Costpoint Information Center

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State-Specific Updates

Use this section to view the details of state-specific regulatory updates.

State Tax Withholding - Blind/Age Exemption

Costpoint Payroll has been updated to support income tax withholding calculations for states that have an exemption amount for blindness or age. The Manage Employee Taxes screen and other applicable screens now provide new fields for holding employee's additional blindness or age exemptions claimed.

New records were added on the Manage State Tax Withholding Adjustments table for the state of Virginia’s exemption amounts.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.20 (July 12, 2021)
  • 8.0 (on-premise): MR 8.0.11 (June 28, 2021)

Alabama 2022 Standard Deductions/Dependent Exemptions

Alabama's withholding guide was updated to incorporate changes from a bill increasing the state's standard deductions, the state revenue department said May 2.

Costpoint will be updated to support the following new requirements with an effective date of 01/01/2022.

Release Dates

  • 8.0 (on-premise): MR 8.0.22 (June 2, 2022)
  • 8.1 (on-premise): MR 8.1.8 (May 26, 2022)

Alaska 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 Alaska SUTA taxable wage base limit of $47,100 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Alaska 2022 SUTA Wage Base

Costpoint has been updated to support the new Alaska SUTA taxable wage base limit of $45,200 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Alaska 2021 SUTA Wage Base

Costpoint has been updated to support the new Alaska SUTA taxable wage base limit of $43,600 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Alaska 2021 Geographic Codes

Costpoint has been updated to support Alaska’s new geographic codes. The Valdez-Cordova Census Area (code 75) was subdivided into the following two new codes:

  • Chugach (code 74)
  • Copper River (code 76)
The Valdez-Cordova Census Area (code 75) is no longer included in the list of geographic codes.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.17 (April 12, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.8 (March 22, 2021)
  • 8.0 (on-premise): MR 8.0.8 (Marc 29, 2021)

Arizona 2023 State Tax Withholding

Tax rates used on Arizona’s withholding certificate will decrease for 2023, and all taxpayers must complete a new Arizona Form A-4 for 2023.

State Requirements

For more information, refer to: https://azdor.gov/forms/withholding-forms/arizona-withholding-percentage-election

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Arizona 2023 SUTA Wage Base

Costpoint will be updated to support the new Arizona SUTA taxable wage base limit of $8,000 (from $7,000 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Arizona 2020 W-2 Electronic Filing

The Arizona Department of Revenue has updated their W-2 electronic reporting requirements with the following changes:

  • Beginning with the 2020 tax year (due January 31, 2021), all W-2s and 1099s must be submitted electronically.
  • In the RS-State Record, positions 298-307, provide the employer’s EIN as the State ID number; zero fill to the left.

State Requirements

Please see the following Arizona Department of Revenue site for additional information: https://azdor.gov/sites/default/files/media/PUBLICATION_701.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

Arkansas 2023 Supplemental Tax Rate

The Arkansas supplemental tax rate has been updated. The rate decreases from 4.9% to 4.7%.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.24 (September 18, 2023)

  • 8.2. (on-premise): MR 8.2.3 (September 5, 2023)

Arkansas 2023 State Tax Withholding

Arkansas’ withholding methods were updated by the state Department of Finance and Administration. The new withholding formula took effect June 1, 2023. The highest rate decreases to 4.7%, from 4.9%.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.23 (August 21, 2023)

  • 8.2. (on-premise): MR 8.2.2 (August 7, 2023)

Arkansas 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 Arkansas SUTA taxable wage base limit of $7,000 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Arkansas 2022 State Tax Withholding (Update #2)

Arkansas’ withholding methods were updated by the state Department of Finance and Administration on September 2, 2022 following an income tax cut passed in a legislative special session. The new withholding formula took effect October 1, 2022.

  • The highest tax rate used decreased to 4.9%, instead of 5.5%, and the tax brackets used were adjusted.

  • The formula’s standard deduction increased to $2,270, from $2,200, but the value of a state allowance was unchanged at $29.

  • The withholding instructions were updated to decrease the supplemental withholding rate to 4.9%, also effective October 1, 2022.

  • The standard deduction increases to $8,000, from $4,500, for single individuals, and to $16,000, from $9,000, for married individuals filing jointly.

  • The new withholding methods took effect October 1, 2022. The withholding formula was otherwise unchanged except for the increased standard deduction.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.27 (October 17, 2022)

  • 8.1 (on-premise): MR 8.1.13 (October 31, 2022)

Arkansas 2022 State Tax Withholding (Update #1)

The Arkansas Department of Finance and Administration updated their 2022 state tax withholding rules effective January 1, 2022. The following are the updates:

  • Compared to the 2021 formula, the highest tax rate used is 5.5%, instead of 5.9%, and the number of tax brackets used increased. The value of a state allowance remained $29 and the standard deduction remained $2,200 annually, the department said.
  • The supplemental withholding rate also decreased to 5.5%, from 5.9%, the department said in its withholding instructions effective Jan. 1, 2022.

State Requirements

For more information, refer to: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/withholdInstructions.pdf

Release Dates

  • 8.0 (on-premise): MR 8.0.20 (March 28, 2022)
  • 8.1 (on-premise): MR 8.1.6 (March 21, 2022)

Arkansas 2021 State W-2 Electronic Filing

The Arkansas Department of Finance and Administration updated their W-2 electronic filing requirements for 2021 reporting. The following two fields in the RS record are now required:

  • Supplemental Data Field 1 (Position number 338 - 412) of the Code RS record is required. This field should contain the FEIN of the company as reported in the Code RE Record. Report the number in the first nine places (left justify) and blank fill the rest (9 +66). Do not include hyphens in the FEIN number.
  • Supplemental Data Field 2 (Position number 413 - 487) of the Code RS record is required. This field should contain the eleven (11) digit State of Arkansas ID number (ex 12345678whw). Report the account ID in the first eleven places (left justify) and blank fill the rest (9 +66). Do not include hyphens in the ID number.

State Requirements

https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/Mag_Media2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

Arkansas 2021 SUTA Wage Base

Costpoint has been updated to support the new Arkansas SUTA taxable wage base limit of $10,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.4 (November 20, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

Arkansas 2021 State Tax Withholding

The Arkansas Department of Finance updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The threshold for adjusting the net taxable income at the $50 range (midrange of 100) increased to 88,001 (from 87,001).
  • The value of a state withholding allowance increased to $29, up from $26.
  • The tax rates used in the formula decreased to zero to 5.9%, down from zero to 6.6%, and the income tax brackets were adjusted.

State Requirements

For more information, refer to: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/whformula.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Arkansas 2021 Supplemental Tax Rate

Arkansas updated its 2021 Withholding Tax Employer’s Instructions and reduced the supplemental tax rate from 6.9% to 5.9%, effective January 1, 2021.

State Requirements

For more information, refer to: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/withholdInstructions.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.17 (April 12, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.9 (April 22, 2021)
  • 8.0 (on-premise): MR 8.0.8 (March 29, 2021)

California EEO-1 Pay Data Report

The California Pay Data Report generated by Costpoint’s Print EEO-1 Report application shall be updated with the following changes:

  • There will be two sections in the report — Payroll Employee Report and Labor Contractor Employee Report.

  • The following changes shall be applied to both Payroll Employee Report and Labor Contractor Employee Report:

    • Include Mean Hourly Rate and Median Hourly Rate.

    • Update the pay band thresholds.

    • The Row-Level Clarifying Remark if W-2 Box 1 total earnings will be used for at least one employee in the report shall be reworded to “W-2 Box 1 earnings data have been used for at least one employee.” (from “At least one employee uses W-2 Box 1 earnings.”)

  • The following Race/Ethnicity/Sex combinations shall be applied to the Labor Contractor Employee Report only:

    • U10 - Unknown Race/Ethnicity, Known Male

    • U20 - Unknown Race/Ethnicity, Known Female

    • U30 - Unknown Race/Ethnicity, Known Non-binary

    • UU - Unknown Race/Ethnicity, Unknown Sex

  • To identify the particular pay band to count the payroll employee, the earnings shown in W-2c will be used if there is a record, otherwise the earnings shown in W-2 will be used.

  • An information message regarding the snapshot period shall be added.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.24 (September 18, 2023)

  • 8.2. (on-premise): MR 8.2.3 (September 5, 2023)

California 2023 State Tax Withholding

California’s withholding methods were updated for 2023. The following are the updates:

  • The annual low income exemption threshold increases to $17,252 or $34,503, up from $15,916 or $31,831, depending on the employee’s filing status and, for married employees, the number of allowances claimed.

  • The annual standard deduction increases to $5,202 or $10,404, up from $4,803 or $9,606, depending on the employee’s filing status and, for married employees, the number of allowances claimed.

  • The value of a state allowance increases to $154 annually, up from $141.90.

  • The tax rates used in Method B continue to range from 1.1% to 14.63%. The tax brackets used are to be adjusted compared to 2022.

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

California 2021 Affordable Care Act (ACA) Electronic Reporting

California mandates that any employers filing 250 or more 1095-C returns must file electronically.

Costpoint has been updated to allow generation of an ACA electronic file in the format required by California.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)

  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)

  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

California 2022 FUTA Credit Reduction

The Federal Unemployment Insurance Tax Act (FUTA), Sections 3302(c)(2) and 3302(d)(3), provides that employers in states that have an outstanding balance of advances under Title XII of the Social Security Act at the beginning of January 1 of two or more consecutive years are subject to a reduction in credits otherwise available against the FUTA tax, if all advances are not repaid before November 10 of the taxable year. These credit reductions are made from the regular credit reduction of 5.4%. So, while employers in states without a further credit reduction will have a FUTA tax rate of .6% (on the first $7,000 of wages paid) for the year, employers in states with a further credit reduction due to an outstanding balance of advances will incur a FUTA tax rate of .6% + FUTA credit reduction.

According to the U.S. Department of Labor (DOL), California will have a credit reduction of 0.3% for 2022.

For further information, refer to: https://oui.doleta.gov/unemploy/futa_credit.asp

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

California 2022 State Tax Withholding

California updated their withholding schedules for Method B-Exact Calculation Method effective January 1, 2022. The following are the updates:

  • The annual standard deduction used in the Method B exact-calculation method and instructions will be either $4,803 or $9,606, up from $4,601 or $9,202, depending on the employee's filing status and, for married employees, the number of state allowances claimed.
  • The value of a state allowance increased to $141.90 annually, up from $136.40. The tax rates in Method B continue to range from 1.1% to 14.63%, and the tax brackets were adjusted compared to 2021.

State Requirements

For more information, refer to:

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

California 2021 Affordable Care Act (ACA) Electronic Reporting

California mandates that any employers filing 250 or more 1095-C returns must file electronically.

Costpoint has been updated to allow generation of an ACA electronic file in the format required by California.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

California 2021 State Tax Withholding

California updated their withholding schedules for Method B-Exact Calculation Method effective January 1, 2021. The following are the updates:

  • The annual standard deduction is $4,601, up from $4,537 in 2020.
  • The value of a state annual allowance increased to $136.40, up from $134.20 in 2020.
  • The low income exemption table has been updated for all filing statuses.
  • The withholding tax rate table has been updated for all filing statuses.

State Requirements

For more information, refer to:

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 16, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

California 2021 Pay Data Reporting

California employers of 100 or more employees must report pay and hours-worked data by establishment, job category, sex, race, and ethnicity to the Department of Fair Employment and Housing (DFEH) by March 31, 2021 and annually thereafter. This reporting is required under Government Code section 12999 enacted in SB 973.

A new California Pay Data option has been added to the Costpoint Print EEO-1 Report application to accommodate this requirement.

State Requirements

Important Information

The ability to link an employee to a non-binary gender has been added in a separate feature. Please see the following section for more information: Add New Non-Binary Gender Category.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.20 (July 12, 2021)
  • 8.0 (on-premise): MR 8.0.10 (June 4, 2021)

Colorado Paid Family and Medical Leave Insurance (FAMLI) Program Wage Reporting (Second Update)

Colorado updated their electronic file specifications to Version 1.16 where they have removed the seasonal field for employees. This Costpoint release updates the Create Quarterly Family and Medical Leave File application to support the state’s specifications up to Version 1.16.

Attention:

For more information, refer to: https://famli.colorado.gov/EMPLOYERS

Target Date

The following target date is subject to change:

  • 8.1 (on-premise): MR 8.1.19 (May 1, 2023)

Colorado Paid Family and Medical Leave Insurance (FAMLI) Program Wage Reporting

Colorado voters approved Proposition 118 in November of 2020, paving the way for a state-run Paid Family and Medical Leave Insurance (FAMLI) program. The FAMLI program is a social insurance program with both employers and employees contributing to the fund that will eventually pay out benefits. Costpoint has been updated to be compliant with version 1.15 of the Colorado Department of Labor and Employment’s My FAMLI+ EmployerWage Report File Formats.

State Requirements

For more information, refer to: https://famli.colorado.gov/EMPLOYERS

Release Date

  • 8.1 (on-premise): MR 8.1.18 (March 31, 2023)

Colorado 2023 State Tax Withholding

Colorado released 2023 versions of withholding formula and its optional withholding certificate were released.

