43-419. Electronic remittance and filing required by payroll service company; penalty; definitions

A. For withholding tax returns due to be filed from and after May 31, 2011, a payroll service company remitting amounts due as prescribed in section 43-401, subsection C on behalf of a client shall make all payments electronically. If a payroll service company remits a payment in a manner other than electronically, the payroll service company shall pay a penalty in the amount of twenty-five dollars per client, per payment, unless it is shown that the failure to pay electronically is due to reasonable cause and not due to wilful neglect.

B. For withholding tax returns due to be filed from and after May 31, 2011, a payroll service company reconciling amounts payable during the preceding quarter in accordance with section 43-401, subsection C on behalf of a client shall file all required quarterly returns electronically. If a payroll service company files a required quarterly return in a manner other than electronically, the payroll service company shall pay a penalty in the amount of twenty-five dollars per client, per return, unless it is shown that the failure to file electronically is due to reasonable cause and not due to wilful neglect.

C. For withholding tax returns due to be filed from and after May 31, 2011, a payroll service company filing an annual payment return as allowed by rule and in accordance with section 43-401, subsection C on behalf of a client shall file all required annual returns electronically. If a payroll service company files a required annual return in a manner other than electronically, the payroll service company shall pay a penalty in the amount of twenty-five dollars per client, per return, unless it is shown that the failure to file electronically is due to reasonable cause and not due to wilful neglect.

D. For the purposes of this section, " client" , " payroll service company" and " person" have the same meanings prescribed in section 43-418.