Release: 2025-2.36.0 Update: January 21, 2025
United States
Federal
HSA, FSA and Dependent Care FSA – Effective 1/15/2025
Previously on contributions to the generic Section 125 benefit type would be subtracted from compensation used to calculate SIMPLE IRA contributions. Now HSAs, FSAs and Dependent Care FSAs will also reduce the compensation used to calculate SIMPLE IRA contributions.
For example, assume that an employee is being paid $1,000 in gross wages and is contributing $80 to an HSA. The employer also has a SIMPLE IRA set up as a 3% matching contribution.
- Before: The engine would calculate the SIMPLE IRA amount in this scenario as $30
- After: The engine will now calculate the SIMPLE IRA amount as $27.60
- ($1,000 - $80) x 3% = $27.60
Alabama
Employer HSA contributions - Effective 1/1/1900
For all payroll dates, employer contributions to an HSA will no longer increase taxable wages for Alabama unemployment taxes. This includes State Unemployment Tax and Employment Security Assessment.
Iowa
Income Tax – Effective January 1, 2024
Filing Status has been updated to correspond to the “Marital Status” of Form IA W-4. It can be set to one of the following values: Other, Head of Household, Married filing jointly. If the Filing Status is not set, the marital status will be treated as Married filing jointly if the Total Allowance is 80 or greater. If Total Allowances is less than 80, then the marital status will be treated as Other.
A new flag Spouse Employed has been added to correspond to the Form IA W-4 question, "If so, does your spouse also have
earned income?" It can be set to true or false. This parameter will only impact calculations used when Filing Status is Married filing jointly.
Louisiana
Income tax – Effective 1/1/2025
Due to a recent Declaration of Emergency, Louisiana has switched to a flat tax of 3.09%. The standard deduction amount is $12,500; employees can have either 0, 1, or 2 deductions subtracted from their annual wages.
Existing Filing Status: (1300(4_11)F.pdf)
S - Single Individual
M - Married - Separate
0 - No exemptions or dependents claimed
New Filing Status added in 2025: (1300(1_25)F.pdf)
MFJ- Married Filing Jointly
H - Head of Household
Q- Qualified Surviving Spouse
Total Dependents is no longer active for 2025.
Standard Deductions is the Total number of deductions claimed in Box A or Line 6 of the 2025 L-4 form. If an amount is entered into Total Allowances, then this field will be ignored. Total Allowances are not required as of 2025.
Michigan
Income Tax – Effective 1/21/2025
A correction was made with Total Allowances so that they are considered when calculating Michigan Income Tax. Previously they were ignored.
Ohio
Hamersville City Tax – Effective 1/1/2025
This tax has a rate of 1%, a credit factor (tax credit) of 100%, and a credit rate (credit limit) of 1%. This tax is administered by RITA.
Maryland
Anne Arundel County Tax – Effective 1/1/2025
The middle bracket rate increased from 2.81% to 2.94 %.
Calvert County Tax – Effective 1/1/2025
The tax rate increased to 3.2%.
Cecil County Tax – Effective 1/1/2025
Tax rate decreased to 2.74%
Saint Mary’s County Tax – Effective 1/1/2025
The tax rate increased to 3.2%.
Montana
State Income Tax - Effective 1/1/2025
The Montana State tax brackets have been updated.
North Carolina
State Income Tax – Effective 1/1/2025
The tax rate decreased to 4.35%.
Unemployment Tax – Effective 1/1/2025
The tax wage base increased to $32,600.
North Dakota
Unemployment Tax – Effective 1/1/2025
The tax wage base increased to $45,100.
Oregon
Paid Family and Medical Leave Tax – Effective 1/1/2025
The tax wage base increased to $176,100.
Rhode Island
Unemployment Tax – Effective 1/1/2025
The main wage base increased to $29,800 and the wage base for employers at the highest tax rate increased to $31,300.
Job Development Surcharge - Effective 1/1/2025
The main wage base increased to $29,800 and the wage base for employers at the highest tax rate increased to $31,300.
Disability Insurance – Effective 1/1/2025
The tax rate increased to 1.3% and the wage base increased to $89,200.
Vermont
State Income Tax – Effective 1/1/2025
State Tax brackets have been updated. The value of the withholding allowance increased to $5,300.
