2.0% Wage Tax

Employer’s Responsibility
Two Percent Wage Tax

(Utulei)  On March 18, 2011 Governor Togiola T.A. Tulafono signed into law legislation for a 2% tax on wages. This is in addition to the current income tax. This Wage Tax is effective as of January 1, 2011.

Employer’s Responsibilities

Withholding: Employers should withhold an additional 2% on wages. Employees subject to the 4% minimum tax should have an additional 2 % withheld for a total withholding of 6%. Employees subject to the regular tax and use the tax tables they will have the tax withheld using the withholding tax tables and add an additional 2% of their wages.

Paying The Tax: Employers will use ASG 370 American Samoa Depository receipt. Rules concerning when to make deposits are contained on ASG Form 369, Employer’s Quarterly Tax Return.

Filling: Form 369 is required to be filed by April 30, July 31, October 31 and January 31 Employer’s are asked to make a memorandum entry of the amount of Wage Tax on the top portion of Form 369. The amount on line 2, amount of tax withheld, will be the total of the income tax withheld and the wage tax withheld.

Employee’s Responsibilities

Filling and Paying: The wage tax will be added to the income tax and filed on Form 390, A.S. Individual Income Tax Return for the year 2011 filed in 2010. Additional lines will be added to the 2011 Form 390 for this calculation.

Please contact the Tax Office at (684) 633-4181 if you have questions regarding the wage tax.