Domestic employers may elect to report quarterly wages and pay unemployment insurance contributions annually. Eligible employers must have domestic-only employment. Employers are not eligible for annual filing if they have more than one type of employment. Employers who are eligible may file election form (Form C-20, Election by a Domestic Employer to Report Quarterly Wages and Pay Taxes on an Annual Basis) by December 31 to begin filing annually for the next year.
The employment must be domestic only. Domestic employers that have more than one type of employment are not eligible to file on an annual basis. If an election is received from an employer that has some other type of employment, send the employer the letter explaining the domestic-only criteria. Place a file copy of the letter in the D L & D (Document Log & Destroy) basket and update the FTC screen to document the actions.
All Domestic employers must report quarterly for their first year of liability and are not eligible to report annually until their second year of employment. For example, a domestic-only employer that became liable in 2010 would have until December 31, 2010, to submit Form C-20 to elect to file annually for 2011.
If an election is received by an employer to report on an annual basis for their first year of liability, approve the election for the following year. Mark through the "year" section on Form C-20 and put the eligible year and initial it. Make a copy of the amended C-20. Send a letter of explanation to the employer, along with a copy of the amended C-20. Place a file copy of the letter and the amended C-20 in the D L & D basket and update the FTC screen to document actions.
A change to annual filing status is effective only at the beginning of a calendar year. An
employer may not change their method of filing in the middle of a year. A domestic employer electing
to report on an annual basis must submit Form C-20, by December 31 of the year prior to the year
they wish to report on an annual basis. If the election form is not received by December 31,
the employer must continue filing reports and making tax contributions quarterly. The status
section uses the Postmark date to determine when the election form was received.
If notification is not submitted timely, approve the election for the following year. Mark
through the “year” section on Form C-20 and put the eligible year and initial it. Make
a copy of the amended C-20. Send a letter of explanation to the employer, along with a copy
of the amended C-20. Place a file copy of the letter and the amended C-20 in the D L & D
basket and update the FTC screen to document actions.
Domestic employers are required to remain with an annual reporting method for a minimum of two
calendar years. Domestic employers are not permitted to switch their method of reporting
every year.
If an employer requests their method of reporting be changed back to quarterly, prior to the two calendar
years, the request should be denied. See Withdrawal Election Process (Sec 9.8.8).
Employers are required to submit Form C-20 if they desire to change their method of reporting
to an annual basis. Initial notification does not have to be on the official Commission form. As
long as an employer notifies the Commission timely and in writing, their right to report on an
annual basis is preserved.
If timely notification is received on an unofficial form:
After reviewing the account for eligibility, make sure the employer has not already elected to
file on an annual basis. If there is an asterisk next to the DOM section on the EMF screen,
that means the employer is already reporting on an annual basis or has at one time reported on
an annual basis.
Review the Status of Annual Domestic (SID) screen to determine if the employer is already approved to
report annually by reviewing the effective date and whether or not the annual election has been revoked.
If the employer is already approved for the annual reporting method, you may discard Form C-20, as long as it has already been imaged.
If the SID screen indicates the employer was revoked from the annual filing option, you can process form C-20 as long as you have determined the employer is now eligible for the annual filing option. If the SID screen indicates the employer has withdrawn their election to report on an annual basis, you can process the C-20, if the two calendar year minimum has been met since the effective date of the revocation. More information on the withdrawal and revocation of an election to report annually can be found in Withdrawal Election Process and the Revocation Election Process section.
Approving the Annual Election
Once the account has been reviewed, approve the election via the Domestic Annual Filers (SAD) screen.
EID EFF YR RC
______ ____ __
Key the account number under “EID”, the year the annual filing option has been approved for under “EFF YR” and the number “1” (APPLICATION IS APPROVED) under RC. Press <ENTER>.
You can than review the EMF screen because the asterisk will appear next to DOM on that account indicating to users that the account has annual filing history. The actual switch to an annual filing option is an overnight process.
At the end of March of each year, the Status Section Manager will send an automation request requesting that all domestic employers that have been approved for that year be sent a letter advising each employer that their election has been approved. This notification process has to be completed before the first quarter employers quarterly report becomes due. These approved employers will not be receiving those reports and need to know of their annual filing status.
