Employee's Quarterly Withholding and Annual Reconciliation
The Employee’s Quarterly Withholding (Form QCC1) is due by the last day of the month after the end of each quarter. The Annual Reconciliation of Payroll License Fees Withheld (Form KC-AR) is due annually by February 28th.
Employers who have compensated an employee with wages, salaries, commissions or any other form of remuneration paid for services performed by an employee are required to complete a/an:
- Employee’s Quarterly Payroll Withholding (Form QCC1)
- Annual Reconciliation of Payroll License Fees Withheld (Form KC-AR)
Important Note: Withholding applies to total gross earnings prior to any deductions for, but not limited to, Section 125 plan, 401(k), cafeteria benefit plan, or other deferred compensation or pension plans. In addition, the total compensation to officers of corporations is subject to withholding tax.
The Employee’s Quarterly Withholdings must be filed even if:
- An occupational license was obtained during the year, but there was no employee activity or business activity in Kenton County or cities. Write “No Activity” or “Zero Returns” on Form QCC1.
- Employee activity ceased prior to the beginning of the tax year but you have not provided written notification that operations ceased. Write “No Activity” or “Zero Returns” on Form QCC1.
- Employee activity ceased during the year in question. Gross Compensation earned for that portion of the year the employee(s) worked must be reported and any “Fee Due” paid.
See below for the quarterly withholding and annual reconciliation filing schedule.
Form | Quarter | Month Wages Were Withheld | Due Date |
|---|
QCC1 | 1 | January, February, March | April 30 |
QCC1 | 2 | April, May, June | July 31 |
QCC1 | 3 | July, August, September | October 31 |
QCC1 | 4 | October, November, December | January 31 |
KC-AR | 1, 2, 3, 4 | January through December (12 months) | February 28 |