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Rules for the deposit of withheld income tax

The Puerto Rico Treasury Department has issued the Administrative Determination No. 18-14 establishing the new income tax

This Administrative Determination has the objective of simplifying the income tax withheld deposits rules and effective January 1, 2019, the Puerto Rico Department of Treasury determines to standardize the current rules to those established by the IRS and abolish the CC RI 07-05.

Monthly depositor

New employers and employers that reported income tax withholding of $50,000 or less during the lookback period, generally must make only monthly deposits for the entire calendar year.  The monthly deposit must be made on or before the 15th day of the following month. 

The lookback period is the 12-month period ending on June 30th of the prior year. For example, for calendar year 2019, the twelve-month lookback period is July 1, 2017 thru June 30, 2018.

Semiweekly depositor

An employer that reported income tax withholdings of more than $50,000, during the lookback period.  Such employers must make deposits on or before Wednesday or Friday depending on the timing of their payrolls.


Payment day

Deposit day

Wednesday, Thursday or Friday

Next Wednesday

Saturday, Sunday, Monday or Tuesday

Next Friday

Exceptions

De Minimis Rule

If an employer’s income tax withholdings for a return period are less than $2,500, no deposits are required and the tax can be paid with the quarterly return.

Next Day Deposit Rule

If a monthly or semiweekly depositor accumulates income tax withholdings of $100,000, or more during a deposit period, the taxes must be deposited by the next business day.  A monthly depositor who must make a one-day deposit, cease to qualify as a monthly depositor and from that moment on, the employer becomes a semiweekly depositor.

Links-

Determinación Administrativa Núm. 18-14

*Note for an English version of this link, you can right click your mouse and select translate.  A formal English version of this publication is not available yet.

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