Release:    2026-1.48.0          

Update: February 9, 2026

Canada

Alberta

Income Tax – Effective February 9, 2016

Corrected an issue: when an employee works in Alberta and has maxed out CPP contributions, the total income tax was correct; however, the distribution between federal and provincial taxes was off.

United States

Colorado

Paid Family Medical Leave (PFML) – effective January 1, 2025

We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

Illinois

Income Tax – effective January 1, 2026

The tax  has been updated:

• The value of a basic allowance (Form IL-W-4, Line 1) increased from $2,850 to ** $2,925.
• The value of an additional allowance (Form IL-W-4, Line 2) remains $1,000.
• The tax rate remains 4.95%.

Iowa

Income Tax – effective January 1, 2026

 Iowa released the revised Form IA W-4 and updated the “Married filing jointly & Qualifying Surviving Spouse” filing status into two distinct values:

• “Married filing jointly”, M
• “Qualifying Surviving Spouse”, QS

Kentucky

Breathitt County OLF – effective January 1, 2025

The wage base increased from $176,100 to $184,500 to match the FICA wage base. The tax rate remains 2%.

Maine

State Unemployment – effective January 1, 2026

The tax new-employer rate has increased from 2.11% to 2.23%. The wage base remains $12,000.

Unemployment Program Administrative Fund – effective January 1, 2026

The rate increased from 0.16% to 0.17%. The wage base remains $12,000.

Maryland

Income Tax – effective January 1, 2025

The tax engine has been updated to align with Maryland's online calculator:

• Added four new lower-income tiers with the following graduated rates: 2%, 3%, 4%, and 4.75%
• Updated the standard deduction for the married filing status from $3,350 to $6,700

Frederick County Tax – effective January 1, 2025

• Removed progressive bracket treatment; the applicable county rate is now applied uniformly to total taxable income based on the income threshold reached
• Updated the standard deduction for the married filing status from $3,350 to $6,700

Minnesota

Income Tax – effective January 1, 2026

The withholding brackets were updated. The value of an annual withholding allowance increased from $5,200 to $5,300. The non-resident withholding threshold increased from $14,950 to $15,300

The supplemental tax rate remains 6.25%.

Mississippi

Income Tax – effective January 1, 2026

The tax rate for wages above $10,000 decreased from 4.4% to 4%. The standard deduction amounts for each filing status remain the same for 2026. 

Ohio

Income Tax – effective January 1, 2026

The tax supplemental rate decreased from 3.5% to 2.75%.

Unemployment Tax – effective February 9, 2026

A new 'Is Corporate Officer' option is now available on the Tax Settings tab of Employee Payroll Settings. This field will be utilized when generating the OH UCO-2QR eFile Report under Government Reporting.

Bowling Green CSD – effective January 1, 2026

The tax rate increased from 0.5% to 1.25%.

Circleville-Pickaway Twp JEDD – effective January 1, 2026

The tax rate increased from 2% to 2.5%. The credit and credit limit remain 0%.

Clinton-Massie LSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Coldwater EVSD – effective January 1, 2026

The tax rate increased from 0.5% to 1%.

East Palestine CSD – effective January 1, 2026

The tax was deactivated and is no longer in effect for 2026.

Edon-Northwest LSD – effective January 1, 2026

The tax was deactivated and is no longer in effect for 2026.

Findlay CSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Hanover City – effective January 1, 2026

The tax credit decreased from 100% to 0%, and the credit limit decreased from 1% to 0%. The tax rate remains 1%.

Miami Township-Dayton JEDD – effective January 1, 2026

The tax rate increased from 1.75% to 2.25%. The tax credit is 100% and the credit limit is 2.25%.

Milton-Union EVSD – effective January 1, 2026

The tax rate increased from 1.25% to 2%.

Trimble LSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Westerville CSD – effective January 1, 2026

The tax was reactivated with a rate of 0.75%.

