Form Fr-900m - Employer'S/payor'S Withholding Tax Booklet

Form Fr-900m - Employer'S/payor'S Withholding Tax Booklet - 2012 Page 2

What’s new.....

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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.

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

(upload or on-line data entry), or as paper forms attached to the Transmittal Form W-2-1099T.

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W-2 forms must be transmitted to the DC Ofﬁ ce 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 ﬁ led on paper, on CD or electronically.

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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 sub-

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

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

a. A qualiﬁ ed employee plan;

b. A qualiﬁ ed employee annuity plan;

c. A deﬁ ned contribution plan;

d. A tax sheltered annuity plan;

e. An individual retirement account;

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

g. Any similarly situated plan as deﬁ ned by the Internal Revenue Code.