Release: 2026-5.52.0
Update: June 16, 2026
Canada
Quebec
Income Tax – Effective June 16, 2026
A new Additional Provincial Withholding Amount field has been added for Quebec employees, allowing the additional provincial tax withholding to be specified at both the company and employee level.
United States
Federal
Social Security (FICA and ER FICA) – Effective June 16, 2026
We have expanded support for the Calculate Tax by Wage Base miscellaneous parameters to include taxes with an annual wage base.
By default, taxes are calculated up to the tax limit, which is determined by the wage base multiplied by the rate. When Calculate Tax by Wage Base is set to true, the calculation stops at the wage base instead.
Medicare (MEDI AND ER MEDI) – Effective June 16, 2026
We have expanded support for the Calculate Tax by Wage Base miscellaneous parameters to include taxes with an annual wage base.
By default, taxes are calculated up to the tax limit, which is determined by the wage base multiplied by the rate. When Calculate Tax by Wage Base is set to true, the calculation stops at the wage base instead.
Unemployment (FUTA) – Effective June 16, 2026
We have expanded support for the Calculate Tax by Wage Base miscellaneous parameters to include taxes with an annual wage base.
By default, taxes are calculated up to the tax limit, which is determined by the wage base multiplied by the rate. When Calculate Tax by Wage Base is set to true, the calculation stops at the wage base instead.
W-2 Form – Effective for 2026 W-2 Form
Starting with the 2026 W-2 form, the IRS is splitting the existing Box 14 into two separate boxes:
- Box 14a – Other: Used for miscellaneous information not reported elsewhere on the W-2.
- Box 14b – Treasury Tip Occupational Code(s): Used to report tip occupational codes as required by the IRS.
What this means for you:
Your existing Box 14 setup will continue to work and automatically carry over to the new Box 14a. However, you may notice a change in how the reporting type is labeled — this is intentional and improves clarity around what information is being reported in each box.
No action is required to maintain your current reporting. If you use Box 14 to report miscellaneous wage information, your data will flow correctly into the new Box 14a on the 2026 W-2.
The 2026 W-2 form now supports reporting up to two Treasury Tip Occupational Codes in Box 14b, in line with updated IRS requirements. To support this, the following changes have been made in Acumatica Payroll:
What's new
- A second occupational code field, Treasury Tipped Occupation Code 2, has been added to both the Employee Tax Settings and Tax Maintenance screens.
- The original occupational code field has been renamed to Treasury Tipped Occupation Code 1 for clarity.
Where to find these fields
- Employee Pay Settings (EPS) → Tax Settings tab
What this means for you
If your business is subject to OBBBA tip-reporting requirements, you can now assign up to two Treasury Tip Occupational Codes to each employee. Both codes will flow through to Box 14b on the employee's 2026 W-2.
Employees with an existing, configured occupational code will see it as Treasury Tipped Occupation Code 1; no re-entry is needed.
All States
State Income Tax – Effective April 10, 2026
When the engine applies the current aggregation supplemental method when computing state income tax, it now rounds the combined regular and supplemental tax according to the state’s rounding requirements before deriving the supplemental portion. This results in supplemental withholding that follows the intended rounding sequence.
All States and Locals
SUTA, ER SUTA, SUTA SC, PFML, ER SDI, SUI, HCSF, SCT, MHT, TIF, CITY, OLF
We have expanded support for the Calculate Tax by Wage Base miscellaneous parameters to include taxes with an annual wage base.
By default, taxes are calculated up to the tax limit, which is determined by the wage base multiplied by the rate. When Calculate Tax by Wage Base is set to true, the calculation stops at the wage base instead.
Colorado
Colorado Occupational Privilege Tax (OPT) – Effective June 16, 2026
In multi-city Colorado payroll scenarios, the engine now determines the primary city using only active city OPT taxes for the pay date.
Previously, a deactivated city tax (for example, Aurora) could still be considered when determining the primary work location. In cases where an employee worked more hours in a deactivated city than in an active city, this could prevent the active city’s OPT from being calculated.
With this update, the engine dynamically evaluates whether a city OPT tax is enabled for the pay date. Deactivated city taxes are ignored in primary city determination, ensuring that applicable active city taxes (such as Denver) are calculated correctly when wage thresholds are met.