The changes to the withholding formula included the lower tax rate and a clarification in the instructions that amounts of zero entered on Form DR 0004, Colorado Employee Withholding Certificate, must still be used in the formula. In the November elections, voters approved a proposition to reduce the state income tax rate to 4.4% from 4.55%. The standard amounts used in the formula increases if an employee either does not submit Form DR 0004 or leaves Line 2 of the form blank:

  • For employees with a federal filing status of married filing jointly or qualifying widow or widower, the standard amount increases from $8,000 to $9,000.

  • For all other filing statuses, the standard amount rises to from $4,000 to $4,500.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Colorado 2023 SUTA Wage Base

Costpoint will be updated to support the new Colorado SUTA taxable wage base limit of $20,400 with an effective date of 01/01/2023.

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Colorado - Add New Deduction Type for Paid Family and Medical Leave Insurance (FAMLI) Tracking

Colorado voters approved Proposition 118 in November 2020, paving the way for a state-run paid Family and Medical Leave Insurance (FAMLI) program. FAMLI supports both employees and businesses alike by protecting and supporting them when certain life events happen.

The FAMLI program is funded through premiums paid by both workers and employers (depending on how many employees the business has). In order to comply with the Colorado FAMLI requirements, a new Deduction type will be added, enabling you to indicate which deduction code(s) will be used to track employer and employee contributions for the Paid Leave Oregon program beginning January 1, 2023. Costpoint will be updated as follows:

  • Manage Deductions

    Deduction type COPFML (Colorado FAMLI) will be added to the Deduction Type lookup list.

  • Manage Employee Deductions

    A warning will display if the specified Deduction Code has a deduction type of COPFML but the employee’s SUTA State is not CO (Colorado) in the Manage Employee Taxes screen.

  • Manage Employee Contributions

    A warning will display if the specified Colorado Code has a deduction type of COPFML, but the employee’s SUTA State is not CO (Colorado) in the Manage Employee Taxes screen.

  • Create Quarterly SUTA Tax File

    Beginning Q1 2023, the following positions in the RS record will be populated:

    • State Quarterly PFMLI Total Wages (RS 341-351)

    • State Wide Transit Tax Subject Wages (RS 352-362)

    • State Wide Transit Tax (STT) (RS 363-373)

Important Note

Deltek recommends that Paid Family Medical Leave Insurance (FAMLI) be tracked using a Local Tax code, rather than a Deduction code, so that you’ll have the ability to exclude other deduction amounts, if necessary. A deduction code should only be used to track Family Medical Leave Insurance if your employees currently have no and will never have deductions that need to be excluded from the FAMLI wage base.

State Requirements

For more information, refer to: https://famli.colorado.gov/employers

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Colorado 2022 State Tax Withholding

The Colorado Department of Revenue updated their 2022 state tax withholding rules effective January 1, 2022. The following are the updates:

  • Colorado’s 2022 withholding formula incorporates the new optional state withholding certificate, Form DR 0004. If an employee does not complete the new Form DR 0004 certificate, then the employer will calculate Colorado withholding based on the employee’s IRS Form W-4. That calculation is designed to withhold the required Colorado income tax due on your wages throughout the year, and it will generally result in a refund when you file your Colorado income tax return.
  • The final version of Form DR 0004 was also released.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.20 (March 28, 2022)
  • 8.1 (on-premise): MR 8.1.6 (March 21, 2022)

Colorado 2022 SUTA Wage Base

Costpoint has been updated to support the new Colorado SUTA taxable wage base limit of $17,000 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

Colorado 2021 Q1 SUTA Electronic Filing

According to the latest Colorado Department of Labor and Employment Secure File Transfer Protocol Guide for Quarterly Wage Reports, dated January 2021, the format for the reporting quarter and year in the ICESA S record should provide the 4-digit year and the two digit quarter (01, 02, 03, or 04) in the format YYYYQQ. The S record reports this in positions 215-220.

State Requirements

Please see the following Colorado Department of Labor and Employment pdf for additional information: https://cdle.colorado.gov/sites/cdle/files/documents/WageFTPInstructions.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.16 (March 8, 2021)
  • 8.0 (on-premise): MR 8.0.7 (February 26, 2021)

Colorado 2020 State Tax Withholding (Retroactive to 01/01/2020)

The Colorado Department of Revenue updated their 2021 state tax withholding rules effective January 1, 2021. The following are the updates:

  • Colorado’s flat income tax rate, used for regular and supplemental wages, decreases to 4.55%, from 4.63%. (The decrease was approved by voters at the November 3, 2020 election, and is effective retroactive to January 1, 2020.)
  • All employers must calculate the required Colorado wage withholding using the formula (worksheet) and must be used with all Forms W-4. (Previously, Colorado allowed its 2019 percentage method, which included withholding allowances, to be used with Forms W-4 from 2019 or earlier.)

State Requirements

For more information, refer to: https://tax.colorado.gov/sites/tax/files/DR1098_12-2020.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.15 (February 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.7 (February 23, 2020)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Connecticut 2022 Q2 SUTA Electronic Filing

The Connecticut Department of Labor (CTDOL) will launch the new tax and benefit system, ReEmployCT, on July 5, 2022. The first quarter of the 2022 tax and wage return will be the last return filed in their current system. Beginning July 5, 2022, employers will file their second quarter 2022 returns and any outstanding returns for previous quarters in the ReEmployCT system. CTDOL has provided a new file format for Unemployment Wage and Tax Reporting. ReEmployCT will allow employers to securely login to the ReEmployCT system and directly upload their files for processing; they will no longer use the File Transfer Protocol (FTP).

ReEmployCT New Format Overview:

  • The new file must be a 276-character fixed length text file. It must have a .txt extension.
  • Each file that contains wages must contain one “S” record for each reportable employee followed by a “T” record for each employer.
  • If submitting a “zero wage tax report”, each file must contain a single “T” record for the employer. Do not submit any “S” records.
  • Zero wage tax reports can be included in the same file with employers reporting wages.
  • All numbers, including dollar amounts, may not contain decimals, commas, or dollar signs.
    • Example: $12,345.67 must appear as 1234567.
State Requirements

Release Dates

  • 8.0 (on-premise): MR 8.0.23 (June 27, 2022)
  • 8.1 (on-premise): MR 8.1.9 (June 21, 2022)

Connecticut 2022 FUTA Credit Reduction

The Federal Unemployment Insurance Tax Act (FUTA), Sections 3302(c)(2) and 3302(d)(3), provides that employers in states that have an outstanding balance of advances under Title XII of the Social Security Act at the beginning of January 1 of two or more consecutive years are subject to a reduction in credits otherwise available against the FUTA tax, if all advances are not repaid before November 10 of the taxable year. These credit reductions are made from the regular credit reduction of 5.4%. So, while employers in states without a further credit reduction will have a FUTA tax rate of .6% (on the first $7,000 of wages paid) for the year, employers in states with a further credit reduction due to an outstanding balance of advances will incur a FUTA tax rate of .6% + FUTA credit reduction.

According to the U.S. Department of Labor (DOL), Connecticut will have a credit reduction of 0.3% for 2022.

For further information, refer to: https://oui.doleta.gov/unemploy/futa_credit.asp

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Delaware 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 Delaware SUTA taxable wage base limit of $10,500 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.31 (February 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Delaware 2022 SUTA Wage Base

Costpoint has been updated to support the new Delaware SUTA taxable wage base limit of $14,500 (down from $16,500 in 2021) with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

Delaware 2020 W-2 Electronic Filing

Costpoint has been updated to support the following 2020 file format updates for Delaware W-2 electronic reporting:

  • EFW2 “RW” records should be included in W-2 submissions
  • Do not truncate the employee SSN on W-2 “Copy 1—For State, City, or Local Tax Department” or in the EFW2 “RS” record. All nine digits must be present.

State Requirements

For more information, refer to: https://revenue.delaware.gov/frequently-asked-questions/w-2-and-1099-form-faqs/

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

District of Columbia 2022 State Tax Withholding

The District of Columbia Office of Tax and Revenue implemented new personal income tax rates effective January 1, 2022. The new rates were enacted in the Fiscal Year 2023 Budget Support Emergency Amendment Act of 2022. Per the Office of Tax and Revenue, the new rates should be used for withholding despite no formal update to the district’s withholding methods.

The amendment increased tax rates for those earning more than $250,000 per year, up to a highest rate of 10.75%, instead of 8.95%.

State Requirements

For more information, refer to:

https://otr.cfo.dc.gov/release/district-columbia-tax-changes-take-effect-october-1-real-property-individual-income-and

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

District of Columbia 2021 Affordable Care Act Electronic Filing

The District of Columbia enacted legislation that requires all District residents to have minimal essential health care coverage, or have a coverage exemption or pay a tax penalty for tax years ending on or after December 31, 2019. See Individual Taxpayer Health Insurance Responsibility Requirement Amendment Act of 2018, effective October 30, 2018 (D.C. Law 22-168). Those requirements were codified in a new Chapter 51 to Title 47 of the D.C. Official Code.

Insurance companies, businesses providing insurance to their employees, and other applicable entities and third-party service providers that provide minimum essential coverage are required to file returns consistent with D.C. Official Code § 47-5105 as well as other information required by OTR.

All filers are required to file the Health Care Information Returns electronically even if they file less than 250 information returns via the OTR web portal, MyTax.DC.gov.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

District of Columbia 2022 Q1 SUTA Electronic Filing

According to the latest District of Columbia Department of Employment Services, the file requirements have been updated:

  • Employer ICESA Record Type A: Fields 208-275 have been updated
  • Employer ICESA Record Type E: Fields 149-158 have been updated
  • Employer ICESA Record Type S: Fields 135-275 have been updated

State Requirements

Please be advised that the Department of Employment Services (DOES) is scheduled to transition to their new tax system, the District of Columbia Employer Tax System (DCETS), in early 2022. However, they are still testing the new system and are not sure when they will require the new file requirements.

Please see the District of Columbia DCETS Wage File Format Specifications for additional information: https://essp.does.dc.gov/DCETSWageFileSpecs_121.pdf

Release Dates

(Work is in progress, but target dates are to be determined as the Department of Employment Services (DOES) has not implemented the new system requirements yet.)

  • 8.0 (on-premise): (To be determined)
  • 8.1 (on-premise): (To be determined)

Florida 2023 Q3 SUTA Electronic Filing

Florida now requires an amendment reason if an amended quarterly SUTA file is submitted. You will be able to select from the following list on the Create Quarterly SUTA Tax File screen:

  • 28 – Response to RTFL04A

  • 29 – Response to RTFL06A

  • 30 – Respone to RTFL13A

  • 31 – SSN Correction

  • 32 – Out of State Wages

  • 33 – Adding Wages

  • 34 – Decreasing Wages

  • 41 – Employee Name Change

  • 42 – Exempt - Cafeteria Plan

  • 43 – Exempt - Family Employee

  • 44 – Exempt - Student

  • 46 – Owner's Wages \

  • 47 – Modify Tips Reported

  • 48 – Modify Educational Wages 49 – Other

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.23 (August 21, 2023)

  • 8.2 (on-premise): MR 8.2.2 (August 7, 2022)

Florida 2023 Q2 SUTA Electronic Filing

Costpoint's Software ID for Reemployment Tax XML has been updated to HN3THwvdM4 as of March 13, 2023. The current Software ID, GYaUXnCCLz, will remain active for six months. The Create Quarterly SUTA Tax File screen was updated to support this change.

Target Dates

The following target dates are subject to change:

  • 8.0 (on-premise): MR 8.0.34 (May 9, 2023)

  • 8.1 (on-premise): MR 8.1.19 (May 1, 2023)

Florida 2022 Q4 SUTA Electronic Filing

The Florida Department of Revenue published a new reemployment tax XML specifications package, which provides enhancements including the ability to file reports with no employees. The following requirement to report at least one employee has been removed in XML schema v2022 1.0:

  • At least one employee must be reported. If there are no employees to report, enter “Jane Doe”, with a Social Security number of “999999999”.

Release Dates

  • 8.0 (on-premise): MR 8.0.27 (October 17, 2022)

  • 8.1 (on-premise): MR 8.1.13 (October 31, 2022)

Florida 2021 Q3 SUTA Electronic Filing

The Florida Department of Revenue provided a new production Software ID for Costpoint.

  • Current Software ID: E5jrxLXfPM
  • New Software ID: GYaUXnCCLz

Important

The current Software ID will remain active for four months so clients must have the update implemented by December 3, 2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.22 (September 13, 2021)
  • 8.0 (on-premise): MR 8.0.14 (September 29, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Georgia State 2022 Tax Withholding

The Georgia Department of Revenue has increased the standard deduction amounts effective January 1, 2022. The personal and dependent allowances used in the percentage method, as well as the percentage method tables themselves, were unchanged from the 2021 guide.

  • The standard deduction amount increases to $7,100 (from 6,000) for employees that are Married Filing Joint Return.
  • The standard deduction amount increases to $5,400 (from 4,600) for employees that are Single or Head of Household.
  • The standard deduction amount increases to $3,550 (from 3,300) for employees that are Married Filing Separate Return.