Washington
Paid Family and Medical Leave – Effective 1/1/1900
Corrected an issue where the tax engine was not properly treating optional flags instead, they were treated as required. Impacted flags: Employer Elected Percentage and Employer Elected Amount under Tax Maintenance ~ TAX CODES.
Wyoming
Workers Compensation – Effective 1/1/2025
The quarterly wage base increased to $14,768.01
Release: 2025-1.35.0 Update: December 30, 2024
Canada
Federal
T4 and RL-1 – effective January 1, 2024
- The 2024 version is now available.
United States
Federal
Federal Benefit Limits - effective January 1, 2025
401(k), Roth 401(k), 403(b), Roth 403(b), 457(b), Roth 457(b)
Limit Type | 2024 Limit | 2025 Limit |
Annual contribution limit | $23,000 | $23,500 |
Catch-up contribution amount | $7,500 | $7,500 |
Combined contribution limit | $69,000 | $70,000 |
Annual compensation limit | $345,000 | $350,000 |
FSA, FSADC
Limit Type | 2024 Limit | 2025 Limit |
Annual FSA contribution limit | $3,200 | $3,300 |
Dependent care FSA limit | $5,000 for individual or MFJ, $2,500 for MFS | $5,000 for individual or MFJ, $2,500 for MFS |
HSA
Limit Type | 2024 Limit | 2025 Limit |
Maximum annual contribution for an eligible individual with self-only coverage | $4,150 | $4,300 |
Maximum annual contribution for an eligible individual with family coverage | $8,300 | $8,550 |
Catch-up contribution for individuals age 55 and over | $1,000 | $1,000 |
SIMPLE IRA
Limit Type | 2024 Limit | 2025 Limit |
Annual compensation limit | $345,000 | $350,000 |
Annual contribution limit | $16,000 | $16,500 |
Increased deferral limit (SECURE 2.0 Provision 117) | $17,600 | $17,600 |
Catch-up contribution amount | $3,500 | $3,500 |
Income Tax – effective January 1, 2025
The federal tax tables are updated based on the latest 2025 Publication 15-T draft. Publication 15-T Draft.
All States
ER SUTA and ER SUTA SC wage bases are no longer coupled – effective December 30, 2024
Overriding the SUTA wage base will no longer automatically override the wage base for SUTA surcharge taxes within the same state.
Alabama
Rainbow City Tax – effective retroactively
Previously, employer HSA contributions were treated as taxable (meaning they would increase the subject wages for the tax). Now, they will be correctly treated as non-taxable (meaning they will have no effect on the subject wages).
Alaska
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $51,700.
SUI – effective January 1, 2025
The taxable wage base Increased to $51,700.
Arkansas
State Tax – effective January 1, 2025
The values in the tax brackets have been updated. The Standard Deduction increased to $2,410.
California
State Tax – effective January 1, 2025
The tax tables have been updated:
-
- Table 1 - Low-Income Exemption Table:
Single, dual income married, married with multiple employers, & married with 0-1 allowances Increased to $18,368 - Married with 2+ allowances & unmarried head of household Increased to $36,736
- Table 3 - Standard Deduction Table:
- Single, dual income married, married with multiple employers, & married with 0-1 allowances Increased to $5,540
- Married with 2+ allowances & unmarried head of household Increased to $11,080
- Table 4 - Exemption Allowance Table: the annual value of one allowance Increased to $163.90
- Table 5 - Tax Rate Table: the tax brackets and rates have been updated
Colorado
Family Leave Insurance – Action Required - effective December 30, 2024
Corrected an issue where the tax limits for CO FLI and ER CO FLI were not applied correctly on the Paychecks and Adjustments (PR302000) form for paychecks of the Regular type.
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $27,200.
Solvency Surcharge – effective January 1, 2025
The taxable wage base Increased to $27,200.
Support Surcharge – effective January 1, 2025
The taxable wage base Increased to $27,200.
Aurora Occupational Privilege Tax – effective January 1, 2025
The tax will be deactivated for both employers and employees.
Connecticut
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $26,100.
Delaware
Paid Leave – Action Required - effective January 1, 2025
Delaware Paid Leave is a new tax for 2025. The total tax rate for the employer is 0.8%. The wage base matches the Social Security wage base ($176,100 for 2025).
More information can be found on the Delaware Department of Labor's website: Delaware Paid Leave Is Coming
While the total tax amount is ultimately the employer's responsibility, the employer may require the employee to contribute up to 50% of the total amount due. By default, the engine will assume that the employer is contributing the entire 0.8%.
