Income tax withholding and payment is a requirement for all employers.  Specifric state guidelines must be followed to avoid penalties.  The information provided below will help you to meet your obligation to the states and avoid penalties.

 

Each type of tax requires a different eFiling account in order to make payment.  You must sign up for an eFiling account for each type of tax you have to pay in order to make payment.

 
In order to withhold and  make payments you need a tax ID and you also must sign up for a withholding account with the respective States Department of Revenue.
States specify the amount to withhold as a percentage or based on a withholding table.  You should follow these guidelines to determine how much to withhold.
Each state has their own payment schedule.  Payment is generally done on a semi weekly, bi-weekly, monthly, quarterly or annual basis.
In most states businesses are not required to withhold taxes on wages paid for domestic labor.
Businesses that refuses to withhold and pay payroll taxes can be held liable.  Penalties includes a fine as a percentage of the amount due which could range from 1/2% to 30%.  Businesses can also be fined for making underpayments and for late filing and payments.  Using the wrong payment method could also result in a penalty.  Consistently making late payments could also result in penalties.  In some states business owners can be held personally liable for not living up to their payroll withholding obligations.  In some sates wilful tax evasion can bring hefty fines and jail time (felony conviction). 
Withholding payroll taxes is a complicated task.  The best way to approach this task is to use a payroll software or service.

Utilize these payroll tax calculators to determine what you should withhold and pay.

Find information below for your specific state.

State Who Must Withhold Rate Due Dates Account Payment Forms
AL If you’re a business working in Alabama you need an account. Withholding Rate:  5%.  (see page 3) Due Dates: (page 4)

Account

Payment

 Forms
Form A-1
AK no withholding requirement
AZ An employer must withhold Arizona tax from wages paid for services performed within Arizona regardless of whether the employee is a resident or nonresident of Arizona.  An employer may not have to withhold Arizona tax from wages paid to a nonresident performing services in Arizona if the employee is physically present in Arizona for less than 60 days in a calendar year.  Additionally, an employer may not have to withhold Arizona tax from wages paid to a nonresident employee who is the spouse of a servicemember Withholding Rate:  0.8%-5.1%. (rates listed on A4 Form). Due Dates Account

Payment
 Must eFile if estimated taxes for the prior year was $20,000 or more.

Forms
 A-4
AR Must withhold for resident and nonresident employees for services performed within the state. Withholding Rate:  7%.  (page 5).

Due Dates

 Account

Payment
 Must pay electronically if tax liability is $20,000 or more per month or quarter.

Forms
 AR-3
AR941M
AR941A
CA Companies with employees in California that pay more than $100 in wages must register with the Employment Development Department (EDD) Withholding Rate:  See withholding tables starting onpage 17. Due Dates Account

Payment

  
CO If a business has employees in Colorado it must collect and remit wage withholding taxes from employees Withholding Rate:  See withholding tables on page 8. Due Dates

Account

Payment

Forms
 DR 1094
DR 1093
CT Anyone who maintains an office or transacts business in Connecticut and who is considered an employer for federal withholding purposes must withhold Connecticut income tax. Withholding Rate:  See withholding tables.

Due Dates

 Register with CT Department of Revenue for tax registration number then register with the CT Department of Labor.

eFile Payment

Forms
 CT-W4
CT-941
CT-8109
DE Every employer maintaining an office or conducting business in Delaware who makes a payment of wages or other remuneration to a resident or non-resident (of Delaware) must pay Withholding Tax. Withholding Rate:  2.2%-6.60%.  (See withholding tables). Due Dates Account

eFile withholding

  
FL No payroll withholding required          
GA

Employers are required to withhold Georgia income tax from the wages of residents

for services performed inside or outside of this state and from nonresidents for services performed in

Georgia.		 Withholding Rate:  See withholding tables on page 40.

Due Dates

 Account

eFile withholding Payment

Forms
CRF-002
HI Any person subject to the jurisdiction of the State and paying wages on behalf of an employer must deduct and withhold from such wages. Withholding Rate:  1.40%-7.60%.  (see page withholding tables st Due Dates Account

Payment

Forms
HW-14
ID If you have an employee earning income while in Idaho, you must have an Idaho withholding account.  An out-of-state employer who has no employees working in Idaho can voluntarily withhold Idaho income tax for an employee with an Idaho filing requirement. Withholding Rate:  1.6%-7.4%.  (see withholding table on page 23).

Due Dates (page 9)

Account

Payment

Must pay electronically if making of $100,000 or more.

