2020 ACA Form 1095-C and 1094-C Alignment Updates

This Costpoint release updates following applications to support the alignment of the 2020 Form 1095-C and Form 1094-C:

• Print 1094-Cs (HBR1094C)

• Print 1095-Cs (HBR1095C)

2020 US Virgin Islands 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%).

This Costpoint release adds a record on the FUTA Credit Reduction States table of the Manage Federal Taxes screen for Virgin Islands.

Attention: For more information, refer to the Schedule A (Form 940) for 2020: https://www.irs.gov/pub/irs-pdf/f940sa.pdf.

Note: This enhancement requires PATCH3818.

2021 Nonresident Alien Additional Amounts

The following are the 2021 updates for the nonresident alien additional amounts:

• The amount added to the wages of a nonresident alien employee, who was first paid wages before 2020 and has not submitted a Form W-4 for 2020 or later, has increased from $8,100 to $8,250.

• The amount added to the wages of a nonresident alien employee, who was first paid wages in 2020 or later or has submitted a Form W-4 for 2020 or later, has increased from $12,400 to $12,550.

This Costpoint release updates the Nonresident Alien Additional Amount on the Manage Federal Taxes screen for Payroll Year 2021. The Compute Payroll screen was updated to support the 2021 nonresident alien additional amounts for federal withholding.

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

Note: This enhancement requires PATCH3821.

2021 W-4 Deductions Worksheet (Final)

The Internal Revenue Service (IRS) supplied the final version of the 2021 W-4 and introduced changes to Step 4(b)–Deductions Worksheet.

2021 Form W-4

This Costpoint release updates the following screens to comply with the final version of the worksheet:

• Costpoint Employee Self Service (ESS) Federal Withholding - Multiple Jobs/Deductions Worksheet tab

• Costpoint Employee Self Service (ESS) Life Events/New Hires screen - Federal Withholding - Deductions Worksheet tab

Attention: The Deductions Worksheet was updated due to the enactment of the 2021 Consolidated Appropriations Act on December 27, 2020. Line 1 of the Deductions Worksheet should now indicate “medical expenses in excess of 7.5% of your income” instead of “medical expenses in excess of 10% of your income,” which was indicated on the previous 2021 Form W-4. This updated text will be reflected in the Deductions Worksheet of Costpoint ESS applications in future releases.

For more information about the 2021 Consolidated Appropriations Act, refer to https://aboutbtax.com/UJc.

Note: This enhancement requires PATCH3819.

Federal Tax Updates

The following are updates to federal taxes for 2021.

Percentage Method Tables

The percentage method tables have been updated for 2021. This Costpoint release adds 2021 tax tables on the Manage Federal Tax Tables screen to support the tax update.

Attention: For more information, refer to the Federal Income Tax Withholding Methods: https://www.irs.gov/pub/irs-pdf/p15t.pdf.

Note: This enhancement requires PATCH3819.

Reissued 2021 Form W-4 - Deductions Worksheet Update

The Deductions Worksheet was updated in the reissued 2021 Form W-4 due to the enactment of the 2021 Consolidated Appropriations Act on December 27, 2020.

The only change that was made on the reissued Form W-4 is the updated qualifying medical expenses percentage in Line 1 of the Deductions Worksheet.

Line 1 now indicates “medical expenses in excess of 7.5% of your income” could be included in the employee’s 2021 itemized deductions estimate. The previous 2021 Form W-4 indicated that “medical expenses in excess of 10% of your income” could be included in the employee’s 2021 itemized deductions estimate.

This Costpoint release updates the following screens to comply with the reissued version of the worksheet:

• Costpoint Employee Self Service (ESS) Federal Withholding screen - Multiple Jobs/Deductions Worksheet tab

• Costpoint Employee Self Service (ESS) Life Events/New Hires screen - Federal Withholding screen - Deductions Worksheet tab

Attention: For more information, refer to the following:

• 2021 Form W-4: https://www.irs.gov/pub/irs-pdf/fw4.pdf

• 2021 Consolidated Appropriations Act: https://aboutbtax.com/UJc

2021 SUTA Wage Base Updates

This Costpoint release adds tax table records effective 01/01/2021 for states where the unemployment-taxable wage base has been updated for tax year 2021.

