Senate Bill No. 579
(By Senator Kimble)
[Introduced February 17, 1998; referred to the
Committee on Finance.]
A BILL to amend and reenact section seventy-four, article twenty- one, chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
allowing state household employers to file payroll tax
returns on household employees on an annual basis at the
time their personal income tax returns are due.
Be it enacted by the Legislature of West Virginia:
That section seventy-four, article twenty-one, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-74. Employer's return and payment of withheld taxes.
(a) General. -- Every employer required to deduct and
withhold tax under this article shall, for each calendar quarter,
on or before the last day of the month following the close of
such calendar quarter, file a withholding return as prescribed by
the tax commissioner and pay over to the tax commissioner the
taxes so required to be deducted and withheld. Where the
aggregate amount so deducted and withheld by any employer is less
than twenty-five dollars in a calendar quarter and the aggregate
for the calendar year can reasonably be expected to be less than
one hundred dollars, the tax commissioner may by regulation
permit an employer to file an annual return and pay over to the
tax commissioner the taxes deducted and withheld on or before the
last day of the month following the close of such calendar year.
The tax commissioner may, if he believes such action necessary
for the protection of the revenues, require any employer to make
such return and pay to him the tax deducted and withheld at any
time, or from time to time. Filings evidencing payroll taxes
paid or collected for household or domestic employees shall be
made on a form provided by the commissioner. The filing of
payroll tax returns and the payment of any tax due for household
or domestic employees may be made on an annual basis at the time
the taxpayer's personal income tax is due.
(b) Monthly returns and payments of withheld tax on and after June 1, 1971. -- Notwithstanding the provisions of
subsection (a), on and after June 1, 1971, every employer
required to deduct and withhold tax under this article shall, for
each of the first eleven months of the calendar year, on or
before the twentieth day of the succeeding month and for the last
calendar month of the year, on or before the last day of the
succeeding month, file a withholding return as prescribed by the
tax commissioner and pay over to the tax commissioner the taxes
so required to be deducted and withheld, if such withheld taxes
aggregate one hundred dollars or more for such month; except any
employer with respect to whom the tax commissioner may have by
regulation provided otherwise in accordance with the provisions
of subsection (a): Provided, That in accordance with regulations
promulgated by the tax commissioner, a payment of withheld tax
may be subject to the credit set forth in section nine-b, article
fifteen of this chapter and the credit set forth in section
three-b, article fifteen-a of this chapter.
(c) Deposit in trust for tax commissioner. -- Whenever any
employer fails to collect, truthfully account for, or pay over
the tax, or to make returns of the tax as required in this
section, the tax commissioner may serve a notice requiring such
employer to collect the taxes which become collectible after
service of such notice, to deposit such taxes in a bank approved by the tax commissioner, in a separate account, in trust for and
payable to the tax commissioner, and to keep the amount of such
tax in such account until payment over to the tax commissioner.
Such notice shall remain in effect until a notice of cancellation
is served by the tax commissioner.
(d) Accelerated payment. --
(1) Notwithstanding the provisions of subsections (a) and
(b) of this section, for calendar years beginning after the
thirty-first day of December, one thousand nine hundred ninety,
every employer required to deduct and withhold tax whose average
payment per calendar month for the preceding calendar year under
subsection (b) exceeded one hundred thousand dollars shall remit
the tax attributable to the first fifteen days of June each year
on or before the twenty-third day of said month of June.
(2) For purposes of complying with subdivision (1) of this
subsection (d), the employer shall remit an amount equal to the
withholding tax due under this article on employee compensation
subject to withholding tax payable or paid to employees for the
first fifteen days of June or, at the employer's election, the
employer may remit an amount equal to fifty percent of the
employer's liability for withholding tax under this article on
compensation payable or paid to employees for the preceding month
(3) For an employer which has not been in business for a
full calendar year, the total amount the employer was required to
deduct and withhold under subsection (b) for such prior calendar
year shall be divided by the number of months, including
fractions of a month, that it was in business during such prior
calendar year, and if that amount exceeds one hundred thousand
dollars, the employer shall remit the tax attributable to the
first fifteen days of June each year on or before the twenty- third day of said month of June, as provided in subdivision (2)
of this subsection (d).
(4) When an employer required to make an advanced payment of
withholding tax under subdivision (1) of this subsection (d)
makes out its return for the month of June, which is due on the
twentieth day of July, such employer may claim as a credit
against its liability under this article for tax on employee
compensation paid or payable for employee services rendered
during the month of June the amount of the advanced payment of
tax made under subdivision (1) of this subsection (d).
NOTE: The purpose of this bill is to allow household
employers to file payroll tax forms along with any payment due on
an annual basis to coincide with the payment of their personal
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language that would be added.