State Requirements

For more information, refer to: https://dor.georgia.gov/document/document/2022-employers-tax-guidepdf/download

Release Dates

  • 7.1.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Guam 2023 Tax Withholding

The Guam tax tables have been updated to reflect the 2023 U.S. federal tax tables.

Release Dates

  • 8.0 (on-premise): MR 8.0.31 (February 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Guam 2022 Tax Withholding

The Guam tax tables have been updated to reflect the 2022 U.S. federal tax tables.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (November 21, 2022)

Guam 2021 Tax Withholding

The Guam tax tables will be updated to reflect the 2021 U.S. federal updates.

State Requirements

For more information, refer to: https://www.irs.gov/pub/irs-pdf/p15t.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Guam 2020 Tax Withholding

The following changes were made to support Guam's 2020 tax table rules:

  • A check box has been added to the Manage State Taxes (PRMSTI) screen which will allow you to indicate whether or not the US territory's income tax calculations is the same as the federal income tax calculations.
  • New filing statuses have been added to indicate if withholding method will be based from the 2020 Form W-4.
  • Guam tax tables have been provided.
  • All applications which calculate Guam taxable wages and tax withholding have been updated to accommodate Guam's requirements.
  • Costpoint ESS now allows employees to provide their State W-4 data for Guam and any other territory that has the same income tax calculations as the federal income tax calculations.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.9 (September 8, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.2 (September 22, 2020)
  • 8.0 (on-premise): MR 8.0.1 (September 14, 2020)

Hawaii 2023 SUTA Wage Base

Costpoint has been updated to support the new Hawaii SUTA taxable wage base limit of $56,700 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Hawaii 2022 SUTA Wage Base

Costpoint has been updated to support the new Hawaii SUTA taxable wage base limit of $51,600 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Hawaii 2021 SUTA Wage Base

Costpoint has been updated to support the new Hawaii SUTA taxable wage base limit of $47,400 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 7, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Hawaii 2020 W-2 Electronic Filing

If you are an employer or payroll provider who is required by the federal government to electronically file Form W‐2, Wage and Tax Statements, or Form W‐2C during the year, you must also electronically transmit these informational returns to the Hawaii Department of Taxation. Costpoint has been updated to support the EFW2 file for Hawaii W-2 electronic reporting.

State Requirements

Please see the following State of Hawaii Department of Taxation site for additional information:

https://files.hawaii.gov/tax/eservices/ebiz/20pubef10-HI_EFW2SpecsGuide-v1rev102020.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Idaho 2023 State Tax Withholding

Idaho’s 2023 table for percentage computation method of withholding has been updated.

  • The percentage method flat rate is now 5.8%.

  • The 0% tax bracket’s upper threshold increased from $12,950 to $13,850 for single employees and heads of households and from $25,900 to $27,700 for married employees.

  • The value of Idaho Child Tax Credit Allowance increased from $3,417 to $3,534 annually.

Release Dates

  • 8.1 (on-premise): MR 8.1.22 (July 31, 2023)
  • 8.2 (on-premise): MR 8.2.2 (August 7, 2023)

Idaho 2023 SUTA Wage Base

Costpoint has been updated to support the new Idaho SUTA taxable wage base limit of $49,900 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Idaho 2022 State Tax Withholding

Idaho’s 2022 withholding methods were released by the state tax commission. The percentage method implements tax rate cuts in a bill (H.B. 436). The bill reduced the number of tax rates used to four instead of five and reduced the highest rate used to 6%, instead of 6.5%. Other updates include the following:

  • The zero-percent tax bracket’s upper threshold increased from $12,550 to $12,950 for single employees and heads of households and from $25,100 to $25,900 for married employees.
  • The value of Idaho Child Tax Credit Allowance increased from $3,154 to $3,417 annually.
  • The tax rate for supplemental payments decreased from 6.5% to 6%.

Release Dates

  • 8.0 (on-premise): MR 8.0.24 (July 12, 2022)
  • 8.1 (on-premise): MR 8.1.10 (July 25, 2022)

Idaho 2022 SUTA Wage Base

Costpoint has been updated to support the new Idaho SUTA taxable wage base limit of $46,500 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Idaho 2021 State Tax Withholding

On July 7, the Idaho state tax commission updated their withholding methods to include income tax rate and bracket changes:

  • Number of income tax brackets reduced to five, from seven
  • Tax rates have been set from zero to 6.5%, instead of from zero to 6.925%
  • Upper threshold of the zero-percent tax bracket increased to $12,550, from $12,400, for single employees
  • Upper threshold of the zero-percent tax bracket increased to $25,100, from $24,800, for married employees
  • Value of a state allowance increased to $3,154, from $2,960
  • Supplemental withholding rate decreased to 6.5%, from 6.925%

Release Dates

  • 7.1.1 (on-premise): MR 7.1.21 (August 16, 2021)
  • 8.0 (on-premise): MR 8.0.13 (August 30, 2021)

Idaho 2021 SUTA Wage Base

Costpoint has been updated to support the new Idaho SUTA taxable wage base limit of $43,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Idaho 2020 State Tax Withholding

Idaho's 2020 withholding methods, were released June 16 by the State Tax Commission. The highest tax bracket now starts at annual income of $48,320, up from $47,508, for married individuals, and at annual income of $24,160, up from $23,754, for other individuals. Costpoint has been updated to support these tax table changes.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.8 (July 31, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.2 (September 22, 2020)

Illinois 2023 State Withholding – Update #2

Illinois updated its withholding formula by reducing the value of a state allowance to its 2022 level. Public Act 103-0009 set the value of a state allowance at $2,425, instead of the 2023 value of $2,625.

An additional formula was added to correct withholding for existing employees for the remainder of 2023. The formula is the same as the standard formula but uses an allowance value of $2,225. Costpoint has been updated as follows:

  • Added 06/07/2023 record in Manage State Tax Withholding Adjustments by setting the amount per exemption to 2,425.00

  • Added special programming in Compute Payroll to use the allowance of 2,225 until 12/31/2023 for employees hired prior to 06/07/2023.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.23 (August 21, 2023)

  • 8.2 (on-premise): MR 8.2.2 (August 7, 2022)

Illinois 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 Illinois SUTA taxable wage base limit of $13,271 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.31 (February 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Illinois 2023 State Withholding - Update # 1

The Illinois Department of Revenue updated their Booklet IL-700-T effective 01/01/2023:

  • The value of a state allowance increases to $2,625, from $2,425.

  • The value of an additional allowance for age or blindness was unchanged at $1,000.

  • The state uses a 4.95% flat tax rate.

State Requirements

For more information, refer to the Illinois Withholding Tax Tables - Booklet IL-700-T.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Illinois 2022 FUTA Credit Reduction

The Federal Unemployment Insurance Tax Act (FUTA), Sections 3302(c)(2) and 3302(d)(3), provides that employers in states that have an outstanding balance of advances under Title XII of the Social Security Act at the beginning of January 1 of two or more consecutive years are subject to a reduction in credits otherwise available against the FUTA tax, if all advances are not repaid before November 10 of the taxable year. These credit reductions are made from the regular credit reduction of 5.4%. So, while employers in states without a further credit reduction will have a FUTA tax rate of .6% (on the first $7,000 of wages paid) for the year, employers in states with a further credit reduction due to an outstanding balance of advances will incur a FUTA tax rate of .6% + FUTA credit reduction.

According to the U.S. Department of Labor (DOL), Illinois will have a credit reduction of 0.3% for 2022.

For further information, refer to: https://oui.doleta.gov/unemploy/futa_credit.asp

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Illinois 2022 State Withholding

The Illinois Department of Revenue updated their withholding formula effective 01/01/2021:

  • Update the personal exemption to $2,425

State Requirements

https://www2.illinois.gov/rev/forms/withholding/Documents/currentyear/2022%20IL-700-T.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Illinois 2021 SUTA Wage Base

Costpoint has been updated to support the new Illinois SUTA taxable wage base limit of $12,960 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 7, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Illinois 2021 State Tax Withholding

The Illinois Department of Revenue updated their 2021 state tax withholding rules effective January 1, 2021. The value of a state withholding allowance in the withholding formula increased to $2,375, from $2,325 in 2020.

State Requirements

For more information, refer to: https://www2.illinois.gov/rev/forms/withholding/Documents/currentyear/il-700-t.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Indiana 2023 State Tax Withholding

Effective on or after January 1, 2023, the state income tax rate decreases from 3.23% to 3.15%.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Indiana W-2 Reporting Box 20 Format

The Indiana Department of Revenue issued an information bulletin that provides employers with the necessary information to correctly indicate Indiana adjusted gross income tax withheld and county income tax withheld on the state copy of Federal Form W-2, Wage, and Tax Statement.

All Indiana state and county income tax withheld by an employer must be designated in the appropriate boxes of the state copy of the W-2 form.

  • Box 15 – abbreviation IN

  • Box 16 – amount of wages subject to Indiana income tax

  • Box 17 – amount of Indiana income tax withheld

  • Box 18 – amount of wages subject to county income tax

  • Box 19 – amount of county income tax withheld

  • Box 20 – enter C and the adopting county code in box 20

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Indiana 2022 State Tax Withholding - Phase 2

Indiana's Departmental Notice No. 1 was updated to add a third deduction constant table for a new exemption for adopted children. The $3,000 annual exemption for adopted children was added in the legislation.

The Actual Number of Adopted Children field was recently added on the Manage Employee Taxes screen and in ESS, where you were instructed to specify the actual number of adopted children claimed by the employee on the Form WH-4. This value was not used with the first phase of the Indiana 2022 tax withholding updates. You were also instructed to temporarily include the number of adopted children for both state and local dependents in order for payroll to calculate the withholding tax, even when there was not yet an adopted children exemption type on the Manage State Tax Withholding Adjustments screen

You must now use the Reduce Employee Number of Dependents for Indiana toolkit to reduce the state's number of dependents, based on the number of adopted children.

Warning:

This maintenance release updates the Toolkit Status table for each company that has no employees in Indiana. You cannot run Compute Payroll until you have run the toolkit for any company that has employees in Indiana.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.23 (August 21, 2023)

  • 8.2 (on-premise): MR 8.2.2 (August 7, 2023)

Indiana 2022 State Tax Withholding – Phase 1

The state’s Departmental Notice No. 1 was updated to add a third deduction constant table for a new exemption for adopted children, the department said in a news release. The $3,000 annual exemption for adopted children was added in legislation (S.B. 2) signed Aug. 5 by Gov. Eric Holcomb (R). The other two deduction constant tables and the 3.23% income tax rate were unchanged.

Form WH-4, Employee’s Withholding Exemption and County Status Certificate, was also updated to include the adopted child exemption.

With this phase, Costpoint will be updated as follows:

  • Created tax tables with an effective date of 10/01/2022. The data is the same as the 01/01/2022 tables.

  • Updated tax documentation with new special setup instructions for Indiana employees.

    Manage Employee Taxes screen/Employee Payroll Setup Menu

    State Withholding Exemptions Enter the number of personal exemptions the employee is claiming on line 5 of his/her Form WH-4.
    State Withholding Dependents

    Enter the number of additional dependent exemptions the employee is claiming on line 6 of his/her Form WH-4.

    If the employee is claiming adopted child dependent exemptions on line 7 of his/her Form WH-4, multiply it by two and add the number to this field.

    For example, if employee has 3 additional dependent exemptions (Form WH-4 line 6) and 2 adopted child dependent exemptions (Form WH-4 line 7), enter 7 as the total number of exemptions for State Withholding Dependents.

    Note:

    The number of dependent exemptions for Indiana county tax (local) withholding must be the same as the number of dependent exemptions for Indiana state withholding.

    Local Taxes Dependents

    Enter the number of additional dependent exemptions the employee is claiming on line 6 of his/her Form WH-4.

    If the employee is claiming adopted child dependent exemptions on line 7 of his/her Form WH-4, multiply it by two and add the number to this field.

    For example, if employee has 3 additional dependent exemptions (Form WH-4 line 6) and 2 adopted child dependent exemptions (Form WH-4 line 7), enter 7 as the total number of exemptions for Local Taxes Dependents.

    Note:

    The number of dependent exemptions for Indiana county tax (local) withholding must be the same as the number of dependent exemptions for Indiana state withholding.

    Number of adopted children Use this field to specify the number of adopted children claimed by the employee on the Form WH-4. This value will not be used with the first phase of the Indiana 2022 tax withholding updates, but should still be entered as it will be used in the second phase. It is important that you provide this information if the State Withholding Number of Dependents and Local Withholding Number of Dependents includes exemptions for an adopted child or children.

Important Information

Phase 2 of the Indiana tax withholding updates will include the following updates:

  • Rather than expecting the Indiana state and local Number of Dependents to include the number of adopted children, Costpoint’s Compute Payroll application will be updated to use the Number of Adopted Children value when Indiana state and local tax withholding are calculated.

  • A new toolkit will be provided that will reduce the number of dependents based on the number of adopted children. For example, if employee has 3 additional dependent exemptions (Form WH-4 line 6) and 2 adopted child dependent exemptions (Form WH-4 line 7), with Phase 1, we instructed you to enter 7 as the total number of exemptions for Local Taxes Dependents (2 dependent exemptions plus 4 exemptions for the 2 adopted children). Because, in Phase 2, Compute Payroll will be updated to use the Number of Adopted Children value when computing for Indiana, the toolkit will reduce the number of dependents based on the number of adopted children. So, using the same example, the Number of Dependents will be updated from 7 to 2 (to remove the 4 exemption credits for the 2 adopted children).