Oregon

Income Tax – effective January 1, 2026

The tax was updated:

• The federal tax adjustment increased from $8,500 to $8,750
• The value of an annual allowance increased from $256 to $263
• The standard deductions have changed:
• Single with fewer than 3 allowances: increased from $2,835 to $2,910
• Single with 3 or more allowances and Married: increased from $5,670 to $5,820

• The brackets and constants in the formula have changed

The supplemental tax rate remains 8%.

Oregon Transit – effective January 1, 2026

 The Oregon Department of Revenue has paused implementation of the increase while a voter referral petition is under review and has directed employers to continue withholding at the 0.1% rate. 

From the Oregon Department of Revenue:

In a special session in 2025, the Legislature adopted amendments to ORS 320.550 to increase the rate to two-tenths of 1 percent or .002 beginning January 1, 2026. After the special session, petitioners began collecting signatures for Initiative Petition 302, which would refer HB 3991 to Oregon voters. On December 12, 2025, petitioners submitted signatures to the Oregon Secretary of State to refer the bill to the voters. While signatures are being validated, the DOR is pausing implementation of the rate increase.

Please continue to withhold at the rate of one-tenth of 1 percent or .001. 

Paid Family Medical Leave (PFML) – effective January 1, 2025

We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

Rhode Island

State Unemployment – effective January 1, 2026

The tax was updated:

• The main wage base increased from $29,800 to $30,800
• The high tier wage base increased from $31,300 to $32,300

The new employer rate remains 1.21%.

 Job Development Surcharge – effective January 1, 2026

The tax was updated:

• The main wage base increased from $29,800 to $30,800
• The high tier wage base increased from $31,300 to $32,300

The new employer rate remains 0.21%.

State Disability (TDI/TCI) – effective January 1, 2026

The tax rate decreased from 1.3% to 1.1% and the wage base increased from $89,200 to $100,000.00.

Vermont

Income Tax – effective January 1, 2026

The tax was updated:

• The tax tables and brackets (page 8) have been updated
• The value of withholding allowance increased from $5,300 to $5,400

Virgin Islands

State Unemployment – effective January 1, 2026

The tax wage base increased from $31,100 to $32,100.

Release:    2026-2.49.0          

Update: March 11, 2026

United States

Federal

HSA Catch-up - effective date March 11, 2026

A new flag, Use Catch-Up Contribution Limits (HSA), has been added to Employee Payroll Settings ~ Tax Settings. When enabled for employees age 55 or older, the system will apply the applicable 2026 HSA catch-up contribution limits:

• Single coverage: $5,300
• Family coverage: $9,550

American Samoa

State Unemployment Tax – effective January 1, 2026

As a result of an internal audit, the American Samoa State Unemployment Tax was deactivated. Although the territory does have a local income tax system, there is no separate territorial unemployment insurance program, and no SUTA is remitted.

Delaware

State Unemployment – effective January 1, 2026

The tax wage base increased from $12,500 to $14,500. The new employer rate remains 1.2% in 2026 pending any updates from the agency.

Training Tax – effective January 1, 2026

The tax rate decreased from 0.126% to 0.11%. Additionally, the wage base increased from $12,500 to $14,500.

Kentucky

Warsaw OLF – Effective January 1, 2026

The wage base increased from $176,100 to $184,500. The tax rate remains 1.75%.

Louisiana

Income Tax – effective January 1, 2026

The tax standard deductions were updated:

• Single or married filing separately: updated from $12,500 to $12,875
• Married filing jointly, qualifying surviving spouse, or head of household: updated from $25,000 to $25,750

The tax rate remains 3.09%.

Massachusetts

Income Tax – effective January 1, 2026

The tax personal exemption amount has increased from $5,800 to $5,900. 

The tax rate remains 4.25%.

