District of Columbia INCOME TAX WITHHOLDING 2018 FR-230

1 Government of the District of ColumbiaOffice of the Chief Financial OfficerOffice of Tax and Revenue District of ColumbiaINCOME TAX WITHHOLDINGI nstructions and Tables2018 FR-230 WITHHOLDING Allowances for the Year 2018 The tables reflect WITHHOLDING amounts in dollars and cents. NOTE: You will not be able to use your social security number if you are a business/employer and filing/paying WITHHOLDING tax to the District of Columbia . FR-230 Rev. 11/17 What's New The District of Columbia (DC) Office of Tax and Revenue (OTR) will no longer accept CD's or any media for filing W-2's or 1099's. You must use the bulk upload or online data entry via The personal exemption for the tax year 2018 has increased to $4,150. District personal exemption for taxpayers who are blind or age 65 and older are no longer was the last year WITHHOLDING booklets were mailed.

2 Beginning 01/01/2017, all WITHHOLDING forms and instructions are available on the web portal, District of Columbia Office of Tax and Revenue (OTR) made changes to its WITHHOLDING fil-ing requirements and tax returns beginning with 2017 filing year. To reduce the paperwork burden for WITHHOLDING filers like you, OTR closely aligned its forms with the federal to the IRS 941 quarterly WITHHOLDING filing, all existing monthly filers in the District of Columbia will be converted to filing their returns quarterly. Existing quarterly and annual filers will remain the DUE DATES:FOR FILING QUARTERLY WITHHOLDING RETURNSQ uarter includes Quarter ends Form FR-900Q is dueJanuary, February, March March 31 April 30 April, May, June June 30 July 31 July, August, September September 30 October 31 October, November, December December 31 January 31 WITHHOLDING payments must still be deposited by the 20th of each month for the amount of tax with-held in the previous month.

3 For example, the January tax withheld must be paid by February 20th, and the February tax withheld must be paid by March 20th. The due date for the 2019 FR-900A and FR-900NP is January 31, 2020. An FR-900P Payment Voucher is available for paper District will require WITHHOLDING at the highest DC INCOME tax rate (currently ) for DC residents on lump-sum distributions from retirement accounts or retirement plans but not including:(a) any portion of a lump-sum payment that was previously subject to tax;(b) an eligible rollover distribution that is effected as a direct trustee to trustee transfer;(c) a rollover from an individual retirement account to a traditional or Roth individual retirement account that is effected as a direct trustee to trustee transfer.

4 This is applicable for distributions after December 31, terms "retirement account" or "retirement plan" mean:a. A qualified employee plan;b. A qualified employee annuity plan;c. A defined contribution plan;d. A tax sheltered annuity plan;e. An individual retirement account;f. Any combination of the plans and accounts listed in a through e above; org. Any similarly situated plan as defined by the Internal Revenue Tax WITHHOLDING Methods PagePercentage of Wages Paid Method Single Filers or Married Persons/Registered Domestic Partners Filing Separately/ 9 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er) and Head of Household Wage Bracket MethodDaily or Miscellaneous WITHHOLDING Tax Tables Single Filers or Married Persons/ Registered Domestic Partners Filing Separately/ 12 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er) and Head of Household Weekly WITHHOLDING Tax Tables Single Filers or Married Persons/Registered Domestic Partners Filing Separately/ 16 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er)

