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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 9. TAXATION AND ASSESSMENTS |
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Chapter 9-1. INCOME AND FRANCHISE TAXES |
Section 9-130. WITHHOLDING: GENERAL PROVISIONS
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130.1Each employer [as defined in § 3401(d) of the U.S. Internal Revenue Code of 1986 as amended (hereafter “IRC of 1986”)] making payment of wages subject to withholding, shall deduct, withhold, and pay over to the Deputy Chief Financial Officer of the Office of Tax and Revenue (“DCFO”) the tax required to be withheld.
130.2Entities that make non-wage payments subject to required or voluntary withholding, including but not limited to, payments of pension, military retirement, gambling winnings, voluntary withholding on certain government payments, and backup withholding, shall deduct, withhold and pay over the tax withheld to the DCFO.
130.3Wages subject to withholding are all wages as defined in § 3401(a) of the IRC of 1986, paid, by an employer who is required to withhold taxes under the law, to an employee, for services performed within or outside the District.
130.4An employee shall not include any of the following individuals, unless the individual is domiciled within the District at any time during the taxable year:
(a) An elected official of the government of the United States;
(b) An employee on the staff of an elected officer in the legislative branch of the government of the United States if that employee is a bona fide resident of the State of residence of the elected officer;
(c) An officer of the executive branch of the U.S. government whose appointment to the office held was by the President of the United States and subject to confirmation by the Senate of the United States, and whose tenure of office is at the pleasure of the President of the United States; or
(d) A Justice of the Supreme Court of the United States.
130.5When the last date for the payment of a tax falls on a Saturday, Sunday, or a legal holiday, the last date for paying the tax shall be the first business day following that Saturday, Sunday, or holiday.
130.6When the last date for filing a return falls on a Saturday, Sunday, or a legal holiday, the last date for filing the return shall be the first business day following that Saturday, Sunday, or holiday.
130.7In determining the amount to be deducted and withheld, the wages may, at the election of the employer, be computed to the nearest dollar.
130.8If the remuneration paid by an employer to an employee for services performed during one-half (1/2) or more of any payroll period of not more than thirty-one (31) consecutive days constitutes wages, all the remuneration paid by the employer to that employee for that period shall be deemed to be wages.
130.9If the remuneration paid by an employer to an employee for services performed during more than one-half (1/2) of any payroll period of not more than thirty-one (31) days does not constitute wages, then none of the remuneration paid by the employer to that employee for that period shall be deemed to constitute wages.
130.10All employers or entities required to withhold tax must have a Federal Employment Identification Number (FEIN) and be registered with the Office of Tax and Revenue and have a valid account registration number. The employer or entity’s FEIN and account registration number must be included on all withholding tax returns, regardless of who files the tax return (including returns filed by payroll processing companies on behalf of customers). Failure to obtain an FEIN and account registration number, or failure to include both an FEIN and account registration number when filing a withholding tax return or making a withholding tax payment may result in the rejection of the return or payment and trigger penalties under D.C. Official Code § 47-4213.
130.11Where an employer or entity required to file withholding tax returns and make withholding tax payments contracts with a payroll processing company or bulk filer of withholding tax returns and payments, the responsibility for withholding tax compliance remains with the employer or entity.