143.225. Quarter-monthly remittance, when--deemed filed on time, when--quarter-monthly defined--underpayment penalty, exceptions--electronic funds payment system authorized.
Quarter-monthly remittance, when--deemed filed on time,when--quarter-monthly defined--underpayment penalty,exceptions--electronic funds payment system authorized.
143.225. 1. The director of revenue, by regulation, may require anemployer to timely remit the unpaid amount required to be deducted andwithheld by section 143.191 at the end of any quarter-monthly period, only ifthe employer was required to deduct and withhold six thousand dollars or morein each of at least two months during the prior twelve months.
2. The director may increase the monthly requirement to more than sixthousand dollars or otherwise narrow the application of the quarter-monthlyremittance system authorized by this section. The director may not requirethe remittance of withheld taxes more often than monthly unless authorized bythis section.
3. A remittance shall be timely if mailed as provided in section 143.851within three banking days after the end of the quarter-monthly period or ifreceived by the director or deposited in a depository designated by thedirector within four banking days after the end of the quarter-monthly period.
4. The unpaid amount shall be after a reduction for the compensationprovided by section 143.261. The unpaid amount at the end of aquarter-monthly period shall not include unpaid amounts for any priorquarter-monthly period.
5. For purposes of this section, "quarter-monthly period" means:
(1) The first seven days of a calendar month;
(2) The eighth to fifteenth day of a calendar month;
(3) The sixteenth to twenty-second day of a calendar month; and
(4) The portion following the twenty-second day of a calendar month.
6. (1) In the case of an underpayment of any amount required to be paidpursuant to this section, an employer shall be liable for a penalty in lieu ofall other penalties, interest or additions to tax imposed by this chapter forviolating this section. The penalty shall be five percent of the amount ofthe underpayment determined under subdivision (2) of this subsection.
(2) The amount of the underpayment shall be the excess of:
(a) Ninety percent of the unpaid amount at the end of a quarter-monthlyperiod; over
(b) The amount, if any, of the timely remittance for the quarter-monthlyperiod.
7. (1) The penalty with respect to any quarter-monthly period shall notbe imposed if the employer's timely remittance for the quarter-monthly periodequals or exceeds one-fourth of the average monthly withholding tax liabilityof the employer for the preceding calendar year. The month of highestliability and the month of lowest liability shall be excluded in computing theaverage. This subdivision shall apply only to an employer who had awithholding tax liability for at least six months of the previous calendaryear.
(2) The penalty shall not be imposed if the employer establishes thatthe failure to make a timely remittance of at least ninety percent was due toreasonable cause, and not due to willful neglect.
(3) The penalty shall not be imposed against any employer for the firsttwo months the employer is obligated to make quarter-monthly remittance ofwithholding taxes.
8. Tax amounts remitted under this section shall be treated as paymentson the employer's monthly return required by subsection 2 of section 143.221.Tax amounts remitted under this section shall be deemed to have been paid onthe last day prescribed for filing the return. The preceding sentence shallapply in computing compensation under section 143.261, interest, penalties andadditions to tax and for purposes of all sections of chapter 143, except thissection.
9. The director of revenue may prescribe the use of an electronic fundspayment system for the payment of withholding taxes by any employer subject tothe requirement of quarter-monthly remittance as provided in this section.
(L. 1983 1st Ex. Sess. H.B. 10, A.L. 2003 H.B. 600)Effective 7-01-03