Alaska

The SUTA limit for 2021 is $43,600.

Hawaii

The SUTA limit for 2021 is $47,400.

Illinois

The SUTA limit for 2021 is $12,960.

Idaho

The SUTA limit for 2021 is $43,000.

Kentucky

The SUTA limit for 2021 is $11,100.

New Mexico

The SUTA limit for 2021 is $27,000.

North Dakota

The SUTA limit for 2021 is $38,500.

Rhode Island

The SUTA limit for 2021 is $24,600.

Note: These enhancements require the following:

• PATCH3818

• PATCH3819

• PATCH3821

Arkansas 2021 Tax Table Updates

The state of Arkansas Department of Finance has released their withholding formula with an effective date of January 1, 2021.

• The threshold for adjusting the net taxable income at the $50 range (midrange of 100) increased from $87,001 to $88,001.

• The value of a state withholding allowance increased from $26 to $29.

• 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.

This Costpoint release adds tax tables with an effective date of 01/01/2021 for Arkansas and updates the Compute Payroll screen to support the new Arkansas state withholding allowance.

Attention: For more information, refer to the Withholding Tax Formula Method: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/whformula.pdf.

Note: This enhancement requires PATCH3818.

Guam 2021 Tax Table Updates

This Costpoint release updates the tax tables of Guam based on the 2021 federal income tax withholding methods.

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

Note: This enhancement requires PATCH3822.

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. For Hawaii employees and withholding, you must use the Social Security Administration’s EFW2 format.

This Costpoint release updates the Create State W-2 File screen to support the EFW2 file for Hawaii W-2 electronic reporting.

Attention: For more information, refer to the EFW2 and EFW2C Format Forms W-2 and W-2C: https://files.hawaii.gov/tax/eservices/ebiz/20pubef10-HI_EFW2SpecsGuide-v1rev102020.pdf.

Illinois 2021 Tax Table Updates

The value of the state withholding allowance in the withholding formula increased from $2,325 to $2,375.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Illinois.

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

Note: This enhancement requires PATCH3822.

Kentucky 2021 Tax Table Updates

The standard deduction amount for Kentucky increased from $2,650 to $2,690.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Kentucky.

Attention: For more information, refer to: https://revenue.ky.gov/Forms/2021%2042A003(TCF)(12-2020).pdf.

Note: This enhancement requires PATCH3821.

Michigan 2021 Tax Table Updates

The personal exemption amount for Michigan increased from 4,750 to $4,900.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new personal exemption amount for Michigan.

Attention: For more information, refer to the 2021 Michigan Income Tax Withholding Guide: https://www.michigan.gov/documents/taxes/446_711611_7.pdf.

Note: This enhancement requires PATCH3824.

Minnesota 2021 Tax Table Updates

The following are the 2021 tax table updates for Minnesota:

• The amount of one withholding allowance increased from $4,300 to $4,350.

• The withholding tables for Single and Married have been updated.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Minnesota.

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

Note: This enhancement requires PATCH3823.

Mississippi 2021 Tax Table Updates

The annual withholding percentage table for Mississippi was updated.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Mississippi.

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

Note: This enhancement requires PATCH3826.

Missouri 2021 Tax Table Updates

The following are the 2021 tax withholding updates for Missouri:

• The standard deduction amounts have increased.

• The tax bracket thresholds used in the formula were adjusted.

Attention: For more information, refer to the State of Missouri Employer’s Tax Guide: https://dor.mo.gov/forms/4282_2021.pdf.

Note: This enhancement requires PATCH3819.

New Mexico 2021 Tax Table Updates

The following are the 2021 tax table updates for New Mexico:

• The percentage method implements a new 5.9% income tax bracket.

• The supplemental tax rate increased from 4.9% to 5.9%.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for New Mexico.

Note: This enhancement requires PATCH3823.

New York State/City of Yonkers Updates

The following are the 2021 tax withholding updates for New York:

• The annual withholding tax tables for Married and Single were updated.

• The amount of the adjustment for the difference between federal and New York State withholding allowances increased from $3,200 to $3,300.