 Paid Family and Medical Leave (PFML) – ACTION REQUIRED – effective March 11, 2026

We resolved an issue in which Massachusetts PFML taxable wages were erroneously doubled. This occurred when a benefit was configured with Affects Tax Calculation enabled, and the Impact on Taxable Wage under US Tax Settings was set to a value other than Per Calculation Engine, for example, when the configuration was explicitly including or excluding specific taxes.

Action Required

Please verify your Massachusetts PFML taxable wages — they should match your Massachusetts Unemployment taxable wages. Make any necessary adjustments to correct prior records.

State Unemployment – effective January 1, 2026

The new employer rate increased from 2.13% to 2.42%. The wage base remains $15,000.

Michigan

Benton Harbor City Tax – effective January 1, 2026

The Total Allowances miscellaneous parameter has been added to the Benton Harbor City Tax. When calculating taxable wages, the engine now subtracts $750 per allowance claimed from the employee’s annual income. For tax year 2026, the allowance value is $750.

Per agency guidance, the terms “allowances” and “exemptions” are used interchangeably.

Minnesota

Paid Family and Medical Leave (PFML) – ACTION REQUIRED – effective March 11, 2026

We resolved an issue in which Minnesota PFML taxable wages were erroneously doubled. This occurred when a benefit was configured with Affects Tax Calculation enabled, and the Impact on Taxable Wage under US Tax Settings was set to a value other than Per Calculation Engine, for example, when the configuration was explicitly including or excluding specific taxes..

Action Required

Please verify your Minnesota PFML taxable wages — they should match your Minnesota Unemployment taxable wages. Make any necessary adjustments to correct prior records.

Paid Family and Medical Leave (PFML) – effective January 1, 2026

The default contribution percentage for a qualified small employer has been updated from 50 to 66.6667.

North Dakota

Income Tax – effective January 1, 2026

The tax brackets were updated for all filing statuses. The value of an annual allowance remains $5,050 and the supplemental rate remains 1.5%.

Northern Mariana Islands

State Unemployment Tax – effective January 1, 2026

As a result of an internal audit, the Northern Mariana Islands State Unemployment Tax was deactivated. Although the territory does have a wage and salary tax, there is no separate unemployment insurance program, and no SUTA is remitted.

Ohio

Berkshire Township JEDD I & JEDD II – effective January 1, 2024

Tax credits were updated to 50%, and the credit limits were updated to 0.925%.

College Corner City Tax – effective September 13, 2025

The tax was deactivated and is no longer in effect. 

Delta City Tax – effective January 1, 1900

The tax credit was corrected from 66.67% to 100% effective January 1, 1900, to reflect the correct credit structure for all supported periods. The tax rate remains 1.5% and the credit remains 1% for 2026.

Gallipolis City Tax – effective January 1, 2026

The tax rate increased from 1% to 1.5% and the credit limit increased from 1% to 1.5%. The credit remains 100%. 

Upper Sandusky City Tax – effective December 17, 2025

The tax rate increased from 1% to 1.75%. The credit and credit limit remain 0%.

Village of Indian Hill City Tax – effective January 1, 2026

The tax rate has increased from 0.45% to 0.5%. The credit and credit limit remain 0%.

Pennsylvania

 Bethel Park, Bethel Park S D EIT– effective January 1, 2026

• The total resident EIT rate increased from 1.5% to 1.75%
• The municipal resident EIT rate has increased from 1% to 1.25%
• The school district resident EIT rate remains 0.5%

• The municipal nonresident EIT remains 0%
• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

Borough of Blain LST - West Perry School District – effective January 1, 2026

• The total LST amount increased from $0 to $52
• The municipal LST increased from $0 to $52
• The school district LST remains $0

• The municipal low income exemption (LIE) increased from $0 to $12,000
• The school district low income exemption (LIE) remains $0

Borough of Lanesboro, Susquehanna Community School District EIT

• The total resident EIT increased from 0% to 1%
• The municipal resident EIT rate has increased from 0% to 1%
• The school district resident EIT rate remains 0%