State Requirements

For more information, refer to:

Phase 1 Release Dates

The following target dates are subject to change:

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Phase 2 Target Dates

  • To be determined.

Indiana 2021 State W-2 Electronic Filing

The Indiana Department of Revenue recently published an updated version of their W-2 and WH-3 Electronic Filing Requirement. This publication provides instructions and electronic filing specifications for filing electronic media with the Indiana Department of Revenue for State and County taxes withheld from Indiana residents. The most notable change to the most recent version of this publication is that Indiana does not use the RV record and it can be left out. Only the RS record is now unique to Indiana. The Code RS section found on page 6 has the only deviations Indiana requires from the Federal EFW2 specifications.

State Requirements

For more information, refer to: https://www.in.gov/dor/files/w2-wh3-guide.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

Iowa 2023 State Tax Withholding

Iowa’s 2023 withholding formula and instructions were released with the following updates:

  • For 2023 Iowa withholding calculations, federal withholding is no longer subtracted from taxable wages.

  • The amounts of the standard deduction (in Step 1), rates, and brackets (in Step 2) have been updated for 2023.

State Requirements

For more information, refer to the Iowa Department of Revenue Individual Income Tax Withholding Formula:

https://tax.iowa.gov/sites/default/files/2022-11/IAWithholdingFormulaAndInstructionsTY2023.pdf

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Iowa 2023 SUTA Wage Base

Costpoint will be updated to support the new Iowa SUTA taxable wage base limit of $36,100 (from $34,800 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Iowa 2022 State Tax Withholding

Iowa updated their withholding formula effective January 1, 2022. The following are the updates:

  • The tax rates used in the formula continue to range from 0.33% to 8.53%, but the tax brackets were adjusted compared to the 2021 formula.
  • Compared to the 2021 formula, the standard deductions used increased to $2,210 annually, from $2,130, when an employee claims zero or one state allowances, and to $5,450, from $5,240, when an employee claims at least two state allowances.
  • The value of a state allowance remained $40 annually.
State Requirements

For more information, refer to:

Iowa Withholding Formula For Wages Paid Beginning January 1, 2022 (abouttax.com).

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Iowa 2022 SUTA Wage Base

Costpoint has been updated to support the new Iowa SUTA taxable wage base limit of $34,800 with an effective date of 01/01/2022.

Target Dates

The following target dates are subject to change:

  • 7.1.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.15 (October 25, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Iowa 2021 State W-2 Electronic Filing

The Iowa Department of Revenue updated their W-2 electronic filing requirements for 2021 reporting:

  • BEN numbers are no longer required, but still can be listed.
  • The "State Employer Account Number" can either be the 9 or 12-digit Iowa Withholding Permit Number. The Department is moving away from the 12-digit permit number, so any new withholding permits issued out in GovConnectIowa will be 9-digits.

State Requirements

For more information, refer to:

https://tax.iowa.gov/electronic-reporting-wage-tax-statements-and-information-returns

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Iowa 2021 SUTA Wage Base

Costpoint has been updated to support the new Iowa SUTA taxable wage base limit of $32,400 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.10 (October 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

Iowa 2021 State Tax Withholding

The Iowa Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The annual tax bracket thresholds were adjusted.
  • The standard deduction increased to $2,130 a year, from $1,880, for employees who claim one or zero allowances, and to $5,240 a year, from $4,630, for employees who claim more than one allowance.

State Requirements

For more information, refer to:

https://tax.iowa.gov/sites/default/files/2020-11/IA%20Withholding%20Formula%20and%20Instructions%20TY2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

Kansas 2021 State Tax Withholding

The Kansas Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

State Requirements

For more information, refer to:

Release Dates

  • 7.1.1 (on-premise): MR 7.1.21 (August 16, 2021)
  • 8.0 (on-premise): MR 8.0.13 (August 30, 2021)

Kentucky 2023 SUTA Wage Base

Costpoint has been updated to support the new Kentucky SUTA taxable wage base limit of $11,100 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Kentucky 2023 State Tax Withholding

Costpoint will be updated to support the new Kentucky withholding tax formula updates.

  • The Kentucky standard deduction will be $2,980.

  • The Kentucky tax rate will be 4.5% of taxable income.

Target Dates

The following target dates are subject to change:

  • 8.0 (on-premise): MR. 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Kentucky 2022 SUTA Wage Base Update (Revision #2)

Kentucky lowered their SUTA taxable wage base limit to $10,800 (down from $11,100) with an effective date of 01/01/2022.

Release Dates

  • 8.0 (on-premise): MR 8.0.21 (April 25, 2022)
  • 8.1 (on-premise): MR 8.1.7 (April 20, 2022)

Kentucky 2022 SUTA Wage Base Update

Kentucky updated their SUTA taxable wage base limit to $11,100 (up from $10,800 in 2021) with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Kentucky 2022 State Tax Withholding

The Kentucky Department of Revenue updated their tax withholding formula effective 01/01/2022:

  • The standard deduction was updated to $2,770.

Target Dates

The following target dates are subject to change:

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Kentucky 2021 SUTA Wage Base Update #2

Kentucky’s unemployment-taxable wage base for 2021 was revised. Costpoint has been updated to support the new Kentucky SUTA taxable wage base limit of $10,800 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.18 (May 10, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.10 (May 21, 2021)
  • 8.0 (on-premise): MR 8.0.10 (June 4, 2021)

Kentucky 2021 SUTA Wage Base Update #1

Costpoint has been updated to support the new Kentucky SUTA taxable wage base limit of $11,100 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Kentucky 2021 State Tax Withholding

The Kentucky Department of Revenue updated their state tax withholding rules effective January 1, 2021. The standard deduction amount for Kentucky increased to $2,690 (from 2,650 in 2020).

State Requirements

Please see the following for additional information: https://revenue.ky.gov/Forms/2021%2042A003(TCF)(12-2020).pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Louisiana 2022 State Tax Withholding

The Louisiana Department of Revenue updated their state tax withholding rules effective January 1, 2022. The withholding formulas for the following statuses have been updated:

  • Single or Married Taxpayers Claiming 0 or 1 Personal Exemption
  • Married Taxpayers Claiming 2 Personal Exemptions

State Requirements

Please see the Louisiana Income Tax Withholding Tables for additional information:

https://revenue.louisiana.gov/LawsPolicies/Emergency%20Rule_LAC%2061.I.1501_Withholding%20Tables.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Maine 2023 State Tax Withholding

The Maine Department of Administrative and Financial Services updated their state tax withholding rules effective January 1, 2023. The following are the updates:

  • Compared to the 2022 withholding methods, the value of a state allowance in the 2023 withholding methods increased to $4,700, from $4,450.

  • The maximum standard deduction increased to $11,000, from $10,100, for single employees and to $24,850, from $23,050, for married employees.

  • The standard deduction decreased according to a formula for single employees who earn more than $91,500 annually, up from $85,850, or for married employees who earn more than $183,050 annually, up from $171,700.

  • The deduction reaches zero when a single employee earns at least $166,500 annually, up from $160,850, or when a married employee earns at least $333,050 annually, up from $321,700.

The tax brackets used in the percentage method were also adjusted.

State Requirements

For more information, refer to the 2023 Withholding Tables for Individual Income Tax.

Release Dates

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Maine 2022 State Tax Withholding

The Maine Department of Administrative and Financial Services updated their state tax withholding rules effective January 1, 2022. The following are the updates:

  • The amount of one withholding allowance increases to 4,450 (from 4,300 in 2021).
  • The standard deduction amounts have been updated.
  • The annual withholding tax tables for Married and Single have been updated.
State Requirements

Please see the Maine Revenue Services Withholding Tables for Individual Income Tax guide for additional information:

https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/22_wh_tab_instr.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

Maine 2021 State Tax Withholding

The Maine Department of Administrative and Financial Services updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The standard deduction amounts have been updated.
  • The annual withholding tax tables for Married and Single have been updated
State Requirements

Please see the Maine Revenue Services Withholding Tables for Individual Income Tax guide for additional information:

https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/21_wh_tab_instr_1.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

Maryland 2023 State Tax Withholding – New 2.75 Rate

Maryland’s 2023 withholding guide was released by the state comptroller’s office and contains a withholding percentage method for one additional local tax rate compared to 2022.

  • The minimum and maximum standard deduction increases to $1,700 and $2,550 annually, up from $1,600 and $2,400.

  • The value of a state allowance was unchanged at $3,200 annually.

  • A percentage method corresponding to a 2.75% local tax rate was added to the guide.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Maryland 2023 State Tax Withholding

Six Maryland counties made changes to their income tax rates for 2023, including two counties that introduced graduated rates.

  • Anne Arundel County

    Anne Arundel County introduced graduated tax brackets. Anne Arundel County, which used a tax rate of 2.81% in 2022, now uses that rate for taxable income of more than $50,000 in 2023 and uses a 2.7% rate for taxable income of up to $50,000.

    Note:

    There are no changes to Anne Arundel County withholding tables as both rates will still be using the 2.85% tables.

  • Frederick County

    Frederick County introduced graduated tax brackets. Frederick County used a tax rate of 2.96% in 2022. In 2023, a 2.75% rate applies when an employee earns up to $100,000 and has a filing status of married filing jointly, head of household, or qualifying widow/widower with dependent child, or when an employee earns up to $50,000 and has a filing status of single, married filing separately, or dependent. Otherwise, the rate of 2.96% applies.

    Note:

    Frederick County will now use the combination of 2.85% and 3.00% withholding tables.

  • Allegany County

    Allegany County decreased tax rates from 3.05% to 3.03%.

    Note:

    There are no changes to Allegany County as it will still be using the 3.05% withholding tables.

  • Cecil County

    Cecil County decreased tax rates from 3% to 2.8%.

    Note:

    Cecil County will now use the 2.85% withholding tables.

  • St. Mary’s County

    St. Mary’s County decreased tax rates from 3.1% to 3%.

    Note:

    St. Mary's County will now use the 3.00% withholding tables.

  • Washington County

    Washington County decreased tax rates from 3% to 2.95%.

    Note:

    There are no changes to Washington County as it will still be using the 3.00% withholding tables.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Maryland 2022 State Tax Withholding - Update Standard Deduction

The Maryland Treasury Department 2022 withholding guide was revised in late March 2022. The standard deduction, which is 15% of the employee’s gross income subject to a minimum and maximum, increased to a minimum of $1,600 and a maximum of $2,400, up from a range of $1,550 to $2,350, the state comptroller’s office said in the guide. The change is backdated with an effective date of January 2022.

State Requirements

Please see the Maryland Employer Withholding Guide for additional information.

Release Dates

  • 8.0 (on-premise): MR 8.0.21 (April 29, 2022)
  • 8.1 (on-premise): MR 8.1.8 (May 26, 2022)

Maryland 2022 State Tax Withholding

The Maryland Treasury Department updated their state tax withholding rules effective January 1, 2022.

  • Tax rates for Washington county changed from 3.20% to 3.00%.
  • Tax rates for Saint Mary's country changed from 3.17% to 3.10%.
  • All other counties remained the same.

State Requirements

Please see the Maryland Employer Withholding Guide for additional information:

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28. 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26. 2022)

Maryland 2021 State Tax Withholding

The Maryland Treasury Department updated their state tax withholding rules effective January 1, 2021. The maximum standard deduction used in the percentage methods increased to $2,350 annually, from $2,300.

State Requirements

Please see the Maryland Employer Withholding Guide for additional information:

https://marylandtaxes.gov/forms/20_forms/Withholding_Guide.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.16 (March 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.7 (February 2021)
  • 8.0 (on-premise): MR 8.0.7 (February 26, 2020)

Maryland Q3 2020 SUTA Electronic Filing Update

According to the Maryland Department of Labor, their new system, BEACON, will go live in late September 2020. This system allows employers to submit wage and employment reports online. Employers can submit wage reports using manual entry via the online screens or they can upload a file containing the wage information. The file types accepted by Maryland are:

  • Comma Separated Values (CSV) format
  • The Social Security format for filing W-2 electronically (EFW2)
  • The Interstate Conference of Employment Security Agencies (ICESA) format
  • Extensible Markup Language (XML) format

Costpoint was updated to support the EFW2 file format for Maryland SUTA electronic reporting.

State Requirements

Please see the following Maryland Department of Labor site for additional information:

http://www.dllr.maryland.gov/uim/employer/uimempfaqs.shtml

Release Dates

  • 7.1.1 (on-premise): MR 7.1.10 (October 8, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.2 (September 22, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

Michigan 2023 State Tax Withholding (Second Update)

The Michigan Department of Treasury updated their 2023 withholding guide with a lower flat tax rate. The tax rate for 2023 is 4.05%, instead of 4.25% with an effective date of 01/01/2023.

State Requirements

Please see the 2023 Michigan Income Tax Withholding Guide for additional information.

