I noticed that the change in NY SUTA taxable wage base from $12,500 to $12,800 did not make the 2025 update above.  Is there a master list of rates across all taxes available that can be shared?  The updates are helpful to see coming, a master list would provide convenience to the payroll users.  

When you have multiple companies in a tenant, how do you enter separate unemployment rates for each company since the tax rates are in one setup screen?

Please see and up-vote this Idea.  Currently not available, but is in the works.

Hi wkappauf,

NY Unemployment taxable wage base was increased for 2025 on December 5, 2024.  I somehow missed it on the update. My apologies!  

Sonia Echols

​@leahh64 the current workaround is to go to the Employee Payroll Settings>Taxes>Select SUTA code. To the right of the code is a tax settings section applicable to that code where you can override the SUTA rate on an employee by employee basis. 

Release date 2025/01/21 - Update 2 (2.36)

Release date 2024/12/30 - Update 1 (1.35)

Previous year

​

Release: 2025-3.37.0           Update: February 13, 2025

Upgrade

PX.Payroll.dll error when publishing Customizations – effective 2/13/25

Addressed an issue that could occur when publishing customizations after an upgrade, as detailed in the community post, Error Loading PX.Payroll.dll when publishing Customizations in 2022 R1 - Problem and Solution | Community.

Canada

Federal

CPP/QPP Second Ceiling Flags – effective 2/13/25

Flags used to calculate the second ceiling for CPP/QPP that were added as part of June 19, 2024, Tax Update have been removed from Employee Payroll Settings ~ TAXES (PR203000).  These amounts will be tracked automatically.

T4 – effective 2/13/25

Added missing T4 XML tags to Canadian reporting types for:

• 53(Deferred security option benefits),
• 90 (Security options benefits – On or after June 25, 2024) Note: 90 is for Canada Revenue Agency use only and is already included in box 14,
• 91 (Security options deduction 110(1)(d) – On or after June 25, 2024) Note: Code 91 do not need to be reported in box 14,
• 92 (Security options deduction 110(1)(d.1) – On or after June 25, 2024) Note: Code 92 do not need to be reported in box 14,
• 94 (Indian (exempt income) – RPP contributions) Note: Do not include this amount in box 14, and 95 (Indian (exempt income) – Union dues) Note: Do not include this amount in box 14.

United States

Federal

Simple IRA Secure 2.0 – effective 1/1/25

Corrected the deferral limit for 2025 to $17,600.

W-2 Box 12W – effective 2/13/25

A correction has been made so that if the employee’s HSA contribution is mapped to Box 12W - Employer contributions to a Health Savings Account (HSA) (including employee contributions through a cafeteria plan) on the W2 Form this information will flow to Aatrix to create the W-2s.

W-2 Box 13 – effective 2/13/25

The Employee Payroll Settings ~ TAX SETTINGS (PR203000) have been updated to include Form/Box information for Statutory Employee, Has Retirement Plan, and Has Third Party Sick Pay. These flags populate Box 13 of the W-2 Form.

All States

State Income Tax Exempt – effective 2/13/25

Employees can be marked as exempt by selecting the Is Exempted Flag under Employee Payroll Settings ~ Taxes~ Tax Settings for the state SIT selected. The flag Employee is exempt from state withholding under Employee Payroll Settings ~ Tax Settings is no longer an option.

Delaware

Unemployment Tax – effective 1/1/25

The taxable wage base increased to $12,500.

Training Tax – effective 1/1/25

The tax rate decreased to .126% and the taxable wage base increased to $12,500.

Hawaii

Unemployment Tax – effective 1/1/25

The taxable wage base has been corrected to $62,000.

Employment Training Tax – effective 1/1/25

The taxable wage base has been corrected to $62,000.

Illinois

State Income Tax – effective 1/1/25

The value of a basic allowance (Form IL-W-4, Line 1) increased to $2,850.

Kentucky

Unemployment Tax – effective 1/1/25

The taxable wage base increased to $11,700.

Service Capacity Upgrade Fund (SCUF) – effective 1/1/25

The taxable wage base increased to $11,700.

Massachusetts

State Income Tax – effective 1/1/25

The threshold to begin calculating the 4% surtax increased to $1,083,150.

Mississippi

State Income Tax – effective 1/1/25

The tax decreased (for income over the first $10,000) to 4.4%.

New Hampshire

Unemployment Tax – effective 2/13/25

A new flag, “Calculate Tax by Wage Base” has been added to support mid-year tax rate changes.  Select to stop the calculation at the wage base limit instead of the tax limit. Otherwise, if a change is made midyear it may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

New Jersey

Employer State Disability Tax (SDI) - effective 2/13/25

A new flag, “Calculate Tax by Wage Base” has been added to support mid-year tax rate changes.  Select to stop the calculation at the wage base limit instead of the tax limit. Otherwise, if a change is made midyear it may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

Unemployment Tax – effective 2/13/25

A new flag, “Calculate Tax by Wage Base” has been added to support mid-year tax rate changes.  Select to stop the calculation at the wage base limit instead of the tax limit. Otherwise, if a change is made midyear it may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

New Mexico

Unemployment Tax – effective 1/1/25

The taxable wage base increased to $33,200.

North Dakota

State Income Tax – effective 1/1/25

• For the Percentage Method for Forms W-4 from before 2020:
  • The rates and thresholds have been updated in "Table 7- Annual Payroll Period" (page 4).
  • The value of an annual allowance increased to $5,050.
• For the Percentage Method for Forms W-4 for 2020 and after:
  • The rates and thresholds have been updated for all three filing statuses in the Annual Percentage Method Tables (page 42)

Reference: 2025 Income Tax Withholding Rates & Instructions

Ohio

Circleville City Tax – effective 1/1/25

The tax rate decreased to 2%.

Circleville-Pickaway Twp JEDD – effective 1/1/25

The tax rate decreased to 2%.

Fayette City Tax – effective 1/1/25

The tax credit decreased to 50%.

Genoa City Tax – effective 1/1/25

The tax credit limit decreased to .5%

Mingo Junction City Tax – effective 1/1/25

The Tax rate and credit limit increased to 2%.

Smithville City Tax - effective 1/1/25

The credit limit decreased to .5%.

Oregon

State Income Tax – effective 1/1/25

Effective January 1, 2025, the Oregon State Tax has been updated:

• The formula values, rates, and thresholds have been updated
• The federal tax adjustment increased to $8,500
• The value of an allowance increased to $256
• The single standard deduction increased to $2,835
• The married standard deduction increased to $5,670

Pennsylvania

Lancaster EITs – effective 1/1/25

• Lancaster City, Conestoga Valley School District
• Lancaster City, Lampeter-Strasburg School District
• Lancaster City, Lancaster School District

The following updates have been made to all three EITs for Lancaster:

• The municipal resident EIT rate increased to 1.1%
• The total resident EIT rate increased to 1.6%

Tennessee

Unemployment Tax – effective 2/13/25

A new flag, “Calculate Tax by Wage Base” has been added to support mid-year tax rate changes.  Select to stop the calculation at the wage base limit instead of the tax limit. Otherwise, if a change is made midyear it may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

U.S. Virgin Islands

Unemployment Tax – effective 1/1/25

The taxable wage base increased to $31,000.

