Income tax withholding; employer penalties. (SB230)

Introduced By

Sen. Kenneth Alexander (D-Norfolk)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Income tax withholding; employer penalties. Codifies provisions in the current general appropriation act that (i) require all employers to electronically file withholding tax returns and (ii) require the annual withholding tax return and employee withholding statements be furnished to the Department of Taxation by January 31 (which date appears in the Code of Virginia as February 28). The general appropriation act allows a waiver from each requirement if the Tax Commissioner finds it creates an unreasonable burden on the employer. The bill establishes new penalties on employers for not filing electronically or not furnishing employee withholding statements by January 31. A penalty of $5 per month is imposed for each delinquent employee withholding statement, not to exceed $30 per withholding statement. A penalty is also imposed for not filing employee withholding statements electronically, at a rate of (i) $5 per employee statement for employers with not more than 50 employees, (ii) $10 per statement for employers with more than 50 but less than 100 employees, and (iii) $20 per statement for employers with 100 or more employees. The bill applies to withholding tax returns and employee withholding statements relating to taxable years beginning on or after January 1, 2016. Read the Bill »

Status

03/14/2016: Passed the General Assembly

History

DateAction
01/06/2016Prefiled and ordered printed; offered 01/13/16 16100744D
01/06/2016Referred to Committee on Finance
01/19/2016Impact statement from TAX (SB230)
01/26/2016Reported from Finance (15-Y 0-N) (see vote tally)
01/27/2016Constitutional reading dispensed (40-Y 0-N) (see vote tally)
01/28/2016Read second time and engrossed
01/29/2016Read third time and passed Senate (40-Y 0-N) (see vote tally)
02/03/2016Placed on Calendar
02/03/2016Read first time
02/03/2016Referred to Committee on Finance
02/04/2016Impact statement from TAX (SB230)
02/16/2016Assigned Finance sub: Subcommittee #1
02/17/2016Subcommittee recommends reporting with amendment(s) (9-Y 0-N)
02/22/2016Reported from Finance with substitute (22-Y 0-N) (see vote tally)
02/22/2016Committee substitute printed 16105604D-H1
02/23/2016Read second time
02/24/2016Passed by for the day
02/25/2016Read third time
02/25/2016Committee substitute agreed to 16105604D-H1
02/25/2016Engrossed by House - committee substitute SB230H1
02/25/2016Passed House with substitute BLOCK VOTE (99-Y 0-N)
02/25/2016VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
02/25/2016Reconsideration of House passage agreed to by House
02/25/2016Passed House with substitute BLOCK VOTE (100-Y 0-N)
02/25/2016VOTE: BLOCK VOTE PASSAGE #2 (100-Y 0-N) (see vote tally)
02/29/2016House substitute rejected by Senate (0-Y 38-N) (see vote tally)
03/01/2016House insisted on substitute
03/01/2016House requested conference committee
03/02/2016Senate acceded to request (40-Y 0-N) (see vote tally)
03/02/2016Conferees appointed by Senate
03/02/2016Senators: Alexander, McDougle, Vogel
03/02/2016Conferees appointed by House
03/02/2016Delegates: Bloxom, Hugo, Keam
03/09/2016C Amended by conference committee
03/10/2016Conference report agreed to by Senate (40-Y 0-N) (see vote tally)
03/10/2016Conference report agreed to by House (95-Y 0-N)
03/10/2016VOTE: ADOPTION (95-Y 0-N) (see vote tally)
03/11/2016Enrolled
03/11/2016Bill text as passed Senate and House (SB230ER)
03/11/2016Signed by Speaker
03/14/2016Signed by President
03/16/2016Enrolled Bill Communicated to Governor on 3/16/16
03/16/2016G Governor's Action Deadline Midnight, Sunday, April 10, 2016

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 2 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.

SENATE BILL 230 PASS THE THE HOUSE WITH A SUBSTITUTE. THE SENATOR FROM NORFOLK, I ASK THAT WE REJECT THE SENATOR ALEXANDER. HOUSE SUBSTITUTE. SPEAKING TO THAT MOTION. THE SENATOR HAS THE FLOOR. MR. PRESIDENT, SENATE BILL 230 LEFT THIS CHAMBER THAT WOULD ALLOW THE TAX DEPARTMENT TO PUT SOME PENALTIES ON BUSINESSES THAT ARE LATE IN FILING THEIR W-2 TO CATCH FRAUDULENT TAX RETURNS. BY HAVING THE W-2 IN HAND IS THE BEST PRACTICE TO CATCH FRAUDULENT TAX RETURNS. I RENEW MY MOTION THAT WE REJECT THE AMENDMENT.

Del. Bill Howell (R-Fredericksburg): WITH THE RECOMMENDATION THAT IT BE REJECTED THE QUESTION IS SHALL THE SUBSTITUTE ABOUT I AGREED TO. ALL IN FAVOR OF THE MOTION WILL. ARE THE SENATORS READY TO VOTE? HAVE ALL THE SENATORS VOTED? DO ANY SENATORS DESIRE TO CH ANGE THEIR VOTE? THE CLERK WILL CLOSE THE ROLL.

[Unknown]: AYES 0, NOS 38. AYES 0, NOS 38. THE SUBSTITUTE IS REJECTED. SENATE BILL 493 PASSED THE