When calculating Delaware Paid Leave, it is highly recommended that you always set up both the employee and employer portions of this tax, even if one is expected to calculate a $0 amount.
New parameters have been added to support Delaware Paid Leave:
Name | Additional Information |
Employee Contribution Percentage | The percentage of the total tax that the employer requires the employee to contribute. If no value is specified, the contribution percentage equals 0. |
Number of Employees | Used to determine the default employer contribution for the tax |
Opt In Medical Leave | Employers with less than 25 employees, select to opt in to Meidal Leave. |
Opt in Parental Leave | Employers with less than 10 employees, select to opt in to Parental Leave |
Opt in Family Caregiver | Employers with less than 25 employees, select to opt in to Family Caregiver / Qualified Exigency Leave. |
Hawaii
State Tax – effective January 1, 2025
The percentage table values have been updated for single & married employees. An extra lump sum withholding allowance valued at $1,650 annually has been added to the calculation.
State Disability Insurance – effective January 1, 2025
The maximum weekly wage base will increase to $1,441.72.
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $61,958.
Note: The rate was changed again after this release, it will be updated to $62,000 in the next release.
Idaho
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $55,300.
Administrative Reserve – effective January 1, 2025
The wage base Increased to $55,300.
Workforce Development Training Fund – effective January 1, 2025
The wage base Increased to $55,300.
Indiana
State Tax – effective January 1, 2025
The tax rate Decreased to 3%
County Taxes – effective January 1, 2025
- Floyd County Tax Increased to 1.89%
- Gibson County Tax Increased to 1.3%
- Jay County Tax Increased to 2.5%
- Monroe County Tax Increased to 2.14%
- Rush County Tax Increased to 2.15%
- Switzerland County Tax Increased to 1.45%
Illinois
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $13,916.
Iowa
State Tax – effective January 1, 2025
The tax has changed from withholding brackets to a flat rate of 3.8%, with deductions based on the employee’s marital status.
- The value of an annual "Other (Single)" or "Married Filing Jointly, with Spouse with Earned Income" deduction is $12,000
- The value of a "Head of Household" deduction is $18,050
- The value of a "Married Filing Jointly, with Spouse with No Earned Income" deduction is $24,050
Note: Additional marital status values and a new flag for spouse employed will be on a future tax update.
Kentucky
State Tax – effective January 1, 2025
The standard deduction Increased to $3,270.
Breathitt County OLF – effective January 1, 2025
The wage base increased to $176,100.
Covington OLF – effective January 1, 2025
The wage base increased to $176,100.
Crestview Hills OLF – effective January 1, 2025
The wage base increased to $176,100.
Fort Wright OLF – effective January 1, 2025
The wage base increased to $176,100.
Kenton County – effective January 1, 2025
The wage base increased to $176,100.
Lyndon OLF – effective January 1, 2025
The rate Decreased to .75%.
Maine
Competitive Skills Scholarship Fund – effective January 1, 2025
The tax rate increased to .14%.
Paid Family and Medical Leave – Action Required - effective January 1, 2025
Maine Paid Family and Medical Leave is a new tax for 2025. The total tax rate is either 0.5% or 1%, based on the size of the employer. The wage base matches the Social Security wage base ($176,100 for 2025).
More information can be found on the Maine Department of Labor's website: Maine Paid Family and Medical Leave.
While the total tax amount is ultimately the employer's responsibility, the employer may require the employee to contribute a portion of the total amount due:
- Employers with 15 or more covered employees are responsible for the entire 1% premium, but may deduct up to 50% of the premium, or 0.5%, from the employee wages.
- Employers with fewer than 15 employees are responsible for only 50% of the premium, or 0.5% total, but may deduct up to 100% of that amount from employee wages.
By default, the engine will assume that the employer is contributing the entire amount.
When calculating Maine Paid Family and Medical Leave, it is highly recommended that you always set up both the employee and employer portions of this tax, even if one is expected to calculate a $0 amount.
New parameters have been added to support Maine Paid Family and Medical Leave:
Name | Additional Information |
Employee Contribution Percentage | The percentage of the total tax that the employer requires the employee to contribute. If no value is specified, the contribution percentage equals 0. |
Number of Employees | Used to determine the default employer contribution for the tax |
Unemployment Program Administration Fund – effective January 1, 2025
The rate increased to .16%.