Form

967
IL Generally, you must withhold Illinois Income Tax if you are required to withhold (or have a voluntary agreement to withhold) federal income tax from payments you make for employee compensation (i.e., wages and salaries) paid in Illinois; gambling or lottery winnings in Illinois paid to an Illinois resident; or unemployment paid to an Illinois resident who has asked to have Illinois taxes withheld. Withholding Rate 5% Due Dates

Account

ePay withholding Payment

Forms

IL-941
IL-501s
IN If you are required to withhold payroll taxes by the IRS you are also required to withhold payroll taxes for the state of Indiana. 

Withholding Rate: each county in Indiana has a separate withholding rate.

Due Dates

Account

Payment
All businesses must file and pay electronically

Forms
WH-1
IA

Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from

that compensation.		 Withholding Rate:  same requirement as for federal; 6%

Payment

 

Account

 Due Dates

Forms
44-105
KS An employer must withhold Kansas tax if the employee is a resident of Kansas, performing services inside or outside of Kansas, or a nonresident of Kansas, performing services in Kansas.  Any employer or payor who must withhold Federal Income Tax from payments other than wages made to Kansas residents must also withhold Kansas Tax. Withholding Rate:  2.7%-4.8%

 

Due Dates: (page 10)

Account

 

 

 Payment

Forms

KW-3s
KY Kentucky Law requires employers to withhold income tax for both residents and nonresidents employees (unless exempted by law). Employers must withhold the income tax of the employees receiving "wages" as defined in Section 3401(a) of the Internal Revenue Code. Withholding Rate:  6% for income over a certain amount.  See rate table.

Due Dates

Account

Kentucky Tax Registration Application, Revenue Form 10A100

Payment

Forms

K-1
K-2

K-3
LA Every employer who has resident or nonresident employees performing services within Louisiana is required to withhold Louisiana income tax. Withholding Rates:  See rate table.

Due Dates:  (page 6)

Account

Payment

Forms
L-1
ME Employers required to withhold federal payroll taxes must also withhold Maine payroll taxes.

Withholding Rates: 5% (page 6-8)

Due Dates

Account: (#7)

Payment

Forms
941ME
MD An employer subject to the jurisdiction of Maryland with employees in Maryland. Withholding Rate:  (page 10)

Due Dates:  (page 6&7)

Account

Payment

Forms
MW508
MA Employers are required by law to withhold Massachusetts personal income tax from the wages of residents for services performed either within or outside Massachusetts, and from the wages of nonresidents for services performed in Massachusetts.  Withholding Rate:  5.25%.  (see what is the percentage method?)

Due Dates

Accounts

Payment

Must use electronic method to file  and pay if withholding is $5,000 or more

Forms
M3
M941
MI Every Michigan employer who is required to withhold federal income tax under the Internal Revenue Code must be registered for and withhold Michigan income tax. Withholding Rate:  4.25% Due Dates

Accounts

Payment

Forms
 165
MN In most cases, you are required to withhold Minnesota income tax and file a return if: You employ anyone who works in Minnesota or is a Minnesota resident and you are required to withhold federal income tax from their wages Withholding Rate:  5.35% to 9.85% (see page 19)

Due Dates

Account

ePay

 ePay requried if taxes are more than $10,000

Forms
MW5
MS Every employer engaged in business, licensed to do business, or transacts business in Mississippi or who pays wages to a Mississippi resident (regardless of where the services are performed), or pays wages to a non-resident (persons domiciled outside of Mississippi ) for services performed in Mississippi must register for a Withholding Tax account. Withholding Rate:  See withholding table

Due Dates

Account

Payment

Forms
89-350
MO Businesses operating under Missouri law and is requried to withhold federal taxes must also withhold Missouri taxes. Withholding Rate:  (see withholding tax tables)

Due Dates

Account: Form 2643A

Payment

Forms
MO-941
MT Any business in Montana that pay wages to individuals must withhold and pay payroll taxes. Withholding Rate:  6.6% (see withholding tables)

Due Dates

Account

Payment

Forms
MW-3
NE If you have an office or conduct business in this state and are considered an employer for federal purposes, you must withhold income taxes for Nebraska. This includes payments made to all employees, including nonresidents, for services performed in this state.

Withholding Rate: 

special withholding rate is 1.5%. 

Other withholdnig is 2.26%-6.95%

Due Dates

Account

Payment

By 2014 all businesses  must use electronic pay system if withholding is $5,000 or more.