Vermont

Catamount Healthcare Assessment Tax – Action Required - effective 1/1/25

The tax increased to $296.89 for each employee (after the first four employees).

Note: This tax is not supported and must be calculated manually.

Unemployment Tax – effective 2/13/25

A new flag, “Calculate Tax by Wage Base” has been added to support mid-year tax rate changes.  Select to stop the calculation at the wage base limit instead of the tax limit. Otherwise, if a change is made midyear it may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

Washington

Unemployment Tax – effective 1/1/25

The taxable wage base increased to $72,800.

Seattle Payroll Expense Tax – Action Required – effective 1/1/25

The tax rates and thresholds have been updated:

Reference: Payroll Expense Tax FAQs - Will the tax thresholds change?

Note: This tax is not supported and must be calculated manually.

West Virginia

Unemployment Tax – effective 1/1/25

The taxable wage base decreased to $9,500.

Release: 2025-4.38.0           Update: March 12, 2025

United States

Federal

Subject Wage on Wage Base - Effective March 12, 2025

Set Subject Wage on Wage Base will now default to true for all taxes with limits.  This flag is under Tax Maintenance ~ COMPANY TAX ~ FED.

This option allows customers to ensure that subject wages returned by the engine meet the following criteria:

1. Never exceed the wage base
2. Always reach the wage base if there have been sufficient wages to do so

When this option is set to false, it is possible that, in rare cases, subject wages returned by the tax engine could exceed the wage base.

Alabama

City Tax – effective March 12, 2025

We have resolved a potential issue regarding Alabama city taxes. If there were no supplemental wages reported for a specific city and benefit contributions caused the regular subject wages to drop below $0, a supplemental tax and subject wage amount may have been inaccurately reported.

County Tax – effective March 12, 2025

We have resolved a potential issue regarding Alabama city taxes. If there were no supplemental wages reported for a specific city and benefit contributions caused the regular subject wages to drop below $0, a supplemental tax and subject wage amount may have been inaccurately reported.

Hawaii

SDI – effective March 12, 2025

A new field titled "Period Subject Wages" was added to account for wages from a special (off-cycle) supplemental payment that took place during the same pay period as the regular payroll calculated for that period.

Indiana

County Tax -   effective March 12, 2025 (Updated March 13, 2025)

Resolved an issue where if an employee's resident county as of January 1 differs from their current home address county, the tax for the resident county as of January 1 will now be collected.  

NOTE:  This only works as expected if the resident county is present on the employee’s tax settings.

Workaround:
1) Add a dummy work location using the employee's former home address or the County Court Address.
2) Name the dummy work location to the county name such as "Dekalb County" so that if there’s another employee affected now or in the future you will only need one dummy work location for the county.
3) Run UPDATE TAXES under Tax Maintenace. This will ensure that the missing county appears on the tax maintenance screen.
4) Additionally, add the dummy work location to the impacted employee under employee payroll settings ~ general ~ work locations
5) Run Import under Employee Payroll Settings ~ TAXES to add the county to the employee's tax settings.

Kentucky

Adair County OLF – effective January 1, 2025

The Adair County OLF tax rate for 2025 has been updated from 0.25% to 0.5%. Initially, this tax was set at a rate of 0.5% for 2024 and 0.25% for 2025. However, the ordinance has been amended, and the tax rate will now remain at 0.5% for 2025.

Maryland

Anne Arundel County – effective March 12, 2025

An issue with supplemental withholding has been corrected. When calculating flat supplemental withholding for the Maryland State Tax for employees who reside in Anne Arundel County or for non-residents employed in Anne Arundel County, the tax engine will now be aligned with Maryland's online withholding calculators. It will apply the same tax brackets for supplemental withholding as it does for regular withholding.

NOTE: Maryland is unique from other state taxes. It requires that the state and local amounts be combined and sent to the State.

Minnesota

Additional Assessment Tax – effective March 12, 2025

Using the new Subject Wage on Wage Base option will no longer affect the Minnesota Additional Assessment tax amount. This option is designed solely to alter the reported subject wages, not the tax calculation.

Montana

Income Tax- effective March 12, 2025

Updated “Married (Spouse does not work)” option to” Married filing jointly or qualifying widower”.  If the employee elects the “Single or married filing separately”, select the “Single” option.

Ohio

Blanchester LSD – effective March 12, 2025

We have updated the Blanchester Local School District (LSD) tax to handle employee contributions to a SIMPLE IRA in the same manner as other Ohio school district taxes within the State Tax Enterprise (STE). Employee contributions to the following benefit types will now be treated as pre-tax, effectively reducing the wages subject to taxation: the increased SIMPLE IRA limit and Use Higer Benefit Catch Up Limits.

Bridgeport City Tax – effective March 12, 2025

We have updated the Bridgeport City Tax to treat employee benefit contributions the same way as other Ohio city taxes within the STE. Employee contributions for the following benefit types will now be considered pre-tax, reducing the taxable wages: HSA, FSA, and Dependent Care FSA. You can find these settings under Deduction and Benefit Codes in the US Tax Settings, listed as Code Type.

Hanging Rock City Tax – effective February 1, 2025

Effective February 1, 2025, the Hanging Rock City Tax has been added at a rate of 1%. There is no tax credit or credit limit for this tax. The tax will be administered by RITA.

Turtlecreek-Monroe Raceway JEDD – effective January 1, 2025

The tax credit is 100% and a credit limit of 2%.

Turtlecreek-Monroe 2022 JEDD – effective January 1, 2025

The tax credit is 100% and a credit limit of 2%.

Union City Tax – effective February 1, 2025

Effective February 1, 2025, the city tax for Union City is now administered by RITA. This can affect credit computations under certain circumstances. The tax rate remains 1%.

Yellow Springs EVSD – effective March 12, 2025

We have updated the Yellow Springs Exempted Village School District (EVSD) tax to handle employee contributions to a SIMPLE IRA in the same manner as other Ohio school district taxes Employee contributions to the following benefit types will now be treated as pre-tax, effectively reducing the wages subject to taxation: the increased SIMPLE IRA limit and Use Higer Benefit Catch Up Limits.

