Multi-Page Printing

© 2021 American Payroll Institute, Inc. Filing Annual Reconciliation Returns in 2021 Afile ll states with a state income tax require employers to an annual reconciliation return following the end of the calendar year, except Illinois, 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. There has been a recent trend to move up the filing deadline for Forms W-2 and state annual reconciliation returns to the end of January to combat tax fraud. Thus, 31 states, the District of Columbia, and Puerto Rico have a filing deadline of January 31 (which is delayed until February 1, 2021, because January 31 is a Sunday). Hawaii form changes Beginning with tax year 2020 (meaning forms due in 2021), Form HW-3, Employer’s Annual Return and Reconciliation of Hawaii Income Taxes Withheld From Wages, is no longer used. New Form HW-30, Employer’s Annual Transmittal of Hawaii Income Tax Withheld From Wages, is used to send paper Forms W-2 or HW-2, Statement of Hawaii Income Tax Withheld and Wages Paid, to the Hawaii Department of Taxation. The chart below shows the filing deadlines for the 2020 tax 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), Colorado1 (DR 1093), Connecticut (CT-W3), Delaware (W-3), District of Columbia (quarterly FR-900Q), Georgia (G-1003), Idaho (967), Indiana (WH-3), Kansas (KW-3), Kentucky (K-3), Louisiana (L-3), Maryland1 (MW508), Massachusetts1 (M-3), Mississippi1 (89-140), Missouri (MO W-3), Montana (MW-3), Nebraska (W-3N), North Carolina (NC-3), North Dakota1 (307), Ohio (IT-3)1, 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) 2-1-21 (because 1-31-21 is a Sunday) Iowa (VSP 44-007), New Jersey (NJ-W-3M) 2-16-21 (because 2-15-21 is a holiday) Arkansas (AR3MAR), Hawaii (HW-30)1, Maine (W-3ME), Michigan (5081) 3-1-21 (because 2-28-21 is a Sunday) 1 Required only for employers filing paper copies of Forms W-2. State Disability Insurance and Paid Family Leave Rates for 2021 Sfamilywith tates state disability insurance (SDI) or paid leave (PFL) programs have announced annual contribution rates and taxable wage bases for 2021. State disability insurance programs California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island provide SDI benefits to employees who are temporarily disabled by an injury or illness that is not job-related through a tax-supported state fund. Employers are generally required to pay employer contributions and to withhold and remit employee contributions, as applicable. State paid family leave insurance programs Some of the newest PFL programs have been created without the underlying infrastructure of an existing SDI program, including in Colorado (effective January 1, 2023), Connecticut (effective January 1, 2021), the District of Columbia, Massachusetts, Oregon (effective January 1, 2022), and Washington. In addition to family-related uses, these PFL programs – that are separate from SDI programs – also allow employees to use PFL for the employee’s own serious illness. SDI and PFL employer and employee contribution rates and wage bases for 2021 are provided in the chart that follows (this updates The Payroll Source®, §7.3 and APA’s Guide to State Payroll Laws, §9.1). Click on a state abbreviation for the agency webpage. State Program Employer Contributions Employee Contributions 2021 Wage Base CA SDI (PFL included)1 None required may pay all or part of employee’s contribution 1.2% of annual earnings up to wage base (maximum $1,539.58 for 2021) (includes PFL surcharge) 1 $128,298 (annually) January 11, 2021 Volume 23 Issue 1