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District of Columbia Payroll Taxes

District of Columbia requires the following state payroll Tax and withholding forms

Form NHR – New Hire Reporting

Employers must report all new hires to the District of Columbia within 20 days of their employment. This form helps the state track employment data and ensures that new hires are correctly registered for tax purposes. Timely reporting avoids penalties and ensures that your business stays compliant.

Form FR900Q – Quarterly Employer’s Income Tax Withholding Report

Employers must file Form FR900Q on a quarterly basis to report the total income tax withheld from employees’ wages. This form is due by the 15th of the month following the end of each quarter, ensuring that the state receives timely tax payments.

Important Deadlines for District of Columbia Payroll Tax Filings

Form NHR (New Hire Reporting)

  • Due within 20 days of hiring a new employee.

Form FR900Q (Quarterly Tax Withholding Report)

  • description
    1st Quarter (January - March): Due April 30
    2nd Quarter (April - June): Due July 31
    3rd Quarter (July - September): Due October 31
    4th Quarter (October - December): Due January 31
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Additional Information

Amendment returns

FR900Q- If you discover an error on a previously filed Form FR-900Q, you must amend the return by indicating that it is an amended return. This ensures that corrections are properly processed and reconciled by the District of Columbia.

Penalty for Late Filing

Late Filing or Payment

  • 5% penalty per month for each month the tax is not filed or paid.
  • The penalty can reach up to 25% of the tax due.

Negligence

  • If you underpay taxes due to negligence, you may face a 20% penalty.
  • Negligence includes failing to keep proper records or not making a reasonable effort to comply.

Interest on Late Payments

  • 10% interest per year, compounded daily, will be charged on any late payments.

Collection Fee

  • After 90 days, a 10% collection fee will be added to any unpaid tax balance.

Fraud Penalty

  • If tax underpayment is due to fraud, a 75% penalty is charged.

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Frequently Asked Questions (FAQ)

Filings done past the set deadline may attract a fine, or certain penalties. These charges should be avoided by filing your forms on time as much as possible.

Both Form NHR and FR900Q can be filed via an eFiling solution such as Tax1099 which will allow for a quick, safe, and efficient manner in which to file.

Yes, if there is an error in the filing, one can correct the forms through the right procedures. Proposed correction for Form FR900Q should be made in order to avoid penalties if the-product of the form is incorrect.

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