Pennsylvania

Bethel Township, Northern Lebanon School District – effective January 1, 2025

• The municipal LST amount remains $10
• The school district LST amount remains $0
• The total LST amount remains $10
• The municipal low income exemption (LIE) amount decreased from $2,000 to $0
• The school district low income exemption (LIE) amount remains $0

Cassandra Borough, Portage Area School District – effective January 1, 2025

• The municipal LST amount decreased from $10 to $0
• The school district LST amount remains $5
• The total LST amount decreased from $15 to $5
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $12,000

Clearfield Township, Butler Area School District– effective January 1, 2025

• The municipal LST amount increased from $0 to $47
• The school district LST amount remains $5
• The total LST amount increased from $5 to $52
• The municipal low income exemption (LIE) amount increased from $0 to $12,000
• The school district low income exemption (LIE) amount remains $0

Clymer Township, Northern Tioga School District– effective January 1, 2025

• The municipal LST amount remains $5
• The school district LST amount remains $5
• The total LST amount remains $10
• The municipal low income exemption (LIE) amount decreased from $1,000 to $0
• The school district low income exemption (LIE) amount remains $0

Lancaster City EIT and LST – effective March 12, 2025

We have corrected the EIT and LST for the City of Lancaster (Conestoga Valley School District) to treat employee benefit contributions the same way as other Pennsylvania local taxes. Employee contributions for the following benefit types will now be considered pre-tax, reducing the taxable wages: HSA, FSA, and Dependent Care FSA. You can find these settings under Deduction and Benefit Codes in the US Tax Settings, listed as Code Type.

New Castle City , New Castle Area School District – effective January 1, 2025

• The municipal nonresident EIT rate decreased from 1.332% to 1.148%
• The municipal resident EIT rate remains 1.575%
• The school district resident EIT rate remains 0.5%
• The total resident EIT rate remains 2.075%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

Snow Shoe Township, Bald Eagle Area School District – effective January 1, 2025

• The municipal LST amount remains $5
• The school district LST amount remains $5
• The total LST amount remains $10
• The municipal low income exemption (LIE) amount increased from $0 to $1,500
• The school district low income exemption (LIE) amount remains $0

Venango Township, Penncrest School District - effective January 1, 2025

• The municipal nonresident EIT rate remains 1%
• The municipal resident EIT rate decreased from 0.5% to 0.05%
• The school district resident EIT rate remains 0.5%
• The total resident EIT rate decreased from 1% to 0.55%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

West Leechburg Borough, Leechburg Area School District – effective January 1, 2025

• The municipal LST amount increased from $5 to $47
• The school district LST amount remains $5
• The total LST amount increased from $10 to $52
• The municipal low income exemption (LIE) amount increased from $0 to $12,000
• The school district low income exemption (LIE) amount remains $0

Best,

​@SoniaEchols90 Could these updates possibly be sent via email? At least to the VAR so they can pass on to customers? I have a client asking for this. 

Hi Jhouser,

That is something we consider. In the meantime, if you and the customer subscribe to this post, you will be notified every time an update is made.

​@SoniaEchols90 has there been a change since the beginning of May with the Symetry tax calculation for the VA ER SUTA or WV ER SUTA?  I have a client that all of a sudden the system is calculating and withholding those taxes in the month of May and the rate that is set for the taxes is 0.00.  

Hi Laura,

No changes have been made to VA or WV SUTA.  I tried to recreate using a zero rate, and it worked as expected.  Can you open a case so we can dig deeper into this?

Thank you,

Sonia Echols

Release:   2025-5.39.0        

Update: May 1, 2025

United States

Benefits

Rounding

In certain scenarios, calculated benefit amounts could be returned with extra decimals beyond two decimal places.

Now, any calculated benefit amounts will be rounded to two decimal places. No calculated benefit amounts have changed otherwise.

Corrected scenario where Section 125 contributions were deducted twice

Section 125 employee contribution amounts are subtracted from compensation when calculating all SIMPLE IRA employer contributions (both elective and non-elective).

However, when the same Section 125 benefit reference code was set up for both federal and state locations, the contribution amounts were being subtracted twice. Section 125 employee contributions will now be subtracted from SIMPLE IRA employer contributions only once per unique benefit reference code.

Unemployment

Override Subject Wages YTD – Effective May 1, 2025

Previously, only whole dollar amounts could be entered. Now the system allows entry of amounts with up to two decimal places.

Federal

Income Tax – Effective May 1, 2025

For the federal income tax (FIT), warnings will now be properly generated if you run a payroll calculation without the required federal miscellaneous parameters. Previously, there was no warning to indicate that something was wrong in the setup.

Alabama

Opelika City Tax – Effective April 1, 2025

The Taxable wage base has decreased from 1.5% to 1%.

Delaware

Paid Leave – Effective May 1, 2025

We've added a new miscellaneous parameter, Benefit Eligibility, to Delaware Paid Leave. This parameter has three valid inputs:

• ELIGIBLE: This represents the default existing behavior for Delaware Paid Leave. This is the default value that will be used if the parameter is not set, so you will see no change in calculation results unless you intentionally set the parameter.
• RECLASSIFIED: Both Delaware wages and any out-of-state wages set will be used when calculating the tax, rather than only Delaware wages.
• WAIVED: Both the employee and employer portions of Delaware Paid Leave will return $0 in tax. Subject wages will remain the same for eligible employees (for reporting and tracking purposes).

Hawaii

SDI – Effective May 1, 2025

Corrected an issue that occurred with the new field titled “Period Subject Wages”.  It overlooked a customer scenario where the annualized wages PLUS the PERIOD_SUBJECT_WAGES amount did not exceed the annual wage base. The “Period Subject Wages” amount will now still be taken into account for the current pay period in this scenario to make sure that the weekly wage base is not exceeded.

Maryland

Income Tax – Effective January 1, 2025

• The minimum annual standard deduction increased from $1,800 to $1,850
• The maximum annual standard deduction increased from $2,700 to $2,800

Massachusetts

Paid Family and Medical Leave – Effective May 1, 2025

New parameters have been added to exempt the tax(es).

• Employer Family Leave is Exempted
• Employer Medical Leave is Exempted
• Employee Family Leave is Exempted
• Employee Medical Leave is Exempted

Michigan

East Lansing City Tax – Effective May 1, 2025

Additional Withholding was displayed under a different local tax – MI CITY 1625035.  It now correctly shows up under MI CITY 165219.

New Jersey

Benefit applicability corrected for New Jersey labor taxes – Effective April 11, 2025

We've corrected how employer benefit contributions are handled for the following New Jersey labor taxes:

• Employer SDI
• State Unemployment Tax
• Work Force Development / Supplemental Work Force
• Family Leave Insurance
• SDI
• SUI

For these taxes, employer contributions to the following benefit types will now be treated as taxable and will increase the subject wages: Section 125, 401(k), Roth 401(k), SIMPLE IRA (3% Matching), SIMPLE IRA (2% Nonelective)

Ohio

Columbus City Tax – Effective March 14, 2025

Employee contributions to Section 125, HSA, FSA, Dependent Care FSA will no longer be treated as a pre-tax and will not reduce subject wages.

Mercy West JEDD III – Effective January 1, 2025

The taxable wage base increased from $103,700 to $106,189.  Additionally, we've confirmed with the City of Cheviot Tax Department that the tax rate for the Mercy West JEDD III tax did not decrease from 1.5% to 1% on October 1, 2025.  The rate of 1.5% was extended to 2028.