• The municipal nonresident EIT has increased from 0% to 1%
• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

Borough of Marianna LST - Bethlehem-Center School District – effective January 1, 2026

• The total LST amount increased from $10 to $15
• The municipal LST increased from $5 to $10
• The school district LST amount remains $5

• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

Bristol Township, Bristol Township S D EIT– effective January 1, 2026

• The total resident EIT rate remains 0.5%
• The municipal resident EIT rate remains 0.5%
• The school district resident EIT rate remains 0%

• The municipal nonresident EIT remains 0.5%
• The municipal low income exemption (LIE) decreased from $4,000 to $0
• The school district low income exemption (LIE) remains $0

City of Lancaster, Lampeter-Strasburg School District 

• The total LST amount decreased from $52 to $47
• The municipal LST decreased from $52 to $47
• The school district LST remains $0

• The municipal low income exemption (LIE) remains $12,000
• The school district low income exemption (LIE) remains $0

Exeter Township, Wyoming Area School District  LST - effective January 1, 2026

• The total LST amount increased from $10 to $30
• The municipal LST increased from $5 to $25
• The school district LST amount remains $5

• The municipal low income exemption (LIE) increased fro m0% to $12,000
• The school district low income exemption (LIE) remains $0

Middletown Township, Neshaminy School District EIT – effective January 1, 2026

• The total resident EIT increased from 0.5% to 1%
• The municipal resident EIT rate has increased from 0.5% to 1%
• The school district resident EIT rate remains 0%
• The municipal nonresident EIT has increased from 0.5% to 1%
• The municipal low income exemption (LIE) remains $12,000
• The school district low income exemption (LIE) remains $0

New Castle, New Castle Area S D EIT – effective January 1, 2026

• The total resident EIT rate remains 2.075%
• The municipal resident EIT rate remains 1.575%
• The school district resident EIT rate remains 0.5%

• The municipal nonresident EIT increased from 1.148% to 1.271%
• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

 Pittston, Pittston Area S D EIT – effective January 1, 2026

• The total resident EIT rate increased from 2.2% to 2.7%
• The municipal resident EIT rate increased from 1.7% to 2.2%
• The school district resident EIT rate remains 0.5%

• The municipal nonresident EIT remains 1%
• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

Township of East Brunswick, Blue Mountain School District 

• The total LST amount remains $10
• The municipal LST remains $5
• The school district LST amount remains $5

• The municipal low income exemption (LIE) increased from 0% to $12,000
• The school district low income exemption (LIE) remains $0

Upper Uwchlan Township, Downingtown Area School District LST – effective January 1, 2026

• The total LST amount increased from $10 to $52
• The municipal LST remains $42
• The school district LST increased from $0 to $42

• The municipal low income exemption (LIE) increased from $0 to $12,000
• The school district low income exemption (LIE) remains $500

Puerto Rico

Territory Income Tax – effective January 1, 2016

The tax amounts are rounded to the nearest cent rather than to the nearest whole dollar.

Based on confirmation from the Puerto Rico Department of Hacienda and a review of published guidance, there is no requirement to round withholding amounts to whole dollars. Additionally, the Developer Guide for Electronic Filing Requirements for Forms 499R-2/W-2PR explicitly instructs filers not to round. From page 18 of their guide: "DO NOT round to the nearest dollar".

State Unemployment Tax – effective January 1, 2026

The new employer rate decreased from 3.1% to 2.8%. The wage base remains $7,000.

Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

Special Assessment Tax – effective January 1, 2026

Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

North Dakota

Income Tax – effective January 1, 2026

The tax brackets were updated for all filing statuses. The value of an annual allowance remains $5,050 and the supplemental rate remains 1.5%.

Ohio

Berkshire Township JEDD I & JEDD II – effective January 1, 2024

Tax credits were updated to 50%, and the credit limits were updated to 0.925%.