Single

Married

Attention: For more information, refer to the following:

• New York State: https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys_121.pdf

• City of Yonkers: https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_y_121.pdf

Note: This enhancement requires PATCH3819.

North Dakota 2021 Tax Table Updates

The following are the 2021 tax table updates for North Dakota:

• The tax brackets used in the withholding method for Forms W-4 before 2020 were adjusted.

• The tax brackets used in the withholding method for Forms W-4 for 2020 and after were adjusted.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for North Dakota.

Attention: For more information, refer to: https://www.nd.gov/tax/data/upfiles/media/income-tax-withholding-rates-and-instructions-booklet-2021.pdf.

Note: This enhancement requires PATCH3821.

Oregon 2021 Tax Table Updates

Beginning tax year 2021, Oregon requires the following:

• Married employees should continue to use the existing MARRIED OR SINGLE filing status. The description has been changed to “Married” from “Married or Single with 3 or more allowances”, but the existing filing status code of “MARRIED OR SINGLE” has been retained.

• Single employees claiming three or more allowances should update their filing status to SINGLE 3 OR MORE ALLOWANCES if their existing filing status is MARRIED OR SINGLE.

To support Oregon’s requirements, Costpoint added a new filing status of “SINGLE 3 OR MORE ALLOWANCES” and updated the description of the existing “MARRIED OR SINGLE” status from “Married or Single with 3 or more allowances” to “Married”. The following withholding state filing statuses are now available for Oregon:

• Married (MARRIED OR SINGLE): Select this filing status if the employee is married.

• Single with 3 or more allowances (SINGLE 3 OR MORE ALLOWANCES): Select this filing status if the employee is single and claiming three or more allowances.

• Single with 2 or less allowances (SINGLE): Select this filing status if the employee is single and claiming less than three allowances.

The following are the 2021 tax table updates for Oregon:

• The federal tax adjustment amount increased from $6,950 to $7,050 for an employee with annual wages up to $50,000.

• The federal tax adjustment phaseout amounts for an employee with annual wages of $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 of $50,000 or greater.

• The allowance amount increased from $210 to $213.

• The standard deduction amount increased from $2,315 to $2,350 for an employee filing “Single” with fewer than 3 allowances.

• The standard deduction amount increased from $4,630 to $4,700 for an employee filing “Single” with 3 or more allowances.

• The standard deduction amount increased from $4,630 to $4,700 for an employee filing “Married”.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Oregon. The Compute Payroll application was updated to remove the special programming regarding the use of the MARRIED OR SINGLE table if an employee is Single with 3 or more allowances as it is no longer needed because of the new filing status “SINGLE 3 OR MORE ALLOWANCES”.

Attention: For more information, refer to: https://www.oregon.gov/dor/forms/FormsPubs/withholding-tax-formulas_206-436_2021.pdf.

Note: This enhancement requires PATCH3822.

Puerto Rico 2020 SUTA Electronic Filing

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

This release applies updates to the Manage SUTA Tax File Data screen and the Create Quarterly SUTA Tax File screen to support the requirements of Puerto Rico.

Attention: For more information, refer to: https://patronos.trabajo.pr.gov/patronos/Help/Help_EN/default.htm?turl=aboutus.htm.

Rhode Island 2021 Tax Table Updates

The following are the 2021 tax table updates for Rhode Island:

• The annual withholding table has been updated.

• The threshold for 0.00 allowance amount increased from $231,500 to $234,750.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Rhode Island.

Attention: For more information, refer to: http://www.tax.ri.gov/forms/2021/Withholding/2021%20Withholding%20Tax%20Booklet.pdf.

Note: This enhancement requires PATCH3822.

Vermont 2021 Tax Table Updates

The following are the 2021 tax table updates for Vermont:

• The annual percentage method withholding tables for Married and Single have been updated.

• The value of a withholding allowance increased from $4,350 to $4,400 annually.

This Costpoint release adds tax table records with an effective date of 01/01/2021 to support the new tax table updates for Vermont.

Attention: For more information, refer to: https://tax.vermont.gov/sites/tax/files/documents/WithholdingInstructions.pdf.

Note: This enhancement requires PATCH3822.