Oregon

Workers Benefit Fund (WBF) – Effective May 1, 2025

Exciting news! We’ve introduced a new feature called "Hours Worked." This allows you to manually input hours worked, overriding the default calculation based on the employee’s paycheck earnings. If you leave the Hours Worked field blank or set it to zero, the system will automatically pull the hours from the paycheck. Plus, don't forget to mark the employee as exempt if you want to apply a zero rate. This gives you greater flexibility and control over payroll management!

Pennsylvania

Corrected scenario when wages earned in multiple locations within the same EIT/LST

When running a payroll calculation with wages set in two different location codes, but both location codes are within the same EIT or LST, then those wages will now be aggregated together, and the tax will be calculated on the total amount.

Previously, the engine would only calculate the tax based on the wages within one of the locations.

Gratz Borough, Upper Dauphin Area School District LST - Effective January 1, 2025

• The municipal LST amount increased from $20 to $52
• The school district LST amount remains $0
• The total LST amount increased from $20 to $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district’s low-income exemption (LIE) amount remains $0

Jeannette City, Penn-Trafford School District - Effective January 1, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district's low-income exemption (LIE) amount increased from $0 to $12,000

Manor Borough, Penn-Trafford School District - Effective January 1, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district's low-income exemption (LIE) amount increased from $0 to $12,000

 Penn Borough, Penn-Trafford School District - Effective January 1, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district's low-income exemption (LIE) amount increased from $0 to $12,000

Penn Township, Penn-Trafford School District - Effective January 1, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district's low-income exemption (LIE) amount increased from $0 to $12,000

Trafford Borough, Penn-Trafford School District - Effective January 1, 2025

Note: Trafford Borough crosses both Allegheny and Westmoreland counties. This update is for the tax associated with the part of Trafford in Allegheny County.

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district's low-income exemption (LIE) amount increased from $0 to $12,000

Trafford Borough, Penn-Trafford School District - Effective January 1, 2025

Note: Trafford Borough crosses both Allegheny and Westmoreland counties. This update is for the tax associated with the part of Trafford in Westmoreland County.

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low-income exemption (LIE) amount remains $12,000
• The school district’s low-income exemption (LIE) amount increased from $0 to $12,000

Wattsburg Borough, Wattsburg Area School District - Effective January 1, 2025

• The municipal LST amount increased from $10 to $47
• The school district LST amount decreased from $10 to $5
• The total LST amount increased from $20 to $52
• The municipal low-income exemption (LIE) amount increased from $0 to $12,000
• The school district’s low-income exemption (LIE) amount remains $5,000

Washington

Industrial Insurance – Effective May 1, 2025

When calculating the employer Washington Industrial Insurance using Override Wage Base, the gross wages, subject wages, and gross subject wages were previously always returned as $0. Now, they will be returned correctly in this scenario. Additionally, this did not impact the actual tax amounts.

Paid Family Medical Leave – Effective January 1, 2025

• The percentage of the employee family leave was corrected from 48.05% to 48.22%
• The percentage of the employee medical leave was corrected from 51.95% to 51.78%

Note: This does not impact the total calculated tax amount, only the subaccounts displaying the separated family and medical leave amounts.

 West Virginia

Morgantown City Tax

Previously, employee contributions to a SIMPLE IRA were treated as pre-tax for the Morgantown City Tax. We've confirmed directly with the City of Morgantown that this should not be the case and have corrected this for all payroll dates.

Release:   2025-6.40.0        

Update: June 5, 2025

Initialization failure corrected for a demo license file

We corrected an issue where an error was returned the first time a demo license was initialized. Clients will no longer receive this logging error. 

United States

Benefits

SIMPLE IRA

New Code Types have been added to Deduction and Benefit Codes under US Tax Settings ~ Code Type to better handle Roth SIMPLE IRAs.  As with a normal SIMPLE IRA, the employee contribution limit is $16,500, the increased SECURE 2.0 limit is $17,600, and the catch-up amount is $3,500. Roth SIMPLE IRAs allow the employee to pay taxes on contributions now and enjoy tax-free withdrawals in retirement.  A nonelective SIMPLE IRA will allow the employer to contribute even if the employee does not make contributions.

1. ROTHSIMPLEIRA – A SIMPLE IRA plan with a Roth account type.
2. ROTHSIMPLEIRANONELECTIVE – A non-elective savings match to a SIMPLE IRA plan with a Roth account type.
3. SIMPLEIRA – (existing) A SIMPLE IRA savings match for an Individual Retirement Account.
4. SIMPLEIRANONELECTIVE (existing) – Nonelective Savings match for an Individual Retirement Account.

Starter 401(k)

New Code Types have been added to Deduction and Benefit Codes under US Tax Settings ~ Code Type to better handle Starter 401 (k) Plans.  The annual contribution limit for a Starter 401(k) is $6,000. There is a catch-up limit of $1,000. This plan allows only employees to contribute.

• ROTHSTARTER401k – A low-cost 401(k) deferral-only retirement plan with a Roth account type.
• STARTER401k – A low-cost 401(k)deferral-only retirement plan.  

Kentucky

Perryville OLF – Effective January 1, 2023

The tax rate increased from 1% to 1.5%.

Ohio

Crestline City Tax - Effective January 1, 2025

There is no longer a credit factor (tax credit) or a credit rate (credit limit).  The tax rate remains 2% for 2025.

Oregon

Workers Benefit Fund – Effective June 5, 2025

An update was made so that Oregon’s Workers Benefit Fund will display on the OR-OTC-V report when set up as a tax, and a report is created using Government Reporting ~ Oregon ~ OR OTC-V Report.

Pennsylvania

Bally Borough, Boyertown Area School District – Effective January 1, 2025

• The municipal nonresident EIT rate increased from 0% to 1%
• The municipal resident EIT rate remains 0.5%
• The school district resident EIT rate remains 0.5%
• The total resident EIT rate remains 1%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

Heidelberg Township, Conrad Weiser Area School District – Effective January 1, 2025

• The municipal nonresident EIT rate increased from 0% to 1%
• The municipal resident EIT rate remains 0.5%
• The school district resident EIT rate remains 0.5%
• The total resident EIT rate remains 1%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

South Canaan Township, Western Wayne School District – Effective January 1, 2025

• The municipal nonresident EIT rate increased from 0% to 0.5%
• The municipal resident EIT rate increased from 0% to 0.5%
• The school district resident EIT rate remains 0%
• The total resident EIT rate increased from 0% to 0.5%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

OT wage exemption for Alabama was not extended and expired 06/30/2025.

Is the engine updated to reflect Alabama OT wages being subject to state withholding as of 07/01/2025?

It is also specified that OT wages from 01/01/2025 to 06/30/2025 will need to appear in box 14 on the W2.
Overtime Exemption - Alabama Department of Revenue

Hi Jworthington29!  

As of July 1st, the tax engine will tax Overtime in Alabama.  The Tax Update is in testing, and I expect it to be released early next week.  Fortunately, that change did not require any changes on the Acumatica side. 