Paid Family Medical Leave (PFML) – Effective June 16, 2026
We optimized the code responsible for exempting PFML for consistency and maintainability. Tax calculation results remain unchanged, and employer-paid scenarios for exempt employees continue to behave as before.
Delaware
State Unemployment Tax – Effective January 1, 2026
The new employer rate decreased from 1.2% to 1% for residents and non-residents. As a reminder, the Delaware State Unemployment Tax wage base increased from $12,500 to $14,500,
Op & Tech Surcharge Tax - Effective January 1, 2026
Effective January 1, 2026, the Delaware Op & Tech Surcharge employer tax has been added at a 0.2% rate and a $14,500 wage base.
This surcharge applies to all employers subject to Delaware unemployment tax. The default new-employer rate has been set to 0.2%.
This tax is not a new tax burden. The Delaware State Unemployment tax rate has decreased from 1.2% to 1%, and the 0.2% difference has been separated into this new surcharge tax to allow payroll systems to compute and report it independently, as per the Delaware Division of Unemployment Insurance guidelines
Illinois
State Unemployment Tax – Effective July 1, 2026
Employer contributions to an employee's 401(k) and Roth 401(k) will no longer be considered taxable wages for Illinois State Unemployment tax purposes, following Section 2730.155. The tax rate remains at 3.35%, and the wage base remains at $14,250.
As this is a mid-year change to benefit taxability, clients will not be able to use the Tax Maintenance ~ Tax Settings ~ ‘Check the year-to-date tax amounts paid’ parameter for Illinois State Unemployment Tax after July 1, 2026. The engine will apply adjustments in accordance with the tax rules in effect on the pay date. Clients can use ‘Check the year-to-date tax amounts paid’ again starting Jan 1, 2027.
Kansas
State Income Tax – Effective June 16, 2026
The tax engine no longer returns negative values in the “Reportable wages” subaccount. Previously, in certain multi-state scenarios, “Reportable wages” could appear as a negative amount when a state had no wages but was allocated pre-tax benefits that were not prorated by state wages. This most commonly occurred when prorateUsingStateWages = false, allowing benefit amounts to be attributed to a state with zero wages.
With this update, “Reportable wages” values that would otherwise be negative are returned as 0 instead.
Kentucky
Brandenburg OLF and Irvington OLF Tax – Effective June 16, 2026
We resolved an issue that occurred when both Brandenburg and Irvington OLF taxes were included in the same payroll run. The annual wages for one city would overwrite the other, causing the wage threshold to check to use the wrong value for one of the two cities. Single city payroll runs were not affected.
Irvington OLF – Action Required - Effective November 24, 2025
A new Occupational License Fee (OLF) has been added for the City of Irvington. The tax applies to employees working inside the city limits of Irvington who earn $25,000 or more per year (all wages are taxed once the employee's annual wages reach or exceed $25,000). Employees earning less than the annual $25,000 threshold are not subject to the tax. The resident and nonresident rate is 0.25% and there is no wage base.
Action Required: To ensure accurate withholding, the following jurisdiction parameter has been added to handle the unique annual threshold of $25,000:
- Annual Wages: The employee’s expected total wages for the calendar year
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.
Grant County OLF Tax – Effective July 1, 2026
The tax has decreased from 2.5% to 2.0%, according to Grant County Ordinance No. 0006-2026-0298.
Massachusetts
Employer Medical Assistance Contribution (EMAC) – Effective June 16, 2026
Subject wages quarter-to-date (QTD) for MA employer EMAC now caps at the EMAC wage base when year-to-date (YTD) is at the cap, so QTD/YTD subject and excess wage reporting stay consistent with the wage base rules.
Previously, QTD subject wages for Massachusetts employer EMAC could be too low when wages plus in-scope employer amounts (for example, employer retirement contributions counted in the SUTA wage basis) brought YTD subject wages up to the $15,000 EMAC wage base. In those cases, subject wages QTD did not cap at the wage base the way subject wages YTD did.
Please note that there was no change to the actual tax calculation with this update. Current-period MA employer EMAC is still based on current-period subject wages × rate. This update corrects QTD reporting and cap treatment; it does not change how period tax is calculated.