Employers with an annual filing status are permitted, with Commission Approval, to switch their method of reporting back to quarterly by submitting Form C-20F, Application By A Domestic Employer For Withdrawal of Election To Report Quarterly Wages And Pay Taxes On An Annual Basis. It is the Status Section’s responsibility to make this change.
An annual filer may change their method of reporting back to quarterly if they have been an annual filer for at least 2 years. If form C-20F is received prior to the two year minimum, send the employer a letter explaining the 2 year minimum requirement. Place a copy of the letter in the DL & D basket and update the FTC screen to document the actions.
A change to annual filing status is effective only at the beginning of a calendar year. An employer may not change their method of filing in the middle of the year. A domestic employer approved to report on an annual basis must submit Form C-20F, by December 31 of the year prior to the year they wish to file on a quarterly basis. If the election form is not received by December 31, the employer must continue filing reports and making tax contributions on an annual basis. The status section uses the Postmark date to determine when the election form was received.
If the notification to withdraw is not timely, approve the withdrawal for the following year. Mark through the "year" section on Form C-20F and put the eligible year and initial it. Make a copy of the amended C-20F. Send a letter of explanation to the employer, along with a copy of the amended C-20F. Place a file copy of the letter and the amended C-20F in the D L & D basket and update the FTC screen to document actions.
Employers are required to submit Form C-20F if they desire to change their method of reporting back to a quarterly basis. Initial notification does not have to be on the official Commission Form. As long as an employer notifies the Commission timely and in writing, their right to report on a quarterly basis is preserved.
If timely notification is received on an unofficial form Send the employer a dictated letter enclosing two Form C-20F’s, place the file copy of the letter in the D L & D basket, and update the FTC screen to document the actions.
Trace the account.
Review the effective date on the SID screen, to determine if the withdrawal request has met the two year minimum criteria for approval.
If the SID screen indicates the employer has not met the two year minimum, send the employer a dictated letter explaining the two year minimum. Place the file copy of the letter in the D L & D basket and update the FTC screen to document your actions.
Withdrawal of The Annual Election
Once the account has been reviewed, withdraw the election via the SAD screen.
EID EFF
YR RC
___ ______ _____
Key the account number under “EID”, the year the withdrawal of the annual filing option has been approved for under the “EFF YR” and the number “2” (Employer Withdraws), under RC. Press <ENTER>. The SID screen will update immediately, indicating the effective date of the withdrawal along with the annual filing history. The actual switch to a quarterly filing option is an overnight process.
Send the employer a letter indicating their election to switch back to quarterly filing has been approved. Include a quarterly reporting form, if necessary. Place the file copy of the letter in the D L & D basket and update the FTC screen to document your actions.
In order to maintain the annual election status, the employer must remain a domestic-only employer. If
a domestic employer adds another type of liability to their account, the annual election status
must be revoked. It is the responsibility of the Status Section to process the revocation.
Notification of another type of employment.
The employer will sometimes notify the Tax Department of the addition of regular or agricultural employment
to their account but often times it is discovered by review of the account by the field or by status
personnel or by mere circumstance.
Processing the Revocation
Upon discovering the additional liability, the annual filing option can be revoked in the present
year only. You cannot revoke an annual election back to a previous year. To revoke
the election you must utilize the SAD screen.
EID EFF YR RC
____ _____ ___
Key the account number under the “EID”, the year the annual filing option is being
revoked under “EFF YR” and the number “3” (Tax Revoked Application) under
RC to revoke the annual election. The revocation is an overnight process but will appear
under the “SID” screen immediately. The asterisk indicating the account had
domestic employment at one time will be present for the life of the account.
Update the FTC screen about revocation reason.
Send an email to the Rates Unit Global address (Tax Experience Rating) and the Status Operations
unit that the annual filing status has been revoked.
The next day, the Status Operations Unit will receive a computer generated revocation letter. The
Status operations unit will deliver the letter to the AE. The AE will review the letter and
mail along with employers quarterly reports, if needed.
When an account has had the annual election revoked, in some cases, the system will not allow changes to be made to the STA screen. In those instances, changes must be made via C-10.