5 And Head of HouseholdBiweekly WITHHOLDING Tax Tables Single Filers or Married Persons/Registered Domestic Partners Filing Separately/ 19 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er) and Head of HouseholdSemimonthly WITHHOLDING Tax Tables Single Filers or Married Persons/Registered Domestic Partners Filing Separately/ 23 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er) and Head of HouseholdMonthly WITHHOLDING Tax Tables Single Filers or Married Persons/ Registered Domestic Partners Filing Separately/ 27 Married or Registered Domestic Partners Filing Jointly/Qualifying Widow(er) and Head of Household1 DEFINITION OF EMPLOYER AND PAYORThe term Employer means employer as defined in Section 3401(d) of the Internal Revenue Code of 1986, and includes any person, firm or corporation, including organizations which may themselves be exempt from INCOME tax, such as religious organizations, as well as the federal or District Governments and any agency, instrumentality or political subdivision of such governments, employing or using the services of one or more individuals for hire, remuneration or compensation of any "Payor" is an individual or other entity paying retirement dis-tributions or other payments subject to DC employer or payor who is required to withhold DC INCOME tax from the wages or other payments subject to DC WITHHOLDING of his/her employees, former employees or payees should have a Federal Employer Identification Number (FEIN)

6 Before completing and filing Form FR-500 Combined Registration Application for Business DC Taxes/Fees/Assessments. Complete the FR-500 online at employer or payor should have only one FEIN and should keep a record of it. This number should be used on all correspondence with the Office of Tax and Revenue (OTR) regarding DC WITHHOLDING Identification Number (TIN)Beginning January 1, 2017, you must have a Federal Identification Number (FEIN) to file and pay withhold-ing tax. An FEIN is a valid number issued by the IRS. To apply for an FEIN, get Form SS-4, Application for Employer Identification Number, or get this form online at and clicking on Employer Identification Number (EIN) under Starting a Business.

7 You may also get this form by calling 1-800-TAX-FORM (1-800-829-3676). You must wait until you receive the FEIN before you file a DC return. An employer who has acquired the business of another employer may not use the FEIN assigned to the other employ-er, but must apply for a new number (unless already assigned a number).Account NumberThe account number must be the number that was provided by OTR when you registered. Omission of the account num-ber will cause delays in processing your return. Taxpayers are responsible for providing their assigned OTR account number to your tax professional, financial institution, payroll service, or other trusted third-party that are completing the WITHHOLDING tax you are a non-payroll entity you will receive a different with-holding account ID after January 1, 2017.

8 You will be able to request a number by accessing your account on instructions and procedures in this booklet apply to all employers, including agencies of the United States Government. Federal agencies are required to withhold INCOME taxes from the wages of employees who are DC residents if their regu-lar place of employment is in DC. Federal agencies are also required to withhold DC taxes from DC residents whose regu-lar place of employment is outside the District , if the employee voluntarily agrees to have the DC taxes withheld, and if there is no law or reciprocal agreement at the place of such employ-ment which already requires WITHHOLDING on nonresident fed-eral or payors are required to notify OTR in writing if they intend to:1. Go out of business;2.

9 Change their address;3. Change their entity name; or4. Change their ownership or RESPONSIBILITIES1. Immediately, upon receipt of this booklet, apply for your FEIN if you do not already have a When a DC resident starts in your employ, you should receive a DC WITHHOLDING Allowance Certificate, DC Form D-4 from that employee. If a DC RESIDENT EMPLOYEE fails to furnish a certificate, the employer is required to with-hold DC INCOME tax as if the employee had not claimed any WITHHOLDING allowances. An employer or payor is required to withhold DC INCOME tax from all DC resident employ-ees or payees even if not required to withhold federal INCOME tax from certain employees or payees who certify that they have no federal INCOME tax liability because of minimal taxable INCOME .

10 An employer or payor shall base WITHHOLDING for an employee or payee on zero WITHHOLDING exemptions if the Mayor notifies an employer or payor that 1) the employee or payee has an unpaid tax liability; 2) the employee or payee failed to file DC INCOME taxes; or 3) the employee or payee is subject to a tax refund interception request. If the three conditions do not apply, the employer or payor may apply to the Mayor to authorize an increase in the number of WITHHOLDING exemptions to the level at which they would not have resulted in an underpayment of the taxpayer s most recent INCOME tax return. DC RESIDENT EMPLOYEE includes individuals who are receiving wages and who have a place of abode or who are residing or domiciled in DC at the time the INCOME tax is required to be withheld.