3), Louisiana (L-3), Maryland (MW508)1, Massachusetts (M-3)1, Mississippi
(89-140)1, Missouri (MO W-3), Montana (MW-3), Nebraska (W-3N), North Carolina (NC-3), North Dakota (307)1,
Ohio (IT 31 &IT 941 using Ohio Business Gateway), Oklahoma (no paper form file using OkTAP), Oregon
(OR-WR 150-206-012), Pennsylvania (REV-1667 AS), Puerto Rico (499 R-3), Rhode Island (RI-W3), South Carolina
(WH-1606), Utah (TC-941R), Vermont (WHT-434), Virginia (VA-6), West Virginia (WV/IT-103), Wisconsin (WT-7)
1-31-24
New Jersey (NJ-W-3M, electronically via Premier Business Services) 2-15-24
Arkansas (AR3MAR), Maine (W-3ME), Michigan (5081, electronically via Michigan Treasury Online) 2-28-24
1 Required only for employers filing paper copies of Forms W-2.
IRS Releases 2023 Form 940 and Schedule A
The IRS released the 2023 Form 940, Employer’s Annual
Federal Unemployment (FUTA) Tax Return Schedule A (Form
940), Multi-State Employer and Credit Reduction Information
and Instructions for Form 940.
Credit reduction states, territory
California and New York, along with the Virgin Islands, did
not pay back their federal loans by the November 10, 2023,
deadline and will lose the full Federal Unemployment Tax Act
(FUTA) credit for 2023 (88 F.R. 83970, 12-1-23 see PAYSTATE
UPDATE, Issue 23, Vol. 25).
For 2023, California and New York are subject to a FUTA
credit reduction of 0.6%, and the Virgin Islands is subject to a
FUTA credit reduction of 3.9%. The Virgin Islands had a credit
reduction in each of the past 12 years (2011-2022).
Connecticut and Illinois, along with California, New York,
and the Virgin Islands, were subject to a FUTA credit reduction
for 2022. Connecticut and Illinois paid off their outstanding
loans, so they are not subject to a credit reduction for 2023.
Form 940, Schedule A reflects reductions
The additional FUTA tax must be deposited by the due
date of the 2023 federal Form 940, which is January 31, 2024.
However, employers that deposited all FUTA tax when it was
due may file Form 940 by February 12, 2024.
The 2023 Schedule A contains the official list of credit
reduction states the credit reduction total from Schedule A is
reported on Form 940.
What’s new
New Form 940 (sp) available in Spanish for tax year 2023.
All employers, including employers in Puerto Rico and the
Virgin Islands, have the option to file the new Form 940 (sp)
and Schedule A (sp) for tax year 2023. The instructions are also
available in Spanish. Form 940-PR is no longer available.
Electronic filing of an amended Form 940. Beginning
sometime in 2024, the IRS said it expects to allow the filing of an
amended Form 940 as part of its Modernized e-File (MeF).
Thirteen Indiana Counties, State Have Tax Rate Changes for 2024
Effective January 1, 2024, the Indiana Department of
Revenue (DOR) has issued a new Departmental Notice No.
1 providing that 13 counties increased their income tax rates
and the state withholding rate is reduced [DOR, Departmental
Notice No. 1, How to Compute Withholding for State and County
Income Tax, eff. 1-1-24 News, 12-15-23 and 12-27-23].
January 8, 2024 Volume 26 Issue 1
Due Dates Coming Soon for Filing Annual Reconciliation Returns
All states with a state income tax require employers to file
an annual reconciliation return following the end of the
calendar year, except Illinois, Iowa, Minnesota, New Mexico, and
New York. Generally, a state annual reconciliation return must
show the amount of tax withheld from the wages paid to
employees, the amount of tax deposited, and a reconciliation of
the aggregate of the amounts withheld and paid on the deposit
reports.
The Iowa Department of Revenue (IDOR) no longer
requires employers to submit an annual reconciliation return
(Form VSP 44-007, Iowa Withholding Annual VSP Report)[IDOR,
Electronic Filing of W-2 Wage Statements and 1099 Information
Returns].