Release Dates

  • 8.0 (on-premise): MR 8.0.34 (May 9, 2023)

  • 8.1 (on-premise): MR 8.1.20 (May 30, 2023)

Michigan 2023 State Tax Withholding

The Michigan Department of Treasury increased their personal exemption amount to $5,400.00 with an effective date of 01/01/2023.

State Requirements

Please see the 2023 Michigan Income Tax Withholding Guide for additional information.

Release Dates

  • 8.0 (on-premise): MR 8.0.31 (February 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Michigan 2022 State Tax Withholding

The Michigan Department of Treasury increased their personal exemption amount to $5,000.00.

State Requirements

For more information, refer to:

https://www.michigan.gov/taxes/0%2c4676%2c7-238-43519_43531_75250-573278--%2c00.html

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Michigan 2021 State Tax Withholding

The Michigan Department of Treasury updated their state tax withholding rules effective January 1, 2021. The personal exemption amount increases to $4,900, from 4,750 in 2020.

State Requirements

For more information, refer to: https://www.michigan.gov/documents/taxes/446_711611_7.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Michigan 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 Michigan SUTA taxable wage base limit of $9,500 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.16 (March 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.8 (March 22, 2021)
  • 8.0 (on-premise): MR 8.0.8 (March 29, 2021)

Minnesota 2023 State Tax Withholding

The following are the tax updates for Minnesota effective January 1, 2023:

  • In the 2023 computer formula, the value of a state allowance increased from $4,450 to $4,800.

  • The formula’s tax brackets were also adjusted, and tax rates continue to range from 5.35% to 9.85%.

State Requirements

For more information, refer to the Minnesota Department of Revenue Withholding Computer Formula:

https://www.revenue.state.mn.us/sites/default/files/2022-11/wh_inst_23_0.pdf

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Minnesota 2023 SUTA Wage Base

Costpoint has been updated to support the new Minnesota SUTA taxable wage base limit of $40,000 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Minnesota 2022 State Tax Withholding

The Minnesota Department of Revenue updated their state tax withholding rules effective January 1, 2022. The following are the updates:

  • The value of a state allowance increased to $4,450, from $4,350.
  • The formula’s tax brackets were adjusted.
  • Tax rates continue to range from 5.35% to 9.85%.
  • The department also released a 2022 version of Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate.

State Requirements

For more information, refer to:

https://www.revenue.state.mn.us/sites/default/files/2021-12/wh_inst_22_0.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Minnesota 2022 SUTA Wage Base

Costpoint has been updated to support the new Minnesota SUTA taxable wage base limit of $38,000 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Minnesota 2021 SUTA Electronic Filing

Costpoint has been updated to support Minnesota's quarterly unemployment wage detail report in EFW2 format.

State Requirements

Please see the following Minnesota Unemployment Insurance (UI) Program site for additional information:

https://uimn.org/assets/MMREF-format-7-1-2005_tcm1068-192537.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.19 (June 14, 2021)
  • 8.0 (on-premise): MR 8.0.10 (June 4, 2021)

Minnesota 2021 State Tax Withholding

The Minnesota Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The amount of one withholding allowance increases to 4,350 (from 4,300 in 2020).
  • The withholding tables for Single and Married have been updated.

State Requirements

For more information, refer to: https://www.revenue.state.mn.us/sites/default/files/2021-01/wh_inst_21.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Mississippi 2023 State Tax Withholding

The Mississippi Department of Revenue updated their state tax withholding rules effective January 1, 2023.

  • The withholding formula uses the flat 5% income tax rate. In 2022, the formula used two brackets of 4% and 5%

  • Other parameters of the formula, including the standard deductions, were unchanged from 2022.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Mississippi 2022 State Tax Withholding

The Mississippi Department of Revenue updated their state tax withholding rules effective January 1, 2022.

  • Compared to the 2021 formula, the number of tax brackets decreased from four to three, with rates of zero, 4%, and 5%.
  • The standard deductions used in the formula were unchanged from 2021 and remain $2,300, $3,400, or $4,600, depending on filing status.

State Requirements

For more information, refer to this flowchart.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

Mississippi 2021 State Tax Withholding

The Mississippi Department of Revenue updated their state tax withholding rules effective January 1, 2021. The annual withholding percentage table has been updated.

State Requirements

For more information, refer to: https://www.dor.ms.gov/Documents/Computer%20Payroll%20Flowchart%209-9-20.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.15 (February 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Missouri 2023 State Tax Withholding

Missouri’s 2023 employer’s guide and withholding methods were released with the following updates:

  • The withholding formula uses tax rates of zero to 4.95%, instead of the previous range of 1.5% to 5.3%.

  • The standard deduction for employees who are married with nonworking spouses increased from $25,900 to $27,700.

  • The standard deduction for heads of households increases from $19,400 to $20,800.

  • The standard deduction for other filing statuses increases from $12,950 to $13,850.

  • The flat tax rate for supplemental payments decreases from 5.3% to 4.95%.

State Requirements

For more information, refer to the Missouri Department of Revenue’s Employer’s Tax Guide: https://dor.mo.gov/forms/4282_2023.pdf

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Missouri 2023 SUTA Wage Base

Costpoint will be updated to support the new Missouri SUTA taxable wage base limit of $10,500, (down from $11,000 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR. 8.1.14 (December 5, 2022)

Missouri 2022 State Tax Withholding

Missouri updated their employer tax guide effective January 1, 2022. The following are the updates:

  • Compared to the 2021 formula, the 2022 formula decreases the highest tax rate used to 5.3%, from 5.4%.
  • The supplemental tax rate decreased to 5.3%, from 5.4%. The tax brackets used in the formula were also adjusted.
  • The standard deductions increased to $12,950, from $12,550, for single employees and married employees whose spouse works or are filing separately. The deductions increased to $25,900, from $25,100, for married employees whose spouses do not work, and to $19,400, from $18,800, for heads of households.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Missouri 2021 SUTA Wage Base

Costpoint has been updated to support the new Missouri SUTA taxable wage base limit of $11,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.11 (October 29, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

Missouri 2021 State Tax Withholding

The Missouri Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The standard deduction amounts have increased.
  • The tax bracket thresholds used in the formula were adjusted.

State Requirements

Please see the following for additional information: https://dor.mo.gov/forms/4282_2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15. 2021)

Montana 2023 SUTA Wage Base

Costpoint has been updated to support the new Montana SUTA taxable wage base limit of $40,500 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Montana 2023 State Tax Withholding

Montana’s withholding methods were adjusted for inflation effective January 1, 2023, the state revenue department said in a new version of its withholding guide. The value of a state allowance in the withholding methods increased to $2,070 annually, up from $1,900. The tax brackets used in the withholding formula were also adjusted.

State Requirements

For more information, refer to:

https://mtrevenue.gov/publications/withholding-tax-guide-with-montana-withholding-tax-tables/

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Montana 2022 SUTA Wage Base

Costpoint has been updated to support the new Montana SUTA taxable wage base limit of $38,100 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.15 (October 25, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Montana 2021 SUTA Wage Base

Costpoint has been updated to support the new Montana SUTA taxable wage base limit of $35,300 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.11 (October 29, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

Nebraska 2023 State Tax Withholding

The Nebraska Department of Revenue issued the 2023 circular on Nebraska income tax withholding on wages, pensions, annuities, and gambling winnings paid on or after January 1, 2023, for corporate income and individual income tax purposes.

State Requirements

For more information, refer to: 2023 Nebraska Circular EN

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Nebraska 2021 Q4 SUTA Electronic Filing

The Nebraska Department of Labor updated the 512 Byte File Specification used for SUTA quarterly reporting. Data records RA, RT, and RF have been added to the 512 Byte Format, while records RE and RS have been updated. Previously, only RE and RS records were required in the 512 byte file.

State Requirements

Please see the following Nebraska Department of Labor's 512 Byte File Specification for additional information:

Release Dates
  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Nebraska 2022 State Tax Withholding

Nebraska’s withholding guide and methods were updated effective Jan. 1, 2022, the state revenue department said Oct. 28.The changes to the withholding methods in Circular EN include that the value of a state allowance increased to $2,080 annually, from $1,960. The tax brackets used in the percentage method were also adjusted, but the tax rates were unchanged and continue to range from 2.26% to 6.95%. Before the 2022 update, Nebraska’s withholding methods were most recently updated effective Jan. 1, 2017.

The following are the updates:

  • The annual withholding allowance increases to $2,080 (from 1,960).
  • The annual withholding tables for Single and Married have been updated.

State Requirements

For more information, refer to: 2022 Nebraska Circular EN

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Nebraska 2021 State W-2 Electronic Filing

The Nebraska Department of Revenue updated their W-2 electronic filing requirements for 2021 reporting:

  • Foreign State/Province, Foreign Postal Code, and Country Code have been added to the RS record.
State Requirements

For more information, refer to: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/info/8-633.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Nevada 2023 SUTA Wage Base

Costpoint will be updated to support the new Nevada SUTA taxable wage base limit $40,100 (from $36,600 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Nevada 2022 SUTA Wage Base

Costpoint has been updated to support the new Nevada SUTA taxable wage base limit of $36,600 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.15 (October 25, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Nevada 2021 SUTA Wage Base

Costpoint has been updated to support the new Nevada SUTA taxable wage base limit of $33,400 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.10 (October 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

New Jersey 2023 SUTA Wage Base

Costpoint will be updated to support the new New Jersey SUTA taxable wage base limit of $41,100 with an effective date of 01/01/2023.

Release Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

New Jersey 2022 SUTA Wage Base

Costpoint has been updated to support the 2022 New Jersey SUTA taxable wage base limit of $39,800 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

New Jersey 2020 State Tax Withholding

New legislation enacted September 29, 2020, made several changes to the New Jersey Gross Income Tax Act as part of New Jersey's Fiscal Year 2021 budget. The new law increases the Gross Income Tax rate for income between $1 million and $5 million and provides a new withholding rate for the remainder of 2020.

Effective January 1, 2020, the tax rate on that income bracket increases from 8.97% to 10.75%, regardless of filing status.

Effective immediately, employers must withhold Income Tax at the rate of 21.3% from salaries, wages and other remuneration in excess of $1 million, but not in excess of $5 million, during the taxable year. This higher withholding rate allows taxpayers affected by the rate increase to "catch up" on their withholdings for the year since the new tax rate is retroactive to January 1, 2020.

The Division of Taxation will not impose interest or penalties for insufficient payment of estimated tax and/or withholdings that may be due before September 29, 2020, if the underpayment is a result of the new tax rate.

The following rates published by New Jersey represented withholdings for a full tax year and do not reflect the "catch up" rate of 21.3%.

RATE A

Rate B

Rate C

Rate D

Rate E

Costpoint Solution

In order to comply with the mandated "catch-up" withholding, the New Jersey tax tables were updated with the 21.3% "catch-up" tax rate for annualized taxable wages between 1,000,000 and 5,000,000 from September 29, 2020 through December 31, 2020. Also, new tax tables with an Effective Date of January 1, 2021 were implemented to revert back to the 11.8% tax rate for those with annualized taxable wages greater than 1,000,000.

Important Information

If you do not download the Costpoint updates in MR 7.1.11, MR 8.0.3, or MR 7.1.7.4 by November 1, 2020, you will need to manually update your New Jersey tax tables as follows:

Effective September 29, 2020

On the Manage State Tax Tables screen, add new records for New Jersey with an effective date of 09/29/2020 to reflect the transitional withholding rate of 21.3% from September 29, 2020 to December 31, 2020.

State: NJ

Effective Date: 09/29/2020

Filing Status: RATE TABLE A

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.0000%
35,000.00 600.00 3.9000%
40,000.00 795.00 6.1000%
75,000.00 2,930.00 7.0000%
500,000.00 32,680.00 9.9000%
1,000,000.00 82,180.00 21.3000%
5,000,000.00 478,180.00 11.8000%

State: NJ

Effective Date: 09/29/2020

Filing Status: RATE TABLE B

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.0000%
50,000.00 900.00 2.7000%
70,000.00 1,440.00 3.9000%
80,000.00 1,830.00 6.1000%
150,000.00 6,100.00 7.0000%
500,000.00 30,600.00 9.9000%
1,000,000.00 80,100.00 21.3000%
5,000,000.00 476,100.00 11.8000%

State: NJ

Effective Date: 09/29/2020

Filing Status: RATE TABLE C

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.3000%
40,000.00 760.00 2.8000%
50,000.00 1,040.00 3.5000%
60,000.00 1,390.00 5.6000%
150,000.00 6,430.00 6.6000%
500,000.00 29,530.00 9.9000%
1,000,000.00 79,030.00 21.3000%
5,000,000.00 475,030.00 11.8000%

State: NJ

Effective Date: 09/29/2020

Filing Status: RATE TABLE D

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.7000%
40,000.00 840.00 3.4000%
50,000.00 1,180.00 4.3000%
60,000.00 1,610.00 5.6000%
150,000.00 6,650.00 6.5000%
500,000.00 29,400.00 9.9000%
1,000,000.00 78,900.00 21.3000%
5,000,000.00 474,900.00 11.8000%

State: NJ

Effective Date: 09/29/2020

Filing Status: RATE TABLE E

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.7000%
35,000.00 600.00 5.8000%
100,000.00 4,370.00 6.5000%
500,000.00 30,370.00 9.9000%
1,000,000.00 79,870.00 21.3000%
5,000,000.00 475,870.00 11.8000%

Effective January 1, 2021

On the Manage State Tax Tables screen, add new records for New Jersey with an effective date of 01/01/2021 to reflect the new withholding tables that do not include the transitional withholding rate of 21.3%.