Sonia Echols

Release:    2025-8.42.0          

Update: August 19, 2025

United States

All States

State Unemployment

A new field, Allow Zero Rate has been added to Tax Maintenance (PR2080000) ~ TAX CODES.  Allow zero rate for each state unemployment record. Previously, if you did not specify a rate when calculating an employer SUTA tax (using the Rate parameter), the SUTA tax would be calculated as $0.

Now, if the Rate for an employer SUTA tax is set to 0, the STE will calculate the tax using the default rates for new employers. New employers often have not yet been assigned a SUTA rate by the state.

If the Rate is set to the employer's assigned rate (i.e., set to an amount greater than 0), then STE will continue to calculate the same as before.

For users who wish to continue using the previous behavior, we've added a miscellaneous parameter to all affected SUTA taxes: Allow Zero Rate. When set to true, the tax engine will calculate the corresponding SUTA tax at a rate of 0% when Rate is set to 0.

Please be aware that because of this, the tax engine will also return a tax limit that is based on this rate (rather than a $0 limit). This tax limit only applies when using the default rate for new employers.

The following table contains the default rates for all ER_SUTA taxes. Note that the default rate has been left at 0% for Louisiana, Wyoming, and the five U.S. territories supported by the tax engine. We have not yet confirmed a default rate for new employers for these seven states/territories.

Release:    2025-7.41.0          

Update: July 14, 2025

Canada

Federal

Income Tax – Effective July 1, 2025

The lowest Federal Tax rate will be reduced from 15% to 14%.

Alberta

Provincial Tax – Effective July 1, 2025

The Alberta Provincial Tax rates, income thresholds, and the constants have been updated. 

On February 27, 2025, the Alberta budget introduced the Alberta Supplemental Tax Credit for taxpayers with personal tax credits greater than $60,000. The new tax credit will be called the K5P Factor.
K5P = ((K1P + K2P) – $3,600.00) × (0.04/0.06)
For 2026 and subsequent years, the K5P factor will be as follows:
K5P = ((K1P + K2P) – $4,800.00*) × (0.02/0.08)
* This amount is based on the 2025 first tax bracket and is subject to change for 2026 based on indexation.
 
The Alberta government's budget for 2024-2025 includes significant changes to the tax system. Here are the key updates:

• New 8% Personal Income Tax Rate: Starting January 1, 2025, an 8% tax rate will apply to the first CA$60,000 of income. This will be adjusted by the "Alberta escalator" beginning in 2026. 
• Supplemental Personal Tax Credit: A new supplemental personal tax credit of 2% will be available for individuals who claim more than CA$60,000 in non-refundable tax credits. 

Manitoba

Provincial Tax – Effective July 1, 2025

The Manitoba Provincial Tax rates, income thresholds, and the constants have been updated. 

Nova Scotia

Provincial Tax – Effective July 1, 2025

The Nova Scotia Basic Personal Amount (BPANS) is now set at the maximum of $11,744, regardless of the taxable income.

Prince Edward Island

Provincial Tax – Effective July 1, 2025

The Prince Edward Island Basic Personal Amount (BPA) has increased from $14,250 to $15,050.

Saskatchewan

Provincial Tax – Effective July 1, 2025

The Saskatchewan Basic Personal Amount has increased from $18,491 to $19,491.

United States

All States

State Unemployment

Two new fields have been added for future use:

• Withholding Tax Agency
• Unemployment Tax Agency

Alabama

Income Tax – Effective July 1, 2025

The temporary Alabama state tax exemption for overtime wages will expire on June 30, 2025. This exemption, effective since January 1, 2024, excluded overtime wages from state income tax and subject wage calculations.

Georgia

Income Tax – Effective July 1, 2025

The flat tax rate for the Georgia State Tax has decreased from 5.39% to 5.19%.

Iowa

IA W-4 Tax Filing Status – Effective July 14, 2025

• “Other” has been updated to “Other (including Single)”
• “Married” has been updated to “Married filing jointly or Qualifying Surviving Spouse”

State Unemployment Tax – Effective July 1, 2025

A previous state's SUTA wages will not count towards the Iowa State Unemployment Tax's wage base. SF 603 has modified the definition of “taxable wages” to exclude wages paid to employees working in another state.

Kentucky

Somerset OLF – Effective July 1, 2025

The Somerset OLF has increased from 0.6% to 0.9%.

Montana

Form MW-4  – Effective January 1, 2025

Form MW-4, Line 1: Federal Filing Status

Filing Status was a new miscellaneous parameter for 2024. This corresponds to the checkboxes on Form MW-4, Line 1. It can be set to the following values:

• Single or married filing separately
• Married filing jointly or qualifying widower
• Head of household
• If not set (for example, if the employee has not submitted a new Montana Form MW-4), this parameter will default to a value of 'Single or married filing separately'. Per page 4 of the new MW-4: "If your employee's Form MW-4 is invalid or incomplete, withhold Montana tax as if the employee is single."

Married Filing Jointly with Both Spouses Working is a new flag that corresponds to the checkbox on Form MW-4, Line 2. If this parameter is not set, it will default to false.

Specific Withholding Amount was a new miscellaneous parameter for 2024. This corresponds to the dollar amount that can be entered on Form MW-4, Line 4. If set, the engine will withhold the exact amount specified instead of calculating the tax as normal.

Nebraska

MW-4 Filing Status – Effective July 14, 2025

• “Married” has been updated to “Married filing jointly or Qualifying Widow(er)”

New Jersey

Unemployment and SDI – Action Required – Effective January 1, 2025

Benefit applicability reverted for New Jersey labor taxes.  After further discussion with the New Jersey Department of Labor, we have corrected how employer benefit contributions are handled for the following New Jersey labor taxes:

• New Jersey Employer SDI
• New Jersey State Unemployment Tax
• NJ Work Force Development / Supplemental Work Force
• New Jersey Family Leave Insurance
• New Jersey SDI
• New Jersey SUI
• For these taxes, the engine will now treat employer contributions to benefits 401(k), Roth 401(k), SIMPLE IRA (3% Matching), SIMPLE IRA (2% Non-elective), and Section 125 as non-taxable, which means they will have no impact on subject wages.

Action Required: Review the taxes above to ensure that YTD taxable wages are correct for employees with 401(k), SIMPLE IRA, and Section 125 as non-taxable wages.

In the Release: 2025-5.39.0, we had updated these taxes to treat employer contributions as taxable, which increased the subject wages. This change was based on our analysis of the "cash-in-lieu of benefits" provision, which requires contributions to be treated as taxable when offered. However, after further discussion with the New Jersey Department of Labor and additional research, we discovered that most employers do not offer cash-in-lieu options, making this provision uncommon in practice.

Action Required: For employers who do offer cash-in-lieu of benefits, a custom benefit type can be created to support those specific taxability rules. This approach allows us to accommodate both standard employer practices and special cases where cash-in-lieu options are offered.

Employer SDI – Effective July 1, 2025

A new flag has been added to Calculate Tax by Wage Base.  Select to stop the calculation at the wage base limit instead of the tax limit. The option is available for taxes that can have a mid-year rate change, which may cause the tax to be under-withheld or over-withheld if the tax limit is used instead of the wage base limit.

