Utah General Contractors - Business and Law Practice Exam

Employers outside of Utah who pay wages to Utah residents must also comply with:

1. Federal tax laws only

2. Utah State Tax Commission regulations

3. Only local employment ordinances

4. No specific obligations

The correct answer is: Utah State Tax Commission regulations

Employers outside of Utah who pay wages to Utah residents must comply with Utah State Tax Commission regulations because these laws govern how income earned by Utah residents is taxed, regardless of the employer's location. When employees reside in Utah, their income is subject to the state tax laws, which include requirements for withholding taxes and reporting income to the Utah State Tax Commission. This ensures that the state's tax revenue is maintained and that residents are treated fairly in terms of their tax obligations. Employers must register with the Utah State Tax Commission and follow all relevant regulations, which might involve withholding state income tax from wages and making periodic tax payments. While federal tax laws are applicable to all employers, and local employment ordinances may also play a role in some cases, they do not supersede the specific obligations imposed by the Utah State Tax Commission for wages paid to residents. This is why compliance with state regulations is essential for employers operating outside of Utah but paying employees who reside in Utah.