We confirmed this change with the City of Delaware Income Tax Department directly.

College Corner City Tax – effective September 13, 2025

The tax was deactivated and is no longer in effect. 

Delta City Tax – effective January 1, 1900

The tax credit was corrected from 66.67% to 100% effective January 1, 1900, to reflect the correct credit structure for all supported periods. The tax rate remains 1.5% and the credit remains 1% for 2026.

Village of Indian Hill City Tax – effective January 1, 2026

The tax rate has increased from 0.45% to 0.5%. The credit and credit limit remain 0%.

South Dakota

Administrative Fee -effective January 1, 2026

The rate increased from 0.02% to 0.08%. The wage base remains $15,000.

Virgin Islands

State Unemployment – effective January 1, 2026

Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

Washington

Seattle Payroll Expense Tax – Action Required – effective January 1, 2026

The tax rates and thresholds have been updated:

Action Required: Acumatica Payroll does not currently support Payroll Expense Tax; this tax must be calculated and filed manually.

West Virginia

Romney City & Smithers City Service Fees – effective July 1, 2015

The fees are exempt for residents. As a result, the resident tax rate was updated from 1% to 0% for the Romney City Service Fee. 

Update: April 13, 2026

United States

Federal

Income Tax – effective April 13, 2026

A new flag, NRA Standard Deduction Eligible, has been added to Employee Payroll Settings ~ Tax Settings. Select to apply the delinquent employer wage base for jurisdictions with tiered SUTA wage base requirements. When the check box is cleared, the standard wage base applies.

Improved Guidance for Year-to-Date Tax Limit Check (e.g., FUTA)

For taxes with annual limits, the helper text for the "Check the year-to-date tax amount paid" option has been updated to better communicate its purpose.

Why this matters: For taxes like FUTA that have annual wage-base limits, employees who meet or exceed the limit mid-year must stop having that tax withheld. Enabling this option ensures the system automatically adjusts withholding for each pay period based on prior withholding, so taxes are collected accurately year-round.

Recommendation: This option should be enabled for all taxes with annual limits. Without it, employees who have met or exceeded the annual threshold may be over- or under-withheld.

What changed: The descriptive text for this option has been updated from:

"Recommended. Select to check the year-to-date tax amounts paid. An adjustment is made, if necessary, to gain on an employee's taxes."

To:

"Select to auto adjust tax collection, adjusting each pay period's withholding to account for previous withholding and ensure the annual target is met."

Benefits contribution limits – effective April 13, 2026

The tax engine has updated how it handles retirement benefits that share the same IRS contribution limit when those benefits use different catch-up settings.

Previously, in a rare scenario where benefits that share a contribution limit (for example, 401(k) and Roth 401(k)) used different catch-up settings, contributions could be proportionally redistributed between those benefits. This redistribution could cause a non-catch-up benefit to receive contributions even after it had reached its standard IRS limit.

With this update, when benefits that share the same contribution limit have different catch-up settings, the STE no longer redistributes contributions between them. Each benefit is instead limited and applied independently based on its applicable IRS limit. This ensures that a benefit that has reached its standard limit will not receive additional contributions.

Delaware

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

Kentucky

Elsmere OLF – effective July 1, 2026

The rate has increased from 1.25% to 1.75% (resident and nonresident).

Maine

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

Maryland

Income Tax – effective January 1, 2026

The standard deduction values have changed:

• Single filing status increased from $3,350 to $3,400
• Married filing status increased from $6,700 to $6,800

Allegany County Tax – effective January 1, 2026

The resident rate increased from 3.03% to 3.2%. As a reminder, the engine returns the combined state and county amount under the Maryland State Tax calculation.

Kent County Tax – effective January 1, 2026

The residents’ rate increased from 3.2% to 3.3%. The nonresident rate remains 2.25%. As a reminder, the county tax is included in the combined Maryland State Tax calculation.