Forms
Form 501N
Form 941N
NV No withholding requirement
NH No withholding requirement
NJ Any business with an office in NJ or transacting business in NJ and paying wages to employees that are subject to the New Jersey Gross Income Tax (resident and nonresident). Withholding Rate:  1.5%-9%.  (see witholding tables)

Due Dates

Account

Payment

Forms
NJ-W4
NM An employer who withholds a portion of an employee's wages for payment of federal income tax must withhold state income tax. Withholding Rate:  1.7%-5.3%.  See withholding tables  Due Dates

Account

Payment

Forms
CRS-1
NY If you're an employer and you maintain an office or transact business within New York State, whether or not a paying agency is maintained within the state, you must withhold personal income tax.

Withholding Rate:  9.62%.  (See withholding tables)

Due Dates

Account

Payment

Forms
IT-2104
NC Businesses operating in North Carolina and paying wages to employees are required to withhold payroll taxes. Withholding Rate:  4%.   (page 6.  See withholding tables on page 13)

Due Dates

Account

Payment
Must use electronic payment if withholding tax is more than $240,000.00.

Forms
NC-5Q
ND An employer is required to withhold North Dakota income tax from wages paid to an employee if the employee performs services within North Dakota and the wages are subject to federal income tax withholding.

Withholding Rate:  1.22%-3.22%.  (see withholding tables)

Due Dates

Account

ePay

Forms
306
OH All employers maintaining an offi ce or transacting business in Ohio and required to withhold federal income tax must withhold payroll taxes for Ohio. Withholding Rate:  0.581%-5.805%.  (see withholding tables)

Due Dates

Account

Payment

Forms
941
OK Businesses operating in Oklahoma are required to withhold and pay state withholding tax on wages paid to an employee. Business owners are not required to withhold or pay state withholding tax on payments made to independent contractors Withholding Rate:  See withholding tables.

Due Dates

Account

Payment

Forms
WTH10001
OR Employers residing in, or doing business in Oregon must withhold tax from all wages paid to employees who are residents of Oregon, even for services performed and wages earned outside of Oregon. Employers must also withhold tax from all wages earned by nonresident employees for services performed in Oregon. Withholding Rate:   See withholding tables

Due Dates: (page 20)

Account

Payment

Forms
OQ
PA Pennsylvania law requires employers to withhold Pennsylvania personal income tax from employees’ compensation in two common cases:  When resident employees perform services within or outside Pennsylvania; and When nonresident employees perform services within Pennsylvania.  Withholding Rate:  page 10

Due Dates

Account

Payment

Forms
CT-V
RI The filing service must be used by employers who withhold $50.00 or more but less than $600.00 for a calendar month from employees' wages. Withholding Rate:   See withholding tables

Due Dates

Account

Payment

Forms
TX-17
SC Every employer/withholding agent having an employee earning wages in South Carolina and who is required to make a return or deposit with the Internal Revenue Service (IRS) shall make a return or deposit to the SC Department of Revenue for any taxes that have been withheld for state purposes. Withholding Rate:   See tax tables

Due Dates

Account

Payment
Must use electronic payment if withholding tax exceeds $15,000 or more per quarter.

Forms
WH-1601
SD No withholding requireme
TN No withholding requirement
TX No withholding requirement
UT You must withhold Utah income tax if you pay wages to any employee for work done in Utah and pay wages to Utah resident employees for work done outside Utah. Withholding Rates:  See withholding tables on page 9

Due Dates:  (page 5)

Account

Payment
All payments are made electronically.

  
VT Businesses operating in Vermont and paying wages to employees must withhold payroll taxes for employees who are residents and nonresidents who perform work in Vermont. Withholding Rate: 3.55%-8.95%.  (See withholding tables). 

Due Dates

Account

Payment
Must use electronic payments if withholding taxes are expected to be more than $9,000.

Forms
WH-434
VA Businesses in Virginia are required to withhold Virginia payroll taxes if they are also required to withhold federal payroll taxes. Withholding Rates:  2%-5.75%.  (see withholding calculator).

Due Dates

Account

Payment
All payments must be made electronically.

  
WA No withholding requirement
WV Businesses operating in West Virginia and pay wages to employees who are residents and non-residents working in West Virginia must withhold payroll taxes. Withholding Rates:  3%-6.5%.  (See withholding tables).

Due Dates

Account

Payment

Forms
IT101
WI Businesses who pay wages to wisconsin residents; non residents who performed work in wisconsin but live in a state which does not have Wisconsin recirprocity agreement; any business organized under wisconsin law.  Employee is a resident of a state with no reciprocity agreement with Wisconsin and they expect annual Wisconsin earnings to be less than $1,500.

Withholding Rates:   4%-7.65%.  (see withholding tables on page 17).

 Due Dates

Accounter

Payment

Forms
WT-6
WT-7
WY No withholding requirement