Key figures
Utah payables
2026, with sources
1099s and use tax
Utah wants only the Forms 1099 that show Utah withholding, filed electronically with the annual withholding reconciliation by January 31. Payments to nonresident contractors carry no state withholding requirement.
Because Utah taxes prewritten software used in Utah however it is delivered, software and SaaS bought from vendors that don’t collect Utah tax owe use tax, reported on the sales tax return or, without a sales tax account, on a use tax return.
Contractors
For unemployment insurance, DWS treats a worker as an employee unless the worker is independently established in the trade and free from the company’s control. The federal and DWS answers usually agree, but DWS audits on its own.
A reclassified worker brings back unemployment contributions on a $50,700 wage base — one of the higher ones in the country — so a misclassification in Utah costs more per worker than it would in most neighboring states.
An example
A Provo startup pays a freelance designer $30,000 and subscribes to three SaaS tools from vendors that don’t collect Utah tax. The designer gets a federal 1099-NEC; Utah wants no copy, because nothing was withheld. The three subscriptions, used in Provo, owe Utah use tax at the combined rate where they are used, reported on the company’s sales and use tax return.
Use tax on software is the line most often missing from a small Utah company’s return. It is also easy to fix going forward: many vendors will start collecting once given a Utah address and asked.
The federal baseline
This page covers what Utah adds. The federal rules underneath it apply here too.
Common questions
Do we owe use tax on SaaS we buy?
Yes, if the vendor didn’t charge Utah tax. Prewritten software used in Utah is taxable however it is delivered, including SaaS, and the buyer owes use tax at the rate where the software is used.
Which contractor test does Utah use?
Utah has no ABC test. DWS decides employee status for unemployment insurance by looking at whether the worker is customarily engaged in an independent business and free from the company’s control.
Payables next door
- IDIdaho payablesIdaho requires a copy of every 1099-NEC for services performed in Idaho by the end of February, and charges 6% use tax on untaxed goods but not on SaaS or downloaded software.
- WYWyoming payablesWyoming has no state 1099 filing; use tax applies to downloaded and boxed prewritten software but not to SaaS, PaaS or IaaS, which Wyoming doesn’t tax.
- COColorado payablesColorado wants only 1099s that show Colorado withholding, by Jan 31. Use tax applies to untaxed purchases, and home-rule cities can tax software the state doesn’t.
- AZArizona payablesArizona collects 1099s that show Arizona withholding with the A1-R by Jan 31, offers a statutory contractor declaration, and charges use tax on untaxed SaaS.
- NVNevada payablesNo state 1099s and no contractor withholding. What reaches payables in Nevada is use tax on tangible goods bought without Nevada tax.
- NMNew Mexico payablesVendors pass gross receipts tax through on services, and purchases without it owe compensating tax. 1099s with New Mexico withholding go to TRD.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
More of the Utah guide
- AccountingAccounting and state tax in UtahCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in UtahSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in UtahWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in UtahRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in UtahCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.