Massachusetts

Massachusetts Employer Medical Assistance Contributions (EMAC) – ACTION REQUIRED - effective April 13, 2026

The tax engine fixed an issue where the miscellaneous parameter Override Wage Base was explicitly set to 0. Previously, a value of 0 was treated as “no override,” so the engine used SUTA year-to-date subject wages instead of the override. The engine now treats an explicitly set Override Wage Base of 0 as a valid override and uses zero for YTD gross subject wages in the calculation.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

Michigan

State Unemployment Tax – effective April 13, 2026

A new flag, Use Delinquent Wage Bas has been added to support Michigan’s tiered State Unemployment Tax (SUTA) wage base requirement. The engine previously supported the standard $9,000 taxable wage base. This update introduces support for the higher $9,500 wage base that applies to delinquent employers under Michigan law. Select to apply the delinquent employer wage base for jurisdictions with tiered SUTA wage base requirements. When the check box is cleared, the standard wage base applies.

Minnesota

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

Ohio

Jersey Township JEDD – effective January 1, 2026

A new JEDD with a rate of 2%. The JEDD is administered by the City of Heath. The JEDD contained 14 parcels, with many of them in active development.

Union Township JEDD – effective January 1, 2026

A new JEDD has been established by Union Township and the City of Heath with a rate of 2%. The JEDD is administered by the City of Heath. The JEDD originally contained 27 parcels but was amended twice. Construction of commercial and residential improvements is expected to occur over the next 15-20 years.

Pennsylvania 

Earned Income Tax (EIT) - effective April 13, 2026

We've resolved an issue where Pennsylvania Earned Income Tax (EIT) was withholding tax for employees marked as exempt (Is Exempted = true) on Employee Payroll Settings ~ TAXES when Primary work location is enabled on the EIT and wages were earned outside Pennsylvania. The courtesy withholding path now correctly obeys the ‘Is Exempted’ flag when the employee is exempt in this scenario   

Lewis Township, Williamsport Area School District – effective January 1, 2026     

The tax was updated:

• The municipal nonresident EIT has increased from 0% to 0.5%
• The total resident EIT remains 2%
• The municipal resident EIT rate remains 0.5%
• The school district resident EIT rate remains 1.5%

• The municipal low income exemption (LIE) remains $0
• The school district low income exemption (LIE) remains $0

South Carolina

Income Tax – effective January 1, 2026

• The tax brackets have been updated, and the highest rate has decreased from 6.2% to 6.0%
• The supplemental wage rate has decreased from 6.2% to 6.0%
• The value of an annual personal allowance has increased from $4,860 to $5,000
• The maximum standard deduction amount has increased from $7,300 to $7,500

Washington

Long-Term Care Insurance (LTI) – effective January 1, 2026

We've added functionality that allows employers to elect to pay a percentage of the employee’s Washington Long-Term Care Insurance (LTI) premium to align with agency requirements.

A new miscellaneous parameter, Employer Elected Percentage, has been added to the existing employee LTI tax. This parameter accepts values from 0 to 100 and determines the percentage of the total LTI premium paid by the employer.

A new employer tax returns the employer-paid portion. The employee-paid portion continues to be returned on the existing LTI tax.

NOTE: 

If Employer Elected Percentage is not set or is set to 0:

• The employee pays 100% of the LTI premium
• The employer LTI tax is not returned unless it is explicitly set up (in which case it returns $0 in this scenario)

If the employee LTI tax is marked exempt, both employee and employer LTI amounts return $0.

If the employer LTI tax is set up but marked exempt:

• The full LTI premium is returned on the employee tax
• The employer LTI tax returns $0

Release:    2026-4.51.0          

Update: May 25, 2026 - Updated June 2, 2026

Canada

Global Tax Settings – ACTION REQUIRED - Effective May 25, 2026

Several Canadian payroll tax settings that were moved to Employee Payroll Settings (PR203000) in 25R2 are now also available on the Global Tax Settings tab of the Tax Maintenance form (PR208000). This restores the ability to configure default tax values at a broader level — eliminating the need to set them on each employee record individually.

