Arkansas 2025 Updates

The updates for Arkansas are:

• The tax brackets for the percentage method have been updated.

• The standard deduction amount increases from $2,340 to $2,410.

 

Formula Method

1.  Multiply the Period Gross Pay by the number of pay periods per year to arrive at the annual gross pay.

2.  Subtract the Standard Deduction of $2,410 to arrive at Net Taxable Income. If Net Taxable Income is below $100,001, look up the income at the $50 range (midrange of $100). For $100,001 and over, use the exact dollar figure.

3.  Compute the Annual Gross Tax on the Net Taxable Income using the bracket below and round that result.

4. Multiply the total number of Withholding Exemptions claimed on Form AR4EC by $29.00 to arrive at the total amount of Annual Personal Tax Credits allowed.

5. Subtract the Annual Personal Credits from the Annual Gross Tax computed to arrive at the Annual Net Tax that will be owed.            

6. Divide the Annual Net Tax by the number of Pay Periods in the year to arrive at the proper state withholding amount.  

 

For more information, see the Department of Finance and Administration Withholding Tax Formula Method: https://www.dfa.arkansas.gov/wp-content/uploads/whformula_2024_1.pdf

Illinois 2025 Updates

The update for Illinois is the value of the state allowance increases from $2,775 to $2,850.

Louisiana 2025 Updates

The updates for Louisiana are:

• Personal exemptions and credits have been