Virgin Islands 2021 Tax Table Updates

This Costpoint release updates the tax tables of the Virgin Islands based on the 2021 federal income tax withholding methods.

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

Note: This enhancement requires PATCH3822.

Defect 1411670: When you ran Update Material Requirements Plan, the process completed with errors.

Defect 1410126: The application imported records with invalid organizations into the EMPL_LAB_INFO table. The application generated an error message on the error report, but it still imported the file into the EMPL_LAB_INFO table.

This issue occurred when the import file contained two sets of data with different effective dates for the same employee. However, one line has an invalid organization, while the other line has the correct organization.

Defect 1410127: When you ran the import process, you received a critical system error, and then Costpoint logged you out. This issue occurred instead of you just receiving the error on the error log.

 

As a workaround, fix all the errors found on the report before you proceed with the process.

Defect 1410128: A system error occurred when two users simultaneously printed the report.

Defect 1410129: When you used the user-defined file format to import employee data, the application displayed an error when it attempted to change fields that were not selected in the format. As a workaround, you can select a different file format in the preprocessor.

Defect 1402378: The following Box 14 descriptions should only print if the corresponding amount is not equal to 0.00:

• Sick leave subject to $511/day limit

• Sick leave subject to $200/day limit

• Emergency family leave wage

Defect 1410801: When the application determines that the employee has COVID sick/family leave wages, the application should check if an accrual or expense account exists on the Employee Earnings Timesheet Information (EMPL_EARN_TS_INFO) table. Previously, the application only determined if an expense account existed on the Employee Earnings Timesheet Information table.

 

As a workaround, you can manually enter the data on the Manage W-2s screen and run the Create W-2 Table application again.

Defect 1402528: The application should not generate Box 14 records if the corresponding amount is not equal to 0.00.

Defect 1402546: When you save a Manage W-2s screen record, the application should only automatically populate the description fields on the COVID 19 Box 14 subtask if the corresponding amount is not 0.00.

Defect 1401447: When you selected the Create payroll records to repay deferred Social Security toolkit and then selected the Range or From Beginning option as the range type for Employees, the application did not select valid employees for processing.

Defect 1409722: The employer social security taxable amount was calculated incorrectly for correction records where the gross pay was zero and the employee social security taxable amount was negative. As a result, the application reported incorrect Qualified sick and family leave wages. This issue affects you if you enter correction records that have negative social security taxable amounts.

Defect 1406959: When you did not have a license for Costpoint Payroll, the estimated figure for the following was incorrect:

• Annual Average Number of Employees

• Total Hours Worked by All Employees Last Year

The Annual Average Number of Employees used the hire/termination dates to estimate employment instead of the number of employees paid in every pay period. The Total Hours Worked by All Employees Last Year did not exclude non-work time such as vacation, sick leave, and holidays. Temporary employees are also being excluded in the employment information.

 

This defect affects you if you are required to report OSHA 300A.

 

To address this issue, Costpoint applies the following updates to the OSHA 300A - Employment Information:

• A Use Pay Periods check box was added as an option for the Annual Average Number of Employees. This option is only available and selected by default if you are licensed for Payroll.

• If you select the Use Pay Periods check box, then the annual average number of employees will be calculated by adding the number of employees paid in every pay period and dividing the sum by the number of pay periods.

• The annual average number of employees will be calculated depending on the hire/term date if you are not licensed for Payroll or if the Use Pay Periods check box is clear.

• If you are licensed for Payroll, the total hours worked will be based on the pay type hours in employee earnings.

• If you are not licensed for Payroll, the total hours worked will be based on the charged hours in posted timesheets.

• All employees will be considered in the annual average number of employees and total hours worked. Temporary employees were previously excluded.

• Leave hours and non-work time will be excluded from the total hours worked. These hours were previously included.

Defect 1406696: Revenue Analysis did not include accounting revenue adjustments as a line item.

Defect 1406891: When you accessed a working EAC, Revenue Analysis failed initially to display values from the previous EAC version.

Defect 1407654: The system was pulling an incorrect hourly rate for Generic Staff when the rate was zero.

Defect 1401544: When you reassigned hours from a selected resource to a new resource, the new resource was not added to the selected resource list.