New Mexico

Employee Workers’ Compensation – Effective July 1, 2025

The employee Workers' Compensation fee increased from $2.00 to $2.25.

Employer Workers’ Compensation – Effective July 1, 2025

The employer Workers' Compensation fee increased from $2.30 to $2.55.

New York

MCTMT – Action Required - Effective July 1, 2025

The New York Metropolitan Commuter Transportation Mobility Tax (MCTMT) as referenced below.

Reference: New York increases the Metropolitan Commuter Transportation Mobility Tax rate for large employers, effective July 1, 2025 

Action Required: MCMT tax is currently not supported, nor is any Payroll Expense Tax.  This tax will need to be managed manually.

Ohio

Arcanum City Tax – Effective July 1, 2025

The Arcanum City Tax is now administered by RITA. The engine tracks whether an Ohio local tax is administered by RITA and uses this information in certain credit calculations. The tax rate itself remains 1%.

Bellaire City Tax – Effective July 1, 2025

The Bellaire City Tax is now administered by RITA. The engine tracks whether an Ohio local tax is administered by RITA and uses this information in certain credit calculations. The tax rate itself remains 1%.

Germantown City Tax – Effective January 1, 2026

The Germantown City Tax will be administered by RITA. The credit rate (credit limit) increased from 0.9% to 1.5%. The tax rate remains 1.5% and the credit factor (tax credit) remains 60%.

Granville Township JEDD – Effective October 29, 2024

A new JEDD has been established in Granville Township with a rate of 1.5%. It is administered by the Village of Granville.

The lot is vacant, and no one is working there yet, so although the effective date is in the past, there is no employee withholding to collect so far.

Green Springs City Tax – Effective July 1, 2025

The Green Springs City Tax credit limit increased from 0.5% to 1% and is now administered by RITA. The tax rate remains 1%.

Lakewood City Tax – Effective January 1, 1900

The Oak Hill City Tax credit increased to 100% and the credit limit decreased to 0.5%. The tax rate remains 1.5%.

This change is a result of an internal audit, and we've confirmed this update with the Lakewood Income Tax Division directly.

Milford JEDD VII Tax – Effective April 1, 2025

The Village of North Hampton has enacted a 1% income tax, with no credit allowed for taxes paid to other municipalities (credit and credit limit are 0%). This tax is administered by the Regional Income Tax Agency (RITA).

Millville City Tax – Effective July 1, 2025

The Millville City Tax has been added with a rate of 1%, a credit factor (tax credit) of 100%, and a credit rate (credit limit) of 1%. The tax is administered by RITA.

New Boston City Tax – Effective August 1, 2025

The New Boston City Tax is now administered by RITA. The tax rate remains 2.5%.

New Lebanon City Tax – Effective October 1, 2025

 The New Lebanon City Tax will be administered by RITA. The tax rate remains 1% with no credit.

Oak Hill City Tax – Effective July 1, 2025

The Oak Hill City Tax rate increased from 0.5% to 1%. The credit and credit limit remain 0%.

Springfield Beckley Airport JEDD Tax – Effective July 1, 2025

The Springfield Beckley Airport JEDD Tax is now administered by RITA.

Springfield City Tax – Effective July 1, 2025

The Springfield City Tax credit limit increased from 1.2% to 2.4% and it is now administered by RITA. The tax rate remains 2.4%.

Union Twp Village of Batavia JEDD 9 – Effective June 1, 2025

Union Township has established a JEDD tax with the Village of Batavia on the following two retail marijuana dispensaries: "The Forest Cincinnati" and "Beyond Hello Cincinnati Dispensary." The rate is 1%. The tax is administered by RITA.

Vermilion City Tax - Effective January 1, 2025

The Vermilion City Tax credit limit increased from 0.5% to 1%. The tax rate remains 1.5% and credit remains 100%.

Oregon

Eugene Community Safety Payroll Tax – Effective July 1, 2025

The employee CSPT annual wage brackets have been streamlined, and the middle tier of this tax, which previously applied a rate of 0.0030, has been eliminated. The lower and higher tier rates remain unchanged:

• Employees earning more than $31,304.00 will be subject to the Eugene Community Safety Payroll Tax at a rate of 0.0044 (0.44%)
• Employees earning $31,304.00 or less are exempt from this tax

Pennsylvania

Philadelphia City Tax – Effective July 1, 2025

 The Philadelphia City Tax has been updated:

• The resident rate has decreased from 3.75% to 3.74%
• The nonresident rate has decreased from 3.44% to 3.43%

Rhode Island

State Unemployment Tax – Effective January 1, 2025

The maximum Rhode Island SUTA rate (beyond which the wage base changes from $29,800 to $31,300) has decreased from 9.49% to 9.7%.

Virginia

Income Tax – Effective July 1, 2025

The Virginia State Tax standard deduction amount has increased from $8,500 to $8,750.

While the tax tables use separate Single and Married Filing Jointly standard deduction amounts, the "Formula for Computing Tax to be Withheld" only uses the $8,750 standard deduction amount. Withholding Tables

Washington

Employment Administration Fund (EAF) - Effective January 1, 2026

The Washington Employment Administration Fund (EAF) wage base will increase from $72,800 to $78,200.

State Unemployment Tax - Effective January 1, 2026

The Washington State Unemployment Tax wage base will increase from $72,800 to $78,200.

West Virginia

Benefit Taxability for Local Taxes

After an audit of benefit taxability for local West Virginia taxes, we've corrected the following taxes to treat employee and employer benefit contributions as post-tax, which will therefore not impact subject wages.

Wyoming

State Unemployment Tax – Effective January 1, 2026

The tax wage base increased from $32,400 to $33,800.

Release:    2025-9.43.0          

Update: September 22, 2025

United States

All States

Starter 401(k) - effective July 11, 2025

When overriding the limit for a starter 401(k), the new limit will only be used when lower than the default IRS. This is how regular 401(k)s work in the tax engine, and so the starter 401(k) behavior has been updated to mirror the 401(k) behavior.

Previously, the limit override was always used, even when higher than the IRS limit.

After an audit of benefit taxability, we've corrected the following taxes to treat employer benefit contributions to Roth Starter 401(k) plans as non-taxable, meaning employer contributions will not impact subject wages:

Additionally, Arkansas State Unemployment Tax will now treat employer contributions to Roth 401(k) as non-taxable as well.

Finally, the Wilsonville Transit Tax will now treat employer contributions as taxable for the following benefits:

• 401(k)
• 457
• Roth 401(k)
• 403(b)

State Unemployment (XX ER SUTA) Tax

Withholding Tax Agency and Unemployment Tax Agency flags were added via Tax Update 2025-7.41.0 for future use. We found a better alternative for the Multiple EINs solution, and they have been removed.

State Unemployment (XX ER SUTA SC) Tax

Withholding Tax Agency and Unemployment Tax Agency flags were added via Tax Update 2025-7.41.0 for future use. We found a better alternative for the Multiple EINs solution, and they have been removed.

