Form Fr-900a - Employer'S/payor'S Withholding Tax

Form Fr-900a - Employer'S/payor'S Withholding Tax - 2011 Page 2

What’s New .....

• The calculation for withholding has changed as of January 1, 2012. See FR-230, 2012 District of Columbia (DC) Income Tax Withholding Instructions

and Tables.

• Employers or payors must file Forms W-2 electronically if the number of W-2 forms is greater than 25. If 25 or fewer, the employer or payor may file

electronically (upload or use on-line data entry), or as paper forms attached to the Transmittal Form W-2.

• W-2 forms must be transmitted to the DC Office of Tax and Revenue (OTR) on or before January 31 of the year following the tax year for which they are

issued whether they are filed on paper, on CD or electronically.

• The District now requires withholding at the highest DC income tax rate (8.95%) for DC residents on distributions from retirement accounts or plans that are

subject to federal withholding. This is applicable for distributions after December 31, 2011.

The terms “retirement account” or “retirement plan” mean:

• A qualified employee plan;

• A qualified employee annuity plan;

• A defined contribution plan;

• A tax sheltered annuity plan;

• An individual retirement account;

• Any combination of the plans and accounts listed in a through e above; or

• Any similarly situated plan as defined by the Internal Revenue Code.