Michigan
State Tax – effective January 1, 2025
The personal exemption amount Increased to $5,800.
State Unemployment Tax – effective January 1, 2025
The taxable wage base Decreased to $9,000.
Minnesota
State Tax – effective January 1, 2025
The tax brackets and values used in the Computer Formula have been updated. The annual withholding allowance Increased to $5,200. The nonresident exemption threshold Increased to $14,950.
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $43,000.
Additional Assessment – effective January 1, 2025
The tax has been reactivated with a rate of 5% and a wage base of $43,000.
Workforce Development Fee – effective January 1, 2025
The taxable wage base Increased to $43,000.
Missouri
State Tax – effective December 26, 2024
Corrected an issue when an employee had a value in Reduced Withholding Amount and the regular wages were $0 (zero). Previously the reduced amount was collected, going forward the tax will not be collected if there are no taxable wages.
State Tax – effective January 1, 2025
The tax brackets and rates have been updated.
Annual Standard deductions have increased for all filing statuses:
-
- Single: $15,000
- Married and Spouse Works: $15,000
- Married Filing Separate: $15,000
- Married and Spouse Does Not Work: $30,000
- Head of Household: from $22,500
The supplemental flat tax rate decreased from 4.8% to 4.7%
Montana
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $45,100.
Administrative Fund Tax – effective January 1, 2025
The taxable wage base rises to $45,100.
Nebraska
State Tax – effective January 1, 2025
The tax brackets and rates have been updated. Annual withholding allowance Increased to $2,360.
New Mexico
State Tax – effective January 1, 2025
The tax brackets and rates have been updated.
New Jersey
Family Leave Insurance Tax – effective January 1, 2025
The tax rate Increased to .33% and the wage base Increased to $165,400.
Ohio
Alexander LSD – effective January 1, 2025
The tax expired in 2024 and was not renewed for 2025. It has been deactivated.
Bainbridge Twp. Aurora JEDD – effective January 1, 2025
Established with a rate of 2%, a tax credit of 100%, and a credit limit of 2%. It will be administered by RITA.
Bluffton City Tax – effective January 1, 2025
The tax rate Increased to 1.65%. The credit limit increased to 1.65%.
Brimfield-Kent JEDD Tax – effective January 1, 2025
The tax rate Increased to 2%.
Brimfield Tallmadge JEDD Tax – effective January 1, 2025
The tax rate Increased to 2%.
Clinton-Massie LSD – effective January 1, 2025
The tax expired in 2024 and was not renewed for 2025. It has been deactivated.
Coldwater City Tax – effective January 1, 2025
The tax rate Increased to 1.5%. The credit limit Increased to 1.5%
Danville LSD – effective January 1, 2025
The tax rate Increased to 1.75%.
Jefferson Township-Whitehall JEDD Tax – effective November 19, 2024
The tax has been deactivated.
Mifflin City Tax – effective January 1, 2025
The tax has been reactivated with a rate of 1%, a tax credit of 0%, and a credit limit of 0%.
Mount Gilead EVSD – effective January 1, 2025
The tax rate decreased to .75%.
New Concord City Tax – effective January 1, 2025
The tax will be administered by RITA.
Rushville City Tax – effective January 1, 2025
Established with a rate of 1% for residents and non-residents. There is no credit or credit limit applicable for this tax. It will be administered by RITA.
Sidney City Tax – effective January 1, 2025
The tax rate Decreased to 1.5% and the credit limit Decreased to 1.5%.
Waynesfield City Tax – effective January 1, 2025
The tax will be administered by RITA.
Oklahoma
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $28,200.
Technology Fund Surcharge Tax – effective January 1, 2025
The wage base Increased to $28,200.
Oregon
Family Leave Insurance – Action Required - Effective December 26, 2024
Corrected an issue where the tax limits for OR FLI and ER OR FLI were not applied correctly on the Paychecks and Adjustments (PR302000) form for paychecks of the Regular type.
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $54,300.
Pennsylvania
Aldan Borough, William Penn School District – effective January 1, 2025
The municipal resident and nonresident EIT rates increase to 1%. The total resident EIT rate Increased to 1%.
Altoona City, Altoona Area School District – effective January 1, 2025
The municipal resident rate EIT Increased to 1.2%. The total resident EIT rate Increased to 1.7%.
East Hanover Township, Northern Lebanon School District – effective January 1, 2025
The municipal LST Increased to $26. The total LST amount Increased to $26. The municipal low income exemption (LIE) amount Increased to $12,000.