Minnesota
Paid Family Medical Leave (PFML) – Effective June 16, 2026
When an employer picks up part or all of the employee's Minnesota PFML contribution, the PFML tax is now recalculated on wages increased by the pickup amount. This aligns Minnesota PFML subject wages with Minnesota SUTA subject wages, as required for quarterly reporting.
Example: employer pickup increases PFML subject wages
An employee earns $1,000 in wages and the employer covers 100% of the PFML contribution.
Previous behavior
- PFML subject wages: $1,000
- Employer PFML tax: $8.80
- Taxable pick-up amount: $4.40
- SUTA subject wages: $1,004.40
Previously, the pickup amount increased SUTA wages, but PFML continued to calculate on the original wages, resulting in a mismatch between PFML and SUTA subject wages.
Current behavior
- PFML subject wages: $1,004.42
- Employer PFML tax: $8.84
- Taxable pick-up amount: $4.42
- SUTA subject wages: $1,004.42
With this update, PFML is recalculated using wages that include the employer pickup, ensuring PFML and SUTA subject wages remain aligned.
New York
Paid Family Leave (PFL) – Effective March 25, 2026
In multi-state payroll scenarios, the engine now returns gross wages based solely on the taxing state, excluding wages earned in other states.
Note: This change impacts gross wage reporting only. Subject wages and tax calculations remain unchanged and may still consider multi-state wages where applicable.
Ohio
JEDD Tax – Effective June 16, 2026
JEDD taxes in Ohio now correctly aggregate wages when an employee works in multiple locations within the same JEDD. Previously, only one location’s wages were considered, which could result in underwithholding.
When multiple work locations map to the same JEDD, the engine now sums wages across those locations and calculates tax on the combined amount.
This change does not affect scenarios with a single work location or Ohio city taxes that are not associated with a JEDD.
Miami Township-Dayton JEDD Tax – Effective January 1, 2026
After an internal audit, the tax credit and credit limit have been set to 0%, effective January 1, 2026. The tax rate remains 2.25%
Mount Eaton City Tax – Effective July 1, 2026
The tax will be administered by RITA (Regional Income Tax Agency). The tax rate remains 1.0%, with a 100% credit for taxes paid to other municipalities, up to a maximum credit of 1.0%.
New Lexington City Tax – Effective July 1, 2026
The tax will be administered by RITA (Regional Income Tax Agency). The tax rate remains 1.0%.
Warren-Champion JEDD Tax - Effective January 1, 2026
A new JEDD has been established by the City of Warren and Champion Township with a rate of 2.5%. The tax is levied on wages paid to persons employed within the JEDD and will be administered and collected by the City of Warren.
The JEDD comprises approximately 62.88 acres of land and is currently vacant, in the early stages of development. Only construction workers who are present on site are subject to the JEDD tax. Employers who began withholding after the effective date will likely owe taxes at the end of the year. Regular occupancy is not expected until late 2026 or early 2027.
Warren-Howland-Warren JEDD Tax - Effective January 1, 2026
A new JEDD has been established by the City of Warren, the Township of Warren, and the Township of Howland with a rate of 2%. The tax applies to wages earned by individuals working within the JEDD. The City of Warren is responsible for administering and collecting the tax.
The JEDD is approximately 643.853 acres of land comprising parcels 39-543700, 39-569360, 28-864140, 38-848000, 43-31688, 29-000500, 39-569360, 43-316888, 28-903738, 28-694800, and 43-312900. The site will be home to Kimberly-Clark Corporation and is currently in the early stages of development. Only construction workers who are present on site are subject to the JEDD tax. Employers who began withholding after the effective date will likely owe taxes at the end of the year. Regular occupancy is not expected until early 2027.
Waverly City Tax – Effective September 22, 2025
Effective January 1, 2026, the Waverly City tax credit and credit limit have been reduced to 0% per Ordinance #88-2025, which has passed, but is not yet published. The city will no longer offer credits for taxes paid to other municipalities. Also, according to written confirmation from the Waverly City tax administrator, the tax rate remains 1% for 2026.
Oregon
Paid Family Medical Leave (PFML) – Effective June 16, 2026
We optimized the code responsible for exempting PFML for consistency and maintainability. Tax calculation results remain unchanged, and employer-paid scenarios for exempt employees continue to behave as before.