The chart below shows the filing deadlines for annual
reconciliation returns for tax year 2023, due in 2024. For the
states with a due date of February 28, that is the actual due
date, not the last day of February (which is the 29th this year).
The state form number is listed after each state name. Note:
Federal legislation requires employers to file federal Forms
W-2/W-3 by January 31 with the Social Security Administration.
State Annual Reconciliation Returns/Forms Due Date
Alabama (A-3), Arizona (A1-R), California (quarterly DE 9), Colorado (DR 1093)1, Connecticut (CT-W3), Delaware
(WTH-REC), District of Columbia (quarterly FR-900Q), Georgia (G-1003), Hawaii (HW-30)1, Idaho (967), Indiana
(WH-3), Kansas (KW-3), Kentucky (K-3), Louisiana (L-3), Maryland (MW508)1, Massachusetts (M-3)1, Mississippi
(89-140)1, Missouri (MO W-3), Montana (MW-3), Nebraska (W-3N), North Carolina (NC-3), North Dakota (307)1,
Ohio (IT 31 &IT 941 using Ohio Business Gateway), Oklahoma (no paper form file using OkTAP), Oregon
(OR-WR 150-206-012), Pennsylvania (REV-1667 AS), Puerto Rico (499 R-3), Rhode Island (RI-W3), South Carolina
(WH-1606), Utah (TC-941R), Vermont (WHT-434), Virginia (VA-6), West Virginia (WV/IT-103), Wisconsin (WT-7)
1-31-24
New Jersey (NJ-W-3M, electronically via Premier Business Services) 2-15-24
Arkansas (AR3MAR), Maine (W-3ME), Michigan (5081, electronically via Michigan Treasury Online) 2-28-24
1 Required only for employers filing paper copies of Forms W-2.
IRS Releases 2023 Form 940 and Schedule A
The IRS released the 2023 Form 940, Employer’s Annual
Federal Unemployment (FUTA) Tax Return Schedule A (Form
940), Multi-State Employer and Credit Reduction Information
and Instructions for Form 940.
Credit reduction states, territory
California and New York, along with the Virgin Islands, did
not pay back their federal loans by the November 10, 2023,
deadline and will lose the full Federal Unemployment Tax Act
(FUTA) credit for 2023 (88 F.R. 83970, 12-1-23 see PAYSTATE
UPDATE, Issue 23, Vol. 25).
For 2023, California and New York are subject to a FUTA
credit reduction of 0.6%, and the Virgin Islands is subject to a
FUTA credit reduction of 3.9%. The Virgin Islands had a credit
reduction in each of the past 12 years (2011-2022).
Connecticut and Illinois, along with California, New York,
and the Virgin Islands, were subject to a FUTA credit reduction
for 2022. Connecticut and Illinois paid off their outstanding
loans, so they are not subject to a credit reduction for 2023.
Form 940, Schedule A reflects reductions
The additional FUTA tax must be deposited by the due
date of the 2023 federal Form 940, which is January 31, 2024.
However, employers that deposited all FUTA tax when it was
due may file Form 940 by February 12, 2024.
The 2023 Schedule A contains the official list of credit
reduction states the credit reduction total from Schedule A is
reported on Form 940.
What’s new
New Form 940 (sp) available in Spanish for tax year 2023.
All employers, including employers in Puerto Rico and the
Virgin Islands, have the option to file the new Form 940 (sp)
and Schedule A (sp) for tax year 2023. The instructions are also
available in Spanish. Form 940-PR is no longer available.
Electronic filing of an amended Form 940. Beginning
sometime in 2024, the IRS said it expects to allow the filing of an
amended Form 940 as part of its Modernized e-File (MeF).
Thirteen Indiana Counties, State Have Tax Rate Changes for 2024
Effective January 1, 2024, the Indiana Department of
Revenue (DOR) has issued a new Departmental Notice No.
1 providing that 13 counties increased their income tax rates
and the state withholding rate is reduced [DOR, Departmental
Notice No. 1, How to Compute Withholding for State and County
Income Tax, eff. 1-1-24 News, 12-15-23 and 12-27-23].
January 8, 2024 Volume 26 Issue 1