East Pikeland Township, Phoenixville Area School District – effective January 1, 2025
The school district resident EIT rate Increased to .6%. The total resident EIT rate Increased to 1.35%.
East Whiteland Township, Great Valley School District – effective January 1, 2025
The municipal resident EIT rate Increased to .8%. The total resident EIT rate Increased to .8%.
Easton City, Easton Area School District – effective January 1, 2025
The municipal nonresident EIT rate Increased to 1%.
Easttown Township, Tredyffrin-Easttown School District – effective January 1, 2025
The municipal resident and nonresident EIT rates increase to .5%. The total resident EIT rate Increased to .5%.
Elk Township, Oxford Area School District – effective January 1, 2025
The municipal resident rate Increased to .6%. The total resident EIT rate Increased to 1.1%.
Heidelberg Township, Northwestern Lehigh School District – effective January 1, 2025
The municipal resident EIT rate Increased to .675%. The total resident EIT rate Increased to 1.175%.
Manor Township, Penn Manor School District – effective January 1, 2025
The municipal LST Increased to $52. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
McKean Township, General Mclane School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Mount Joy Township, Gettysburg Area School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Mount Joy Township, Littlestown Area School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
New Cumberland Borough, West Shore School District – effective January 1, 2025
The municipal LST Increased to $52. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Penn Township, Avon Grove School District – effective January 1, 2025
The municipal resident and nonresident EIT rates increase to .75%. The total resident EIT rate Increased to .75%.
Phoenixville Borough, Phoenixville Area School District – effective January 1, 2025
The school district resident EIT rate Increased to .6%. The total resident EIT rate Increased to 1.1%.
Rice Township, Crestwood School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Ridley Park Borough, Ridley School District – effective January 1, 2025
The municipal resident and nonresident EIT rates increase to 1%. The total resident EIT rate Increased to 1%. The municipal low-income exemption (LIE) amount Increased to $12,000.
Schuylkill Township, Phoenixville Area School District – effective January 1, 2025
The school district resident EIT rate Increased to .6%. The total resident EIT rate Increased to 1.35%.
Shamokin City, Shamokin Area School District – effective January 1, 2025
The municipal resident and nonresident EIT rates decrease to .5%. The total resident EIT rate Decreased to 1%.
Shamokin Township, Shamokin Area School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Spring City Borough, Spring-Ford Area School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Summit Hill Borough, Panther Valley School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Tidioute Borough, Warren County School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
Upper Providence Township, Rose Tree Media School District – effective January 1, 2025
The municipal resident and nonresident EIT rates increase to 1%. The total resident EIT rate Increased to 1%. The municipal low-income exemption (LIE) amount Increased to $12,000.
Uwchlan Township, Downingtown Area School District – effective January 1, 2025
The municipal resident EIT rate Increased to .75%. The total resident EIT rate Increased to 1.25%.
Washington City, Washington School District – effective January 1, 2025
The municipal resident EIT rate Decreased to .5. The nonresident EIT rate Decreased to 1%. The total resident EIT rate Decreased to 1%.
White Oak Borough, Mckeesport Area School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52. The municipal low income exemption (LIE) amount Increased to $12,000.
White Oak Borough, Norwin School District – effective January 1, 2025
The municipal LST Increased to $47. The total LST amount Increased to $52.
Rhode Island
State Tax – effective January 1, 2025
The tax brackets have been updated. The amount of an annual withholding exemption becomes $0 when annual wages are more than $283,250.
South Carolina
State Tax – effective January 1, 2025
The tax brackets have been updated. The annual personal allowance Increased to $4,860. The maximum standard deduction amount Increased to $7,300. The supplemental flat rate Decreased to $6.2%.
Utah
State Unemployment Tax – effective January 1, 2025
The taxable wage base Increased to $48,900.
Washington
Family and Medical Leave Insurance Tax – effective January 1, 2025
Employees will pay 71.52% (previously 71.43%) and employers will pay 28.48% (previously 28.57%). An employer can elect to withhold the entire 71.52% from an employee's paycheck, or they can cover some or all of the premiums on the employee's behalf. The wage base Increased to $176,100.
West Virginia
State Tax – effective January 1, 2025
The tax brackets have been updated.
Wyoming
State Unemployment Tax – effective January 1, 2025
The wage base Increased to $32,400.