Requirement of withholding.

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  • (1) Each employer making payment of wages shall deduct and withhold from wages an amount to be determined by a commission rule which will, as closely as possible, pay the income tax imposed by this chapter.
  • (2)
    • (a)
      • (i) Any employer described in Subsection (1) that is to do business within the state for a period not to exceed 60 days in the aggregate during any calendar year may be relieved from the requirement provided for under this part for such period by furnishing to the commission in advance a certificate so certifying.
      • (ii) If an employer described in Subsection (2)(a)(i) thereafter does business within the state for a period in excess of 60 days, that employer shall be liable for all the tax that the employer would have been required to deduct and withhold.
      • (iii) Upon a showing of good cause by the employer, the commission may extend for a period of not to exceed 30 days the time during which the employer is not required to deduct and withhold the tax.
    • (b) The exemption described in Subsection (2)(a) is from the withholding requirement described in Subsection (1), not from an individual's obligation to pay income taxes as provided in Part 1, Determination and Reporting of Tax Liability and Information.
  • (3)
    • (a) The amount withheld under this section shall be allowed to the recipient of the income as a credit against the tax imposed by this chapter.
    • (b) Except as provided in Subsection (3)(c), the amount withheld during any calendar year shall be allowed as a credit for the taxable year that begins in the calendar year in which the amount is withheld.
    • (c) If more than one taxable year begins in a calendar year, the withheld amount shall be allowed as a credit for the last taxable year that begins in the calendar year in which the amount is withheld.




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