State: NJ

Effective Date: 01/01/2021

Filing Status: RATE TABLE A

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.0000%
35,000.00 600.00 3.9000%
40,000.00 795.00 6.1000%
75,000.00 2,930.00 7.0000%
500,000.00 32,680.00 9.9000%
1,000,000.00 82,180.00 11.8000%

State: NJ

Effective Date: 01/01/2021

Filing Status: RATE TABLE B

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.0000%
50,000.00 900.00 2.7000%
70,000.00 1,440.00 3.9000%
80,000.00 1,830.00 6.1000%
150,000.00 6,100.00 7.0000%
500,000.00 30,600.00 9.9000%
1,000,000.00 80,100.00 11.8000%

State: NJ

Effective Date: 01/01/2021

Filing Status: RATE TABLE C

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.3000%
40,000.00 760.00 2.8000%
50,000.00 1,040.00 3.5000%
60,000.00 1,390.00 5.6000%
150,000.00 6,430.00 6.6000%
500,000.00 29,530.00 9.9000%
1,000,000.00 79,030.00 11.8000%

State: NJ

Effective Date: 01/01/2021

Filing Status: RATE TABLE D

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.7000%
40,000.00 840.00 3.4000%
50,000.00 1,180.00 4.3000%
60,000.00 1,610.00 5.6000%
150,000.00 6,650.00 6.5000%
500,000.00 29,400.00 9.9000%
1,000,000.00 79,030.00 11.3000%

State: NJ

Effective Date: 01/01/2021

Filing Status: RATE TABLE E

For Taxable Income Over Base Tax Percent of Excess
0.00 0.00 1.5000%
20,000.00 300.00 2.7000%
35,000.00 600.00 5.8000%
100,000.00 4,370.00 6.5000%
500,000.00 30,370.00 9.9000%
1,000,000.00 79,870.00 11.8000%

Release Dates

  • 7.1.1 (on-premise): MR 7.1.11 (October 29, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

New Jersey 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 New Jersey SUTA taxable wage base limit of $36,200 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.10 (October 8, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

New Jersey Q2 2020 SUTA Electronic Filing

According to the New Jersey Department of Labor and Workforce Development, all types of magnetic media have been phased out and replaced by the Employer Report of Wages Paid (WR-30) form. All employers must file their quarterly wage reporting information (Form WR-30) electronically either online via the New Jersey Payroll Taxes and Wage Withholding-Filing, Payment, and Reporting Service or by Secure File Transfer Protocol (SFTP). Costpoint was updated to support the generation of the WR-30 file in MR 7.1.8.

State Requirements

For more information, refer to:

https://www.nj.gov/labor/handbook/chap1/%20chap1sec2WageReporting.html

Release Dates

  • 7.1.1 (on-premise): MR 7.1.8 (July 31, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.2 (September 22, 2020)

New Mexico 2023 State Tax Withholding

New Mexico’s 2023 withholding methods were released by the state Taxation and Revenue Department.

  • The percentage method‘s tax brackets were adjusted.

  • The tax rates continued to range from 1.7% to 5.9%.

  • The supplemental tax rate also remained 5.9%

State Requirements

For more information, refer to the New Mexico Taxation and Revenue Department’s FYI-104:

https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2021/03/FYI-104.pdf

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

New Mexico 2023 SUTA Wage Base

Costpoint has been updated to support the New Mexico SUTA taxable wage base limit of $30,100 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

New Mexico 2022 State Tax Withholding

New Mexico updated their withholding tables effective January 1, 2022. The following are the updates:

State Requirements

For more information, refer to: FYI-104.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

New Mexico 2022 SUTA Wage Base

Costpoint has been updated to support the 2022 New Mexico SUTA taxable wage base limit of $28,700 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (Januar 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

New Mexico 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 New Mexico SUTA taxable wage base limit of $27,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

New Mexico 2021 State Tax Withholding

New Mexico updated their 2021 withholding rules as follows:

  • A new 5.9% income tax bracket has been added to the percentage method withholding.
  • The supplemental tax rate increased to 5.9% (from 4.9% in 2020).

State Requirements

For more information, refer to: FYI-104 2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

New York State and Yonkers, NY 2023 Tax Withholding

Withholding methods for New York state and the city of Yonkers, effective January 1, 2023, were released by the state’s Department of Taxation and Finance.

  • The amount of the adjustment for the difference between federal and New York state withholding allowances remained the same at $4,300, with the value of a state allowance at $1,000.

  • The state annual standard deduction remained unchanged from 2022, with a deduction of $7,400 for single employees and $7,950 for married employees.

  • The annual tax rate tables used in the exact calculation method (Method II) were adjusted.

  • The 2023 withholding methods retain a third method for high earners, which was first included in the 2022 version of the withholding methods.

  • The withholding and supplemental rates for 2023 have remained unchanged at 11.7% in New York and a supplemental rate for Yonkers residents of 1.95975%.

State Requirements

Please see the following for additional information:

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

New York 2023 SUTA Wage Base

Costpoint will be updated to support the New York SUTA taxable wage base limit of $12,300 with an effective date of 01/01/2023.

Release Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

New York 2022 FUTA Credit Reduction

The Federal Unemployment Insurance Tax Act (FUTA), Sections 3302(c)(2) and 3302(d)(3), provides that employers in states that have an outstanding balance of advances under Title XII of the Social Security Act at the beginning of January 1 of two or more consecutive years are subject to a reduction in credits otherwise available against the FUTA tax, if all advances are not repaid before November 10 of the taxable year. These credit reductions are made from the regular credit reduction of 5.4%. So, while employers in states without a further credit reduction will have a FUTA tax rate of .6% (on the first $7,000 of wages paid) for the year, employers in states with a further credit reduction due to an outstanding balance of advances will incur a FUTA tax rate of .6% + FUTA credit reduction.

According to the U.S. Department of Labor (DOL), New York will have a credit reduction of 0.3% for 2022.

For further information, refer to: https://oui.doleta.gov/unemploy/futa_credit.asp

Release Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

New York State 2022 Tax Withholding

The Withholding methods for New York State were updated to take into account changes in New York's fiscal 2022 budget. The following changes are effective for payrolls made on or after January 1, 2021.

  • A third withholding method, called the Top Income Tax Rates Method, has been added.
  • The annual withholding tax tables for Married and Single have been updated.
  • Supplemental withholding rate for New York state decreased to 11.70% (from 13.78% in the second half of 2021).
  • The taxable wage base in New York for 2022 will be $12,000, up $200 from the taxable wage base amount of $11,800 in 2021.

State Requirements

For more information, refer to: https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys_122.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

New York 2022 SUTA Wage Base

Costpoint has been updated to support the New York SUTA taxable wage base limit of $12,000 with an effective date of 01/01/2022.

Release Dates

  • 7.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

New York State 2021 Tax Withholding (Update #2)

The Withholding methods for New York State were updated to take into account changes in New York’s fiscal 2022 budget. The following changes are effective for payrolls made on or after January 1, 2021:

  • New income tax brackets for high-income individuals have been added
  • Supplemental withholding rate for New York State increased to 13.78%, from 9.62%

State Requirements

For more information, refer to: https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys_721.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.21 (August 16, 2021)
  • 8.0 (on-premise): MR 8.0.12 (July 26, 2021)

New York 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 New York SUTA taxable wage base limit of $11,800 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 8, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.4 (November 20, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

New York State and Yonkers, NY 2021 Tax Withholding (Update #1)

The 2021 New York State personal income tax rate schedules have been revised to reflect certain income tax rate reductions enacted under Chapter 60 of the Laws of 2016 (Part TT). The following are the updates:

  • The annual withholding tax tables for Married and Single have been updated.
  • The amount of the adjustment for the difference between federal and New York State withholding allowances increased to $3,300, from $3,200.

State Requirements

Please see the following for additional information:

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

North Carolina 2023 SUTA Wage Base

North Carolina updated their SUTA taxable wage base limit to $29,600 (up from $28,000 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

North Carolina 2023 State Tax Withholding

North Carolina’s flat tax rate is to decrease for 2023, the state revenue department said in its 2023 withholding methods.

  • The tax rate for 2023 is 4.75%, down from 4.99%, meaning the rate used for withholding is 4.85% in 2023, instead of 5.09%.

  • The state’s standard deductions were unchanged at $19,125 annually for heads of household and $12,750 annually for other filing statuses.

  • The value of a state allowance was unchanged at $2,500 annually.

State Requirements

For more information, refer to the North Carolina Department of Revenue’s 2023 Income Tax Withholding Tables and Instructions for Employers: https://www.ncdor.gov/media/13802/open

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

North Carolina 2022 SUTA Wage Base Update

North Carolina updated their SUTA taxable wage base limit to $28,000 (up from $26,000 in 2021) with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

North Carolina 2022 State Tax Withholding

The North Carolina Department of Revenue updated their tax withholding tables and instructions:

  • The withholding tax rate changed to 5.09%.
  • The standard deduction increased to $19,125.

State Requirements

For more information, refer to: 2022 Income Tax Withholding Tables and Instructions

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

North Carolina 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 North Carolina SUTA taxable wage base limit of $26,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

North Dakota 2023 State Tax Withholding

North Dakota updated their income tax withholding rates and instructions for wages paid in 2023.

  • The bottom tax bracket rate is now 0%.

  • The top four brackets are now combined into two brackets with reduced tax rates for taxable years beginning after 2022.

  • The annual allowance value used in the percentage method for Forms W-4 before 2020 was unchanged from 2022.

Release Dates

  • 8.1 (on-premise): MR 8.1.22 (July 31, 2023)

  • 8.2 (on-premise): MR 8.2.2 (August 7, 2023)

North Dakota 2023 State Tax Withholding

The North Dakota Department of Revenue updated their tax withholding tables and instructions:

  • The tax brackets in both formulas were adjusted, and the tax rates used continue to range from zero to 2.9%, with a supplemental tax rate of 1.84%.

State Requirements

For more information, refer to the 2023 North Dakota Income Tax Withholding Rates & Instructions.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

North Dakota 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 North Dakota SUTA taxable wage base limit of $40,800 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

North Dakota 2022 State Tax Withholding

The North Dakota Department of Revenue updated their tax withholding tables and instructions:

The tax brackets in both formulas were adjusted, and the tax rates used continue to range from zero to 2.9%, with a supplemental tax rate of 1.84%.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

North Dakota 2022 SUTA Wage Base

Costpoint has been updated to support the 2022 North Dakota SUTA taxable wage base limit of $38,400 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.26 (January 10, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

North Dakota 2021 SUTA Wage Base

Costpoint has been updated to support the 2021 North Dakota SUTA taxable wage base limit of $38,500 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

North Dakota 2021 State Tax Withholding

North Dakota released their 2021 state tax withholding requirements for 2021 and introduced the following changes:

  • The tax brackets used in the withholding method for Forms W-4 before 2020 have been adjusted.
  • The tax brackets used in the withholding method for Forms W-4 for 2020 and after have been adjusted.
State Requirements

Please see the following for additional information: https://www.nd.gov/tax/data/upfiles/media/income-tax-withholding-rates-and-instructions-booklet-2021.pdf%20

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Ohio Q4 2021 SUTA Electronic Filing

According to the Ohio Department of Job and Family Services, the ICESA file format has been updated for the new tax system, The SOURCE (State of Ohio Unemployment Resource for Claimants and Employers).

State Requirements

For more information, refer to the Ohio Employer's Guide to Electronic Quarterly Unemployment Insurance Tax Filing: http://www.odjfs.state.oh.us/forms/num/JFS%2007150/

Release Dates

  • 7.1.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.20 (March 28, 2022)
  • 8.1 (on-premise): MR 8.1.6 (March 21, 2022)

Ohio 2021 State Tax Withholding

On August 3, 2021, the Oregon Department of Taxation revised their withholding tables to incorporate lowered income tax rates. The new tables are effective September 1, 2021 and take into consideration the income tax rate reductions that went into effect when House Bill 110 (134th General Assembly) was signed into law on July 1, 2021.

State Requirements

For more information, refer to: Employee Withholding Taxes: Optional Computer Formula 2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.22 (September 13, 2021)
  • 8.0 (on-premise): MR 8.0.13 (August 30, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Oklahoma 2023 SUTA Wage Base

Costpoint has been updated to support the new Oklahoma SUTA taxable wage base limit of $25,700 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Oklahoma 2022 State Tax Withholding

Oklahoma’s 2022 withholding methods were released Oct. 28 by the state tax commission and implement income tax decreases included in a bill signed earlier in 2021. The tax rates used in the withholding methods decreased by 0.25 percentage points each and range from 0.25% to 4.75%, instead of the 0.5% to 5% range previously used. Compared to the 2021 withholding methods, the value of a state allowance was unchanged at $1,000 annually and the tax brackets used in the percentage method were unchanged. The updates implement H.B. 2962, which was signed May 21 by Gov. Kevin Stitt (R) and decreases individual income tax rates starting with 2022.