Alabama

Sulligent City Tax – effective August 8, 2025

Employee contributions to the following benefits will be treated as post-tax and will no longer reduce subject wages:

• Section 125
• Health Savings Account (HSA)
• Flexible Spending Arrangement (FSA)
• Dependent Care FSA

Iowa

State Unemployment Tax – effective January 1, 2026

The wage base has decreased from $39,500 to $20,400.

Kentucky

Ashland OLF – effective January 1, 2026

The rate increased from 2% to 2.375%.

Brandenburg OLF – ACTION REQUIRED - effective July 1, 2025

The City of Brandenburg has established a 0.333% occupational tax. The tax is 0.333% of all wages and compensation for work or services performed within the city by every resident and nonresident employee.

This tax applies only to employees who earn, or are expected to earn, $20,000 or more (>= $20,000) annually. Employees earning less than this annual threshold are not subject to the tax. For employees who meet the threshold, the tax is applied to all wages up to the annual compensation cap of $200,000. The initial $20,000 is subject to the tax.

ACTION REQUIRED: To ensure accurate withholding, the following jurisdiction parameter has been added to handle the unique annual threshold:

• Annual Wages: The employee’s expected total wages for the calendar year

The engine uses the Annual Wages parameter to determine if the employee meets the $20,000 threshold. It is highly recommended to set this parameter for any employee expected to meet the threshold to ensure tax is calculated correctly from the first paycheck. The tax engine does not perform automatic "catch-up" withholding for wages earned before the threshold was met. Therefore, failure to set this parameter for an eligible employee may result in under-withholding.

Somerset OLF – effective January 1, 2026

The rate has increased from 0.9% to 1.2%.

Walton OLF – effective January 1, 2026

The City of Walton has established a 2% occupational tax. The tax is 2% of all wages and compensation paid in the City of Walton for work or services within the city by every resident and nonresident who is an employee. 

Maryland

State Income Tax – effective January 1, 2025

• The standard deduction is now a flat $3,350 instead of a range; the previous 15% gross income deduction and ranges were removed.
• Two new tax brackets have been added for the single and married filing statuses, with a maximum state tax rate of 6.5% for each filing status.
• Supplemental tax rate increased from 5.75% to 6.5% plus county rate; 3.20% rate for non-reciprocal states increased to 3.30%.

Anne Arundel County Tax – effective January 1, 2025

Currently, the engine calculates Anne Arundel withholding for supplemental-only paychecks based on the bracket-based logic.

The tax engine will apply a flat combined rate using the following for supplemental-only payroll runs:

• The highest state tax rate (6.5%)
• The highest local county rate (3.20%)

This will result in a combined withholding rate of 9.7%.

This change affects only supplemental-only payroll calculations. It does not impact calculations that include regular wages (alone or with supplemental wages). Only lump-sum calculations using supplemental-only wages will be updated.

Dorchester County Tax – effective January 1, 2025

The resident tax rate increased from 3.2% to 3.3%. The non-resident rate remains 2.25% for 2025.

Frederick County Tax – effective January 1, 2025

Currently, the engine calculates Frederick withholding for supplemental-only paychecks based on the bracket-based logic.

The tax engine will apply a flat combined rate using the following for supplemental-only payroll runs:

• The highest state tax rate (6.5%)
• The highest local county rate (3.20%)

This will result in a combined withholding rate of 9.7%.

This change affects only supplemental-only payroll calculations. It does not impact calculations that include regular wages (alone or with supplemental wages). Only lump-sum calculations using supplemental-only wages will be updated.

Nebraska

Income Tax – ACTION REQUIRED - effective September 22, 2025

A new setting, Number of Employees, has been added to Tax Maintenance ~ TAX CODES for NE SIT.  If the number of employees is 24 or fewer and the employee’s withholding amount is less than 1.5% of the taxable wages, Nebraska Income Tax will not be collected for that employee. Please note that this parameter defaults to 25 employees.

ACTION REQUIRED: Update the Number of Employees to properly calculate Nebraska Income Tax if you have fewer than 25 employees.

New Jersey

Employer State Unemployment (NJ ER SUTA) Tax  – effective July 1, 2025

The rate decreased from 2.9825% to 2.6825%. The wage base remains $43,300.

Employer State Unemployment (NJ ER SUTA) Tax  – Effective January 1, 2026

The wage base increased from $43,300 to $44,800.

Employee State Unemployment (NJ SUI) Tax – Effective January 1, 2026

The wage base increased from $43,300 to $44,800.

Employer State Disability Insurance (NJ ER SDI) Tax – effective January 1, 2026

The wage base increased from $43,300 to $44,800.

Employee State Disability Insurance (NJ SDI) Tax – effective January 1, 2026

The wage base increased from $165,400 to $171,100.

Family Leave Insurance (NJ FLI) Tax – effective January 1, 2026

The wage base increased from $165,400 to $171,100.

Workforce Development/Supplemental Workforce (NJ ER SUTA SC) Tax – effective January 1, 2026

The wage base increased from $165,400 to $171,100.

New Mexico

Income Tax – effective September 22, 2025

Nonresident Alien has been removed as an option for Filing Status.

Filing Status has been updated to align with the Federal W-4 for consistency.

Options available:

• Single or Married Filing separately
• Married filing jointly or Qualifying surviving spouse
• Head of household
• Married but use single rate

New York

State Unemployment (NY ER SUTA) Tax - effective January 1, 2026

The wage base increased from $12,800 to $13,000.00.

Re-Employment Service Fund (NY ER SUTA SC) Tax – effective January 1, 2026

The wage base increased from $12,800 to $13,000.00.

North Dakota

Income Tax – effective September 22, 2025

Filing Status has been updated to align with the Federal W-4 for consistency.

Options available:

• Single or Married Filing separately
• Married filing jointly or Qualifying surviving spouse
• Head of household
• Married but use single rate

Ohio

Canal Fulton City Tax – effective October 1, 2025

The Canal Fulton City Tax will be administered by RITA. The engine tracks whether an Ohio local tax is administered by RITA and uses this information in certain credit calculations. The tax rate remains 2%, the credit factor (tax credit) remains 100%, and the credit rate (credit limit) remains 2%.

Paulding City Tax – effective July 1, 2025

The rate decreased from 1.1% to 1%.

Pennsylvania

State Unemployment Tax

Employee PA SUI will be calculated using the PA ER SUTA wages. 

Conyngham Township, Greater Nanticoke Area School District LST – effective July 18, 2025

• The municipal LST amount remains $5
• The school district LST amount remains $5
• The total LST amount remains $10
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount increased from $0 to $4,000

Nanticoke City, Greater Nanticoke Area School District LST – effective July 18, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low income exemption (LIE) amount remains $12,000
• The school district low income exemption (LIE) amount increased from $0 to $4,000

 Newport Township, Greater Nanticoke Area School District LST – effective July 18, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low income exemption (LIE) amount remains $12,000
• The school district low income exemption (LIE) amount increased from $0 to $4,000

Philadelphia City Tax – effective July 2025

In July 2025, the City of Philadelphia Department of Revenue retroactively updated their 2018–2021 rates. We have confirmed with the Department of Revenue that these were actual rate changes and not just formatting changes on the website.

