After I register as an employer in the District of Columbia, how and when do I report my employees?
Employers are required to file an Employer's Quarterly Contribution and Wage Report (Form UC-30) each quarter. Employers may now submit their quarterly reports on magnetic media [PDF].
Employers who only employ household help have the option to file wage information and pay contributions on an annual basis using Employer's Annual Contribution and Wage Report (Form UC-30H). Household employers should read the Annual Filer Fact Sheet [PDF] before selecting a filing schedule.
- Quarterly filers are mailed UC-30s near the end of each quarter.
- Quarterly reports are due on April 30, July 31, October 31 and January 31.
- Annual filers receive an optional UC-30H-WORKSHEET [PDF] early in the calendar year that can be used to record monthly employment levels and wages paid to each employee during each quarter of that calendar year. This information is still needed to complete the required UC-30H. The UC-30H form will be sent to annual filers in January of each year to be completed for the prior calendar year.
- The UC-30H is due on or before April 15 following the end of the tax year.
- Both quarterly and annual reporting forms are pre-printed with the employer name and address, account number, quarter and year to be reported, due date and tax rate to be used in computing the tax due.
What records should I keep to comply with unemployment tax requirements?
Each employer must maintain accurate and up-to-date records on all employees. Retained payroll sheets, cards, or other forms maintained by an employer in the usual course of business shall constitute sufficient work records, provided that the records contain the following information:
- Name and social security number of each employee.
- Beginning and ending dates of each payroll period, and the date of payment.
- Wages paid for each pay period, including the cash value of other remuneration, gratuities and tips, and expenses incurred by each employee for which a deduction from wages is claimed.
- Dates of employment and the date and reason for separation.
Records should be retained for up to seven years.
Do I have to file a report for a quarter when I do not have employees?
Yes. As long as you are still in business you must file a Contribution and Wage Report when it is due. If no wages are paid during a quarter, you must file a timely report indicating no remuneration was paid during the quarter. This is known as a zero wage ($0) report. If you are going out of business you should advise DOES of that change on the last Contribution and Wage Report that you submit. If we do not know that you have gone out of business or do not receive a "zero wage" report for quarters when you do not have employees, the automated system will assume that the expected report is missing and will initiate collection action.
Can Employer Contribution and Wage Reports be filed electronically?
Employers may now submit quarterly Contribution and Wage Reports on magnetic media (CD, diskette) using the ICESA format. Many employers and fiscal agents already use this national standard for reporting to other states. Reporting on magnetic media eliminates the need to print and mail a UC-30 form. For more information on reporting using the ICESA format [PDF].
At this time, employers who have more than 250 employees are required to submit the wage portion of their reports on magnetic media (cd or 31/2'' diskette). All employers are encouraged to submit their contribution report and their wage data on magnetic media. The Department is working toward providing additional ways to file contribution and wage reports. Future plans include report filing and payment online. In addition, employers will be able to use the phone and go online to access their account information to make changes in account address information. Future developments will be posted at this website.
What should I do if I fail to receive the forms for quarterly or annual reporting?
Please request a duplicate form from the Tax Division, Office of Unemployment Compensation. The phone number is (202) 698-7550 or if calling long distance, (877) 319-7346. Failure to receive a quarterly or annual reporting form does not relieve the employer of the responsibility for filing a report.
Is there a penalty for not filing on time?
Reports and/or taxes that are not submitted on time are subject to penalty and interest. The interest rate is 1.5 percent of the tax due per month or fraction thereof, until paid. The penalty is 10 percent of the tax due, but not less than $100.
Employers who pay their DC unemployment taxes on time receive a tax credit of 90 percent of their federal unemployment tax. Failure to pay DC unemployment taxes on a timely basis will reduce the tax credit and result in a higher tax obligation to the Internal Revenue Service.
I have employees who perform services in the District of Columbia and one or more other states. Where should I report them?
If you have employees who perform services both in the District of Columbia and one or more other states, application of the following guidelines will determine whether you should report such employees to the District of Columbia:
- Is the employee's service localized in the District of Columbia? Localization occurs when service performed outside of the District of Columbia is incidental in nature. Service is considered incidental if it is temporary or transitory in nature, or consists of isolated transactions.
- If the employee's service is not localized in the District of Columbia or another state, is the employer's base of operations located in the District of Columbia?
- If the employee's service is not localized in the District of Columbia, and the employer's base of operations is not located in the District, is the employee's service directed or controlled from the District?
- If none of the above conditions exist, is the employee a resident of the District of Columbia?
If any of these conditions are present, all wages should be reported to the District of Columbia. If these conditions are more applicable to another state in which service is being performed, the wages should be reported to that state.
I pay employee share of health care premiums. Do I report that as wages?
When the employer makes payment of the employee's share of health care premiums, the amount paid is considered wages and should be reported as part of the employee's gross wages. When the employer makes payment of the employer's share of the employee's health care premiums, the amount paid is not considered wages and should not be reported as part of the employee's gross wages.
I lease employees from a leasing company. Do I report the wages of the employees or does the leasing company report the wages?
The company that signs the paycheck and withholds local and federal taxes is the employer that is liable for reporting wages and paying unemployment taxes. Please contact the Tax Division if additional information on a co-employment arrangement is needed.
Do I pay unemployment taxes to the state where my employee lives?
No. Unemployment tax is paid to the state where the service is performed.
What is the Administrative Funding Assessment?
The District enacted legislation that requires all liable employers to pay an administrative assessment of two-tenths of one percent (0.2%) to support the administration of the District’s Unemployment Insurance (UI) Program. The assessment first began for wages reported for the quarter that ended March 31, 2006. The assessment is payable by both rated (contributory) and reimbursable employers on the first $9,000.00 of wages paid to each employee during a calendar year. In terms of dollars, the assessment amounts to a maximum payment annually of $18 for each employee.
For rated employers, this administrative assessment is in addition to their regular UI tax/contribution. It is due by the same date as their regular UI tax and may be included as a single payment. Reimbursing employers will receive a bill each quarter for the administrative assessment due. The bill will be mailed after their quarterly wage report is processed.
Rated/contributory employers should note the following important point: Only the amount paid in regular UI taxes/contributions may be reported to the Internal Revenue Service (IRS) on Form 940.
Office of Unemployment Compensation - Tax Division
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Monday to Friday 9 am to 4:30 pm