State Requirements

For more information, refer to: 2021 Oklahoma Income Tax Withholding Tables.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Oklahoma 2022 SUTA Wage Base

Costpoint has been updated to support the new Oklahoma SUTA taxable wage base limit of $24,800 with an effective date of 01/01/2022.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Oklahoma 2021 SUTA Wage Base

Costpoint has been updated to support the new Oklahoma SUTA taxable wage base limit of $24,000 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.11 (October 29, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

Oregon 2023 State Tax Withholding

The Oregon Department of Revenue (DOR) issued guidance on withholding tax formulas, effective January 1, 2023.

  • The federal tax adjustment amount increased to 7,800 (from 7,250 in 2022) for an employee with annual wages up to $50,000.

  • The federal tax adjustment phase out amounts for an employee with annual wages 50,000 or greater has changed in 2023.

  • The tax table has changed for an employee with annual wages up to $50,000.

  • The tax table has changed for an employee with annual wages $50,000 or higher.

  • The allowance amount increased to 236 (from 219 in 2022).

  • The standard deduction amount increased to 2,605 (from 2,420 in 2022) for an employee filing “Single” with fewer than 3 allowances.

  • The standard deduction amount increased to 5,210 (from 4,840 in 2022) for an employee filing “Single” with 3 or more allowances.

  • The standard deduction amount increased to 5,210 (from 4,840 in 2022) for an employee filing “Married”.

To use the formulas, you must figure a “base wage” (BASE) amount. The base is the employee’s wage minus the federal tax withheld minus standard deduction. The federal tax adjustment in the formula can’t be more than $7,800 per year in 2023. Once you figure the base, use the base in the formulas below to compute your Oregon withholding (WH).

State Requirements

For more information, refer to the Oregon Withholding Tax Formulas.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

Oregon 2023 SUTA Wage Base

Costpoint has been updated to support the 2023 Oregon SUTA taxable wage base limit of $50,900 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Oregon Q1 2023 SUTA Electronic Filing – Add New Deduction Type for Paid Leave Tracking

In order to comply with the latest Oregon quarterly SUTA reporting requirements, a new Deduction type will be added. This enables you to indicate which deduction code(s) will be used to track employer and employee contributions for the Paid Leave Oregon program beginning January 1, 2023. Costpoint will be updated as follows:

  • Manage Deductions: Deduction type ORPFML (Paid Leave Oregon) will be added to the Deduction Type lookup list.

  • Manage Employee Deductions: A warning will display if the specified Deduction Code has a deduction type of ORPFML, but the employee’s SUTA State is not OR (Oregon) on the Manage Employee Taxes screen.

  • Manage Employee Contributions: A warning will display if the specified Contribution Code has a deduction type of ORPFML, but the employee’s SUTA State is not OR (Oregon) on the Manage Employee Taxes screen.

  • Create Quarterly SUTA Tax File: Beginning Q1 2023, the following positions in the RS record will be populated:

    • State Quarterly PFMLI Total Wages (RS 341-351)

    • State Wide Transit Tax Subject Wages (RS 352-362)

    • State Wide Transit Tax (STT) (RS 363-373)

State Requirements

For more information, refer to:

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Oregon Q4 2022 SUTA Electronic Filing

According to the Oregon Employment Department, beginning with the third quarter filing in 2022, Frances Online will replace the Oregon Payroll Reporting System (OPRS) and the Employer Account Access (EAA) portal. The new system will support combined payroll reporting; including Unemployment Insurance Tax, Workers’ Benefit Fund (WBF), State Withholding Tax, Lane and TriMet Transit Taxes, and beginning in the first quarter of 2023, Statewide Transit Tax (STT), and Paid Family and Medical Leave Insurance (PFMLI) Contributions.

With these changes, OED has developed a new schema to reflect the updates in the file upload to include the new PFMLI program and STT. Please note, the new program columns will not take effect until the programs are available in Frances beginning first quarter 2023.

State Requirements

For more information, refer to:

Release Dates
  • 8.0 (on-premise): MR 8.0.26 (September 12, 2022)
  • 8.1 (on-premise): MR 8.1.11 (September 2, 2022)

Oregon 2022 State Tax Withholding

The Oregon Department of Revenue announced the following updates to their state tax withholding rules effective January 1, 2022:

  • Oregon's 2022 withholding formulas increase the value of several formula parameters.
  • The state standard deductions increased to $4,840 for married employees and for single employees who claim at least three allowances, and to $2,420 annually for other single employees, from $4,700 and $2,350, respectively.

State Requirements

For more information, refer to: Oregon Withholding Tax Formulas 2021.pdf .

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Oregon 2022 SUTA Wage Base

Costpoint has been updated to support the new Oregon SUTA taxable wage base limit of $47,700 with an effective date of 01/01/2022.

Release Dates

  • 7.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Oregon 2021 SUTA Wage Base

Costpoint has been updated to support the new Oregon SUTA taxable wage base limit of $43,800 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

Oregon 2021 State Tax Withholding

The Oregon Department of Revenue announced the following updates to their 2021 state tax withholding rules:

  • The federal tax adjustment amount increased to 7,050 (from 6,950 in 2020) for an employee with annual wages up to $50,000.
  • The federal tax adjustment phase out amounts for an employee with annual wages 50,000 or greater changed in 2020.
  • The tax table changed for an employee with annual wages up to $50,000.
  • The tax table changed for an employee with annual wages $50,000 or greater.
  • The allowance amount increased to 213 (from 210 in 2020).
  • The standard deduction amount increased to 2,350 (from 2,315 in 2020) for an employee filing “Single” with fewer than 3 allowances.
  • The standard deduction amount increased to 4,700 (from 4,630 in 2020) for an employee filing “Single” with 3 or more allowances.
  • The standard deduction amount increased to 4,700 (from 4,630 in 2020) for an employee filing “Married”.

State Requirements

For more information, refer to: Oregon Withholding Tax Formulas 2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Puerto Rico Q4 2020 SUTA Electronic Filing

Costpoint was updated to support electronic filing for Puerto Rico SUTA reporting, using the following format:

State Requirements

Please see the following Department of Labor and Human Resources of Puerto Rico site for additional information:

https://patronos.trabajo.pr.gov/patronos/Help/Help_EN/default.htm?turl=aboutus.htm

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

Rhode Island 2023 State Tax Withholding

Rhode Island’s 2023 withholding methods were released by the state taxation division.

  • Tax rates used in the withholding methods continue to range from 3.75% to 5.99%, and the brackets used in the percentage method were adjusted.

  • The value of a state allowance remained $1,000 annually.

  • The annual wage threshold above which the value of a state allowance is zero increased to $260,550, up from $241,850.

State Requirements

For more information, refer to the Rhode Island Employer’s Income Tax Withholding guide: 2023 Rhode Island Employer's Income Tax Withholding Tables

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Rhode Island 2023 SUTA Wage Base

Costpoint has been updated to support the new Rhode Island SUTA taxable wage base limit of $28,200 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Rhode Island 2022 State Tax Withholding

The Rhode Island State Tax Division released their 2022 withholding methods and state withholding certificate.

  • The value of a state allowance used in the withholding methods remained $1,000 annually. However, the income threshold above which the value of an allowance is zero increased to $241,850 annually, up from $234,750.
  • The tax brackets used in the percentage method were adjusted, but the tax rates used continue to range from 3.75% to 5.99%.
  • The employer’s withholding guide also included the 2022 version of Form RI W-4, Employee’s Withholding Allowance Certificate, which was unchanged from 2021 except to update to the income threshold above which the value of an allowance is zero.

State Requirements

Please see the Rhode Island Withholding Tax Tables Booklet (2022) for additional information.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Rhode Island 2021 SUTA Wage Base

Costpoint has been updated to support the new Rhode Island SUTA taxable wage base limit of $24,600 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Rhode Island 2021 State Tax Withholding

The Rhode Island Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The withholding tables have been updated, effective 01/01/2021.
  • The threshold for 0.00 allowance amount increases to $234,750 (from $231,500 in 2020).

State Requirements

For more information, refer to: 2021 Rhode Island Employer's Income Tax Withholding Tables

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

South Carolina 2023 State Tax Withholding

The South Carolina Department of Revenue updated their state tax withholding rules effective January 1, 2023. The following are the updates:

  • The number of tax brackets used in the formula decreased to three, with rates of zero, 3%, and 6.5%, instead of the previous six, with rates ranging from 0.2% to 7%.

  • The value of a state allowance increased to $4,310, up from $2,750, and the maximum standard deduction increased to $6,475, up from $4,580.

  • The state also released the 2023 Form SC W-4, South Carolina Employee’s Withholding Allowance Certificate.

State Requirements

For more information, refer to:

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

South Carolina 2022 State Tax Withholding

The South Carolina Department of Revenue updated their state tax withholding rules effective January 1, 2022. The following are the updates:

  • The standard deduction maximum amount for one or more exemption increases to 4,580 (from 4,200).
  • The personal exemption amount for one increases to 2,750 (from 2,670).
  • The annual percentage table has been updated.
State Requirements

For more information, refer to: https://dor.sc.gov/forms-site/Forms/WH1603F_2022.pdf

Release Dates

  • 7.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

South Carolina 2021 State Tax Withholding

The South Carolina Department of Revenue updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • Reduce the lowest tax rate used from 0.8% in 2020 to 0.5% in 2021.
  • Increase the value of a state allowance from $2,590 in 2020 to $2,670 in 2021.
  • Increase the maximum state standard deduction from $3,820 in 2020 to $4,200 in 2021.
  • Adjust the income brackets.

State Requirements

For more information, refer to: https://dor.sc.gov/forms-site/Forms/WH1603F_2021.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.5 (December 23, 2020)
  • 8.0 (on-premise): MR 8.0.4 (December 11, 2020)

Texas Q2 2020 SUTA Electronic Filing

The Texas Workforce Commission has updated their SUTA wage reporting requirements. The following fields in the ICESA file which were previously populated will now be blank:

  • Record A 220: Allocation List Indicator
  • Record A 221-229: Service Agent ID
  • Record A 230-242: Total Remittance Amount
  • Record B 15-22: Computer
  • Record B 23-24: Internal Label
  • Record B 26-27: Density
  • Record B 28-30: Recording Code (EBCDIC or ASCII Character Set)
  • Record B 31-32: Number of Tracks
  • Record B 33-34: Blocking Factor
  • Record B 147-190: Organization Name
  • Record B 191-225: Street Address
  • Record B 226-245: City
  • Record B 246-247: State
  • Record B 253-257: Zip Code
  • Record B 258-262: Zip Code Extension
  • Record T 186-198: Allocation Amount

Manage SUTA Tax File Data

The following new field was added to this screen:

Field Descritpion
NAICS Code Enter the 6-digit North American Industry Classification System code that best classifies your company.

Create Quarterly SUTA Tax File (PRPSMM)

The Create Quarterly SUTA Tax File screen was updated to generate a SUTA tax file for Texas in the updated ICESA file format required by the state.

This release will also applied the following changes for Texas:

  • The values in the following fields will also be updated:
    • Record E Position 182 - 187 NAICS Code field now reports the value entered in NAICS Code field on the Manage SUTA Tax File Data screen.
    • Record T Position 248 - 250 County Code field now reports the value entered in the Industry/County Code/Location Code/Branch field on the Manage SUTA Tax File Data screen.
    • Record T Position 251 - 257 Outside County Employees now reports the value entered in the Remitter Number/Employees Outside County field on the Manage SUTA Tax File Data screen.
  • The application will no longer display the message: "Warning: This file should be named 'TWCWAGES' before submitting to the government agency. Continue?"
  • The application will provide validations on fields that are related to the Configure Company information screen.
  • The Computer Manufacturer field is now disabled for the State of Texas.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.8 (July 31, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.2 (September 22, 2020)

U.S. Virgin Islands 2023 Tax Withholding

The U.S. Virgin Islands tax tables have been updated to reflect the 2023 U.S. federal tax tables.

Release Dates

  • 8.0 (on-premise): MR 8.0.31 (February 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

U.S. Virgin Islands 2023 SUTA Wage Base

North Carolina updated their SUTA taxable wage base limit to $30,200 (down from $30,800 in 2022) with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

U.S. Virgin Islands 2022 FUTA Credit Reduction

The Federal Unemployment Insurance Tax Act (FUTA), Sections 3302(c)(2) and 3302(d)(3), provides that employers in states that have an outstanding balance of advances under Title XII of the Social Security Act at the beginning of January 1 of two or more consecutive years are subject to a reduction in credits otherwise available against the FUTA tax, if all advances are not repaid before November 10 of the taxable year. These credit reductions are made from the regular credit reduction of 5.4%. So, while employers in states without a further credit reduction will have a FUTA tax rate of .6% (on the first $7,000 of wages paid) for the year, employers in states with a further credit reduction due to an outstanding balance of advances will incur a FUTA tax rate of .6% + FUTA credit reduction.

According to the U.S. Department of Labor (DOL), the U.S. Virgin Islands will have a credit reduction of 3.6% for 2022.