Eugene Community Safety Payroll Tax – Effective March 25, 2026
In multi-state payroll scenarios, the engine now returns gross wages based solely on the taxing state, excluding wages earned in other states.
Note: This change impacts gross wage reporting only. Subject wages and tax calculations remain unchanged, and you may still consider multi-state wages where applicable.
Pennsylvania
State Unemployment Tax – Effective January 1, 2026
For Pennsylvania employee SUI, the miscellaneous jurisdiction parameter State Wages Only is terminated as of December 31, 2024. The tax does not use that setting.
Subject wages for this tax use SUTA gross wages (the same basis as Pennsylvania employer SUTA), including for employees with wages in more than one state—not regular and supplemental wage buckets alone.
Township of Wilkes Barre School District EIT (408852) – effective January 1, 2026
- The total resident EIT has increased from 1.25% to 1.5%
- The municipal resident EIT has increased from 0.75% to 1%
- The school district EIT rate remains 0.5%
- The municipal nonresident EIT rate remains 1%
Township of Miles Penns Valley Area School District LST (147003) – effective January 1, 2026
- The total LST amount has increased from $0 to $52
- Municipal LST has increased from $0 to $52
- School District LST remains $0
- A municipal LST low income exemption (LIE) increased from $0 to $12,000
Utah
State Income Tax – Effective June 1, 2026
The tax rate has decreased from 4.5% to 4.45%.
The base allowance (Utah Schedule 7, line 3) increased from $450 to $485 for single filers and from $900 to $970 for married filers.
The annual wage subtraction amount (Utah Schedule 7, line 4) increased from $9,107 to $9,348 for single filers and from $18,213 to $18,696 for married filers.
Washington
Paid Family Medical Leave (PFML) – Effective June 16, 2026
The tax calculations are now returned when the tax is set up, even when the calculated tax amount is $0 (for example, when there are no applicable wages). Previously, no tax calculation was returned in these scenarios, which was inconsistent with other taxes in the engine.
In multi-state payroll scenarios, the engine now returns gross wages based solely on the taxing state, excluding wages earned in other states.
Note: This change impacts gross wage reporting only. Subject wages and tax calculations remain unchanged and may still consider multi-state wages where applicable.
Long-Term Insurance (LTI) – Effective June 16, 2026
The tax calculations are now returned when the tax is set up, even when the calculated tax amount is $0 (for example, when there are no applicable wages). Previously, no tax calculation was returned in these scenarios, which was inconsistent with other taxes in the engine.
Employers in Washington State can now set the Employer Elected Percentage for WA Long-Term Care Insurance (including 100%) in Tax Settings without encountering a paycheck calculation error. The employer-paid portion of WA LTI is now calculated correctly and is consistent with existing WA Employer-Paid Family and Medical Leave Insurance (WA ER FLI) behavior.
In multi-state payroll scenarios, the engine now returns gross wages based solely on the taxing state, excluding wages earned in other states.
Note: This change impacts gross wage reporting only. Subject wages and tax calculations remain unchanged and may still consider multi-state wages where applicable.
West Virginia
State Income Tax – Effective January 1, 2026
Income Tax brackets and rates have been updated.
Supplemental withholding calculations reflect the updated annual rates.
The value of an exemption remains $2,000.
This update is based on the published IT-100.2.A Percentage Method of Withholding tables, which differ from the 2026 Income Tax Rate Cut overview, that presents adjusted rates. These changes were enacted under SB 392, signed into law on March 31, 2026.
Weirton Municipal Service Fee Tax – Effective May 17, 2026
The rate has increased to $5 per employee per week from $2 per employee per week for both residents and non-residents, per Ordinance No. 2272.
Wisconsin
State Income Tax – Effective June 16, 2026
The tax engine no longer returns negative values in the “Reportable wages” subaccount. Previously, in certain multi-state scenarios, “Reportable wages” could appear as a negative amount when a state had no wages but was allocated pre-tax benefits that were not prorated by state wages. This most commonly occurred when prorateUsingStateWages = false, allowing benefit amounts to be attributed to a state with zero wages.
With this update, “Reportable wages” values that would otherwise be negative are returned as 0 instead.