• Effective July 1, 2018:
  • The resident rate has been updated from 3.8809% to 3.88%
  • The nonresident rate has been updated from 3.4567% to 3.46%
• Effective July 1, 2019:
  • The resident rate has been updated from 3.8712% to 3.87%
  • The nonresident rate has been updated from 3.4481% to 3.45%
• Effective July 1, 2020:
  • The resident rate has been updated from 3.8712% to 3.87%
  • The nonresident rate has been updated from 3.5019% to 3.50%
• Effective July 1, 2021:
  • The resident rate has been updated from 3.8398% to 3.84%
  • The nonresident rate has been updated from 3.4481% to 3.45%

Plymouth Township, Greater Nanticoke Area School District LST – effective July 18, 2025

• The municipal LST amount remains $47
• The school district LST amount remains $5
• The total LST amount remains $52
• The municipal low income exemption (LIE) amount remains $12,000
• The school district low income exemption (LIE) amount increased from $0 to $4,000

Venango Township, Penncrest School District EIT– effective July 18, 2025

• The municipal nonresident EIT rate remains 1%
• The municipal resident EIT rate increased from 0.05% to 0.5%
• The school district resident EIT rate remains 0.5%
• The total resident EIT rate increased from 0.55% to 1%
• The municipal low income exemption (LIE) amount remains $0
• The school district low income exemption (LIE) amount remains $0

Washington

Seattle Social Housing Tax – ACTION REQUIRED - effective January 1, 2025

The City of Seattle has implemented a 5% employer-only payroll expense tax on the portion of an employee’s annual compensation that exceeds $1,000,000. This tax applies only to employers with employees performing work in Seattle.

The 5% rate is applied only to the portion of annual compensation over $1,000,000.

Impact of employee benefit contributions on subject wages:

• Post-tax (no impact): 401(k), 403(b), 457, and Starter 401(k) contributions do not reduce subject wages
• Pre-tax (reduces subject wages): Section 125 plans, Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and Dependent Care FSAs reduce subject wages

Action Required: Payroll Expense Taxes are not supported.  You will need to maintain and report this tax if required.

Release:    2025-10.44.0    

Update: November 18, 2025

United States

Connecticut

Paid Family Leave Insurance (FLI) - effective January 1, 2026

Previously, Connecticut Paid Leave was calculated based on regular wages, with a dependency on State Unemployment (SUTA) wages being defined. Connecticut Paid Leave taxable wages are now based on SUTA gross wages.

Kentucky

Unemployment Tax – effective April 1, 2025

The Kentucky State Unemployment Tax default rate increased from 2.625% to 2.7%. The wage base remains $11,700.

City OLF – effective September 12, 2025

The engine now considers both period withheld and year-to-date withheld values when determining if an employee has reached the Kentucky City OLF wage base.

• If a period withheld value is present, the engine will continue to use it.
• If the period withheld value is zero, the engine will fall back to the year-to-date withheld amount.

Previously, the engine only used the period withheld to determine if the employee reached the wage base. 

Bardwell OLF – effective July 1, 2025

The OLF rate increased from 0.5% to 1%.

Crittenden County OLF - effective July 1, 2025

The OLF rate increased from 0.5% to 1.5%.

Grace Commercial Park TIF – effective October 1, 2019

Effective October 1, 2019, Graves County has established a 1% Tax Increment Financing (TIF) assessment. While the tax went into effect October 1, 2019, the first building on the lot was completed in September 2023. The tax is 1% of all wages and compensation for work performed within the Grace Commercial Park Development Area by every resident and nonresident employee.

This TIF tax "stacks" with the Graves County OLF tax, resulting in a total stacked rate of 2%.

Marion OLF – effective July 1, 2025

The Occupational License Fee rate increased from 0.75% to 1.5%.

Powell County – effective July 1, 2025

The Occupational License Fee rate increased from 1.25% to 1.75%.

Maryland

Ann Arundel County supplemental calculation correction – effective January 1, 2025

Supplemental-only payroll calculation logic was updated to align to the 2025 Maryland Withholding Guide. Previously, the engine calculated Anne Arundel and Frederick County withholding for supplemental-only paychecks based on the bracket-based logic.

The tax engine will now apply a flat combined rate using the following for supplemental-only payroll runs:

• The highest state tax rate (6.5%)
• The highest local county rate (3.20%)

This results in a combined withholding rate of 9.7%.

This change affects only supplemental-only payroll calculations. It does not impact calculations that include regular wages (alone or with supplemental wages). Only lump-sum calculations using supplemental-only wages will be updated.

Fredrick County supplemental calculation correction – effective September 12, 2025

Supplemental-only payroll calculation logic was updated to align to the 2025 Maryland Withholding Guide. Previously, the engine calculated Anne Arundel and Frederick County withholding for supplemental-only paychecks based on the bracket-based logic.

The tax engine will now apply a flat combined rate using the following for supplemental-only payroll runs:

• The highest state tax rate (6.5%)
• The highest local county rate (3.20%)

This results in a combined withholding rate of 9.7%.

This change affects only supplemental-only payroll calculations. It does not impact calculations that include regular wages (alone or with supplemental wages). Only lump-sum calculations using supplemental-only wages will be updated.

Fredrick County Tax – effective January 1, 2025

The engine will calculate Frederick County income tax using the applicable tax brackets in the 2025 Maryland Withholding Guide (page 9) instead of always applying the highest county rate. This change applies to regular and regular + supplemental payroll runs. Supplemental-only calculations remain unaffected.

As a reminder, the state and county taxes are returned as a combined amount under the Maryland State Tax. The portion of the tax from the state itself is unaffected by this change.

Nevada

State Unemployment Tax – effective January 1, 2026

The Unemployment Tax wage base increased from $41,800.00 to $43,700.00. The new employer rate remains at 2.95%.

Nevada Career Enhancement Program – Effective January 1, 2026

The wage base increased from $41,800.00 to $43,700.00.

Ohio

State Income Tax – effective October 1, 2025

The Ohio State Tax brackets have been streamlined and updated. The supplemental tax rate remains 3.5% and the value of an exemption remains $650.

Jefferson Township-Washington Court House JEDD – effective January 1, 2026

The rate decreased from 1.95% to 1.75%. The credit and credit limit remain 0%. 

Washington Court House City Tax – effective January 1, 2026

The rate decreased from 1.95% to 1.75%. Additionally, the credit limit was updated to 1.75%. The tax credit remains 50%.

Oregon

Worker’s Benefit Fund Assessment – effective January 1, 2026

The Employer rate will decrease from $0.01 to $0.009 per hour worked. The Employee rate will decrease from $0.01 to $0.009 per hour worked.