The following tax parameters are now available on the Global Tax Settings tab of Tax Maintenance (PR208000), in addition to Employee Payroll Settings (PR203000):

Federal (CAN) 

• Total Claim Amount 

• Approved shares of the Capital Stock of a LSVCC 

• Employment Code 

• Annual Deduction Amount 

• Compensation amounts are Pension Income 

• Deduction for living in a Prescribed Zone 

• Other Federal Tax Credits 

• Is a Non-resident of Canada 

• Additional Federal withholding amount 

All Provinces & Territories 

• Total Claim Amount 

• Approved shares of the capital stock of a LSVCC 

Applies to: AB, BC, MB, NB, NL, NS, NT, NU, ON, PE, QC, SK, YT 

ACTION REQUIRED:

Review the above tax settings for your employees. To support the availability of tax parameters on Tax Maintenance, the setting level has been reset to 'Global'. If you have employee-specific values, please change the setting level to 'Employee' and update the employee-specific values using the 'Configure Tax Settings' button in the summary area.

United States

Federal

Simple IRA – Effective May 25, 2026

A new optional flag — SIMPLE IRA with no employer contribution — is now available on SIMPLE IRA deduction setup. When selected, it overrides any other employer contribution amount configured for that deduction, setting it to zero.

Because this is an optional field, it will not affect any existing SIMPLE IRA deductions unless you actively choose to enable it.

Note: Consult your CPA or tax advisor before using this flag. According to IRS guidance, employers are generally required to make annual contributions to a SIMPLE IRA, either a matching contribution of up to 3% of compensation or a 2% nonelective contribution for each eligible employee.

California

SDI – Effective May 25, 2026

We resolved an issue in which the California State Disability Insurance (CA SDI) tax stopped calculating for employees whose earning codes were set to the All option (rather than Per Tax Engine). This affected payrolls processed on or after April 13, 2026.

Minnesota

Paid Family and Medical Leave (PFML) - effective May 25, 2026

Paid Family and Medical Leave now displays correctly in the MN DEED-1/D Government Report.

Oregon

Eugene, Oregon – Community Safety Payroll Tax (CSPT): Employee - Action Required - Effective May 25, 2026

Support has been added for the Eugene, Oregon, Community Safety Payroll Tax (CSPT) for employees. The Eugene CSPT is a local payroll tax of 0.44% applied to wages of employees working for an employer with a physical address within the Eugene city limits. The tax applies once an employee's annualized wages exceed $31,304.

Action required – Employee Exemptions:
If an employee lives in Eugene but does not work for an Eugene-based employer, they are NOT subject to this tax. Please ensure these employees are marked as exempt to avoid incorrect withholding.

NOTE: Employer CSPT – Not Supported:
The Employer portion of the Eugene Community Safety Payroll Tax is not currently supported because it is a payroll-exempt tax calculated and filed quarterly outside the standard payroll process. Employers should consult the City of Eugene's guidance for filing the employer CSPT independently.

Release:    2026-6.53.0          

Update: July 13, 2026

-Correction made on July 15, 2026: Corrected an issue when benefits using custom settings effected the same taxes.

What's Changing

The Canada Payroll Tax Engine API is transitioning from a SOAP-based interface to a RESTful API on our backend. This is a behind-the-scenes infrastructure update — tax rates, rules, and calculation outputs are unaffected.

What This Means for You

No action is required on your part. This is an internal infrastructure change on our end. Your existing integration will continue to work as-is — there is no change to tax calculation logic, results, or your day-to-day experience with the platform.

Support

If you experience any issues during this transition, please contact support or your VAR.

________________________________________________________________________________________________

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.