LOOKBACK PERIOD
Withholding filing methods are determined using a "lookback period". This lookback period is from July 1 to June 30 in the year immediately preceding the calendar year for which the lookback period is being determined.
For instance, the lookback period for calendar year 2007 withholding is July 1, 2005 through June 30, 2006. The Division of Revenue looks at this time annually to determine how much tax you’ve reported. The amount you’ve reported determines whether you will have to remit your withholding monthly, quarterly or eight times a month.
The withholding thresholds are listed below:$3600 or less remits Quarterly
$3600.01 to $20,000 remits Monthly
$20,000.01 and greater remits 8th Monthly
Please note: Those with no prior record of withholding will file on a monthly basis until the next "lookback period".