For more information, refer to: https://oui.doleta.gov/unemploy/futa_credit.asp

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

U.S. Virgin Islands 2022 Tax Withholding

The U.S. Virgin Islands tax tables have been updated to reflect the 2022 U.S. federal tax tables.

Release Dates

  • 7.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

U.S. Virgin Islands 2022 SUTA Wage Base

The U.S. Virgin Islands decreased their SUTA taxable wage base limit from $32,500 in 2021 to $30,800 in 2022.

Release Dates

  • 7.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

U.S. Virgin Islands 2021 FUTA Credit Reduction

According to the U.S. Department of Labor (DOL), the U.S. Virgin Islands could not pay its federal loans by the November 10, 2021 deadline and will lose the full Federal Unemployment Tax Act (FUTA) credit for 2021. It will have a credit reduction of 3.3% for 2021.

State Requirements

For more information, refer to Schedule A (Form 940)

Release Dates

  • 7.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2022)

U.S. Virgin Islands 2020 FUTA Credit Reduction

For 2020, the U.S. Virgin Islands (USVI) is the only credit reduction state. The credit reduction rate is 0.03 (3.0%).

State Requirements

For more information, refer to: Schedule A (Form 940)

Release Dates

  • 7.1.1 (on-premise): MR 7.1.13 (January 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 7, 2021)
  • 8.0 (on-premise): MR 8.0.5 (January 15, 2021)

U.S. Virgin Islands 2021 SUTA Wage Base

The U.S. Virgin Islands increased their SUTA taxable wage base limit from 28,900 in 2020 to 32,500 in 2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.15 (February 8, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.7 (February 23, 2021)
  • 8.0 (on-premise): MR 8.0.7 (February 26, 2021)

U.S. Virgin Islands 2021 Tax Withholding

The Virgin Islands tax tables have been updated to reflect the 2021 U.S. federal updates.

State Requirements

For more information, refer to: Publication 15-T

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Utah 2023 State Tax Withholding

Utah’s withholding guide was updated April 11 by the state tax commission, with the changes taking effect June 1, following a decrease to the state’s income tax rate.

  • The tax rate was decreased to 4.65%, from 4.85%

  • The base allowance used in the formulas was increased to $415 for single employees or $830 for married employees, up from $390 or $780.

  • The amounts subtracted from wages in the formulas increased to $8,371 for single employees or $16,742 for married employees, up from $7,774 or $15,548.

Release Date

  • 8.1 (on-premise): MR 8.1.20 (May 30, 2023)

Utah 2023 SUTA Wage Base

Costpoint has been updated to support the new Utah SUTA taxable wage base limit of $44,800 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Utah 2022 State Tax Withholding

The Utah State Tax Commission updated their income tax withholding instructions effective May 1, 2022.

  • The tax rate is 4.85%, down from 4.95%.
  • The base allowances, which are $390 and $780 annually for single or married employees, respectively, up from $360 and $720.
  • The amounts subtracted from wages in the formulas’ Line 4 to determine how much the allowances are reduced by increased to $7,774 and $15,548 annually for single or married employees, respectively, up from $7,128 and $14,256.

State Requirements

Please seeUtah's 2022 Withholding Tax Guide for additional information.

Release Dates

  • 8.0 (on-premise): MR 8.0.21 (April 29, 2022)
  • 8.1 (on-premise): MR 8.1.8 (May 26, 2022)

Utah 2022 SUTA Wage Base

Costpoint has been updated to support the new Idaho SUTA taxable wage base limit of $41,600 with an effective date of 01/01/2022.

Release Dates

  • 7.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2022)

Utah 2021 SUTA Wage Base

Costpoint has been updated to support the new Utah SUTA taxable wage base limit of $38,900 with an effective date of 01/01/2021.

Release Dates

  • 7.1 (on-premise): MR 7.1.25 (December 15, 2021)
  • 8.0 (on-premise): MR 8.0.17 (January 4, 2022)
  • 8.1 (on-premise): MR 8.1.3 (December 21, 2021)

Vermont 2023 State Tax Withholding

Vermont’s 2023 withholding methods were released by the state tax department.

  • The value of a state allowance in the withholding methods increased to $4,850 annually, from $4,500.

  • The tax brackets used in the percentage method were adjusted.

  • Tax rates used in the percentage method continue to range from zero to 8.75%.

State Requirements

Please see the Vermont 2023 Income Tax Withholding Instructions, Tables, and Charts guide for additional information.

Release Dates

  • 8.0 (on-premise): MR 8.0.30 (January 23, 2023)

  • 8.1 (on-premise): MR 8.1.16 (January 16, 2023)

Vermont 2023 SUTA Wage Base

Costpoint will be updated to support the new Vermont SUTA taxable wage base limit to $13,500 (from $15,500 in 2022) with an effective date of 01/01/2023.

Release Dates

The following target dates are subject to change:

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Vermont 2022 State Tax Withholding

The Vermont Department of Taxes updated their income tax withholding instructions effective January 1, 2022.

  • Vermont's 2022 withholding methods adjust the income tax brackets used
  • The value of a state allowance increased to $4,500 annually (from $4,400 in 2021)

State Requirements

Please see the Vermont 2022 Income Tax Withholding Instructions, Tables, and Charts guide for additional information.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Vermont 2022 SUTA Wage Base

Costpoint has been updated to support the new Vermont SUTA taxable wage base limit of $15,500 with an effective date of 01/01/2022.

State Requirements

For more information, refer to: Unemployment Tax Rates

Release Dates

  • 7.1 (on-premise): MR 7.1.27 (January 21, 2022)
  • 8.0 (on-premise): MR 8.0.18 (January 17, 2022)
  • 8.1 (on-premise): MR 8.1.4 (January 26, 2022)

Vermont 2021 SUTA Wage Base

Costpoint has been updated to support the new Vermont SUTA taxable wage base limit of $14,100 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.12 (December 4, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.4 (November 20, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)

Vermont 2021 State Tax Withholding

The Vermont Department of Taxes updated their state tax withholding rules effective January 1, 2021. The following are the updates:

  • The annual percentage method withholding tables for Married and Single have been updated.
  • The value of a withholding allowance increased to $4,400 annually, up from $4,350 in 2020.
State Requirements

For more information, refer to: https://tax.vermont.gov/sites/tax/files/documents/WithholdingInstructions.pdf

Release Dates

  • 7.1.1 (on-premise): MR 7.1.14 (January 18, 2021)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.6 (January 27, 2021)
  • 8.0 (on-premise): MR 8.0.6 (January 22, 2021)

Virginia 2022 State Tax Withholding

Virginia’s withholding methods were updated effective October 1, 2022 to implement an increased standard deduction, the state tax department said September 22, 2022.

  • The standard deduction increases to $8,000, from $4,500, for single individuals, and to $16,000, from $9,000, for married individuals filing jointly.

  • The new withholding methods took effect October 1, 2022. The withholding formula was otherwise unchanged except for the increased standard deduction.

State Requirements

For more information, refer to the Income Tax Withholding Guide for Employers.

Release Dates

  • 8.0 (on-premise): MR 8.0.27 (October 17, 2022)

  • 8.1 (on-premise): MR 8.1.13 (October 31, 2022)

Virginia - Blind/Age Exemption

Costpoint Payroll has been updated to support Virginia’s age and blindness exemption amounts.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.20 (July 12, 2021)
  • 8.0 (on-premise): MR 8.0.11 (June 28, 2021)

Washington WA Cares Reporting

The WA Cares Fund is a new program that gives working Washingtonians access to long-term care coverage when they need it. Workers contribute 0.58% of each paycheck during their working years to be able to access a $36,500 lifetime benefit (adjusted annually for inflation) that can help pay for long-term care services when needed. Workers begin contributing to WA Cares on July 1, 2023 and benefits become available July 1, 2026. In order to use your benefit, you must meet a contribution requirement as well as a care need requirement.

Costpoint’s Create Quarterly Family and Medical Leave File application will be updated as follows:

  • Washington shall be added to the State drop-down list.

  • A wage report titled “Washington Paid Family & Medical Leave & WA Cares Report” shall be added.

  • A wage file in CSV format shall be generated for Washington.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.24 (September 18, 2023)

  • 8.2 (on-premise): MR 8.2.4 (October 2, 2023)

Washington WA Cares Exemption Tracking

A new checkbox titled WA Cares Fund Exemption has been added in the Manage Employee Taxes screen, allowing you to track employees with an approved WA Cares exemption. If an employee is flagged for exemption the effective dates must be provided.

Target Dates

The following target dates are subject to change:

  • 8.1 (on-premise): MR 8.1.24 (September 18, 2023)

  • 8.2 (on-premise): MR 8.2.3 (September 2, 2023)

Washington 2023 SUTA Wage Base

Costpoint will be updated to support the new Washington SUTA taxable wage base limit to $67,600 (from $62,500 in 2022 with an effective date of 01/01/2023.

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 17, 2022)

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

Washington Q4 2022 SUTA Electronic Filing

The Washington State Employment Security Department updated the ICESA SUTA reporting format beginning with the fourth quarter filing in 2022.

State Requirements

For more information, refer to:

Release Dates

  • 8.0 (on-premise): MR 8.0.28 (November 14, 2022)

  • 8.1 (on-premise): MR 8.1.13 (October 31, 2022)

Washington 2022 SUTA Wage Base

Costpoint has been updated to support the new Washington SUTA taxable wage base limit of $62,500 with an effective date of 01/01/2022.

  • 7.1.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.15 (October 25, 2021)
  • 8.1 (on-premise): MR 8.1.1 (October 21, 2021)

Washington 2021 SUTA Wage Base

Costpoint has been updated to support the new Washington SUTA taxable wage base limit of $56,500 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.10 (October 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.2 (October 12, 2020)

West Virginia State 2023 Tax Withholding

West Virginia’s withholding methods were updated following the signing into law of a recent income tax cut.

  • The state’s first update since 2007 retains a system of two percentage methods, one for two earners or multiple jobs and one for one earner or one job.

  • The value of a state allowance is $2,000 annually, unchanged from the previous revision.

Release Dates

The following target dates are subject to change:

  • 8.0 (on-premise): MR 8.0.33 (April 10, 2023)

  • 8.1 (on-premise): MR 8.1.19 (May 1, 2023)

West Virginia Q1 2023 SUTA Electronic Filing

According to the WorkForce West Virginia Magnetic Media Wage Reporting Specifications Manual, employers must report the SOC Code (or Employee Job Title) and County Name in the Quarterly Unemployment Insurance Wage Report.

State Requirements

For more information, refer to the Magnetic Media Wage Reporting Specifications Manual.

Release Dates

  • 8.0 (on-premise): MR 8.0.32 (March 13, 2023)

  • 8.1 (on-premise): MR 8.1.17 (February 28, 2023)

West Virginia 2022 SUTA Wage Base

West Virginia lowered their SUTA taxable wage base limit to $9,000 (down from $12,000) with an effective date of 01/01/2022.

Release Dates

  • 8.0 (on-premise): MR 8.0.20 (March 28, 2022)
  • 8.1 (on-premise): MR 8.1.6 (March 21, 2022)

Wisconsin State 2022 Tax Withholding

The Wisconsin Department of Revenue updated their withholding methods. The withholding guide was revised under updates that are effective Jan. 1, 2022.

  • The income tax rates that are used in the formula range from 3.54% to 7.65%, which is a change from the previous range from 4% to 7.65%.
  • The formula’s tax bracket thresholds and standard deductions are increased.
  • The flat supplemental rates, which can be arrived at by estimating an employee’s annual gross salary and applying the relevant tax rate to supplemental payments, range from 3.54% from 7.65%, rather than the previous range from 4% to 7.65%.

State Requirements

For more information, refer to: https://www.revenue.wi.gov/DOR%20Publications/pb166.pdf%20

Release Dates

  • 7.1 (on-premise): MR 7.1.24 (November 17, 2021)
  • 8.0 (on-premise): MR 8.0.16 (December 3, 2021)
  • 8.1 (on-premise): MR 8.1.2 (November 24, 2021)

Wyoming 2023 SUTA Wage Base

Costpoint will be updated to support the new Wyoming SUTA taxable wage base limit of $29,100 with an effective date of 01/01/2023.

Release Dates

  • 8.1 (on-premise): MR 8.1.14 (December 5, 2022)

  • 8.0 (on-premise): MR 8.0.29 (December 19, 2022)

Wyoming 2022 SUTA Wage Base

The Wyoming Department of Workforce Services increased their SUTA taxable wage base limit from $27,300 in 2021 to $27,800 in 2022.

Release Dates

  • 7.1 (on-premise): MR 7.1.28 (February 25, 2022)
  • 8.0 (on-premise): MR 8.0.19 (February 28, 2022)
  • 8.1 (on-premise): MR 8.1.5 (February 21, 2022)

Wyoming 2021 SUTA Wage Base

Costpoint has been updated to support the new Wyoming SUTA taxable wage base limit of $27,300 with an effective date of 01/01/2021.

Release Dates

  • 7.1.1 (on-premise): MR 7.1.11 (October 29, 2020)
  • 7.1.7 Hot Fix (on-premise): Hot Fix 7.1.7.3 (October 23, 2020)
  • 8.0 (on-premise): MR 8.0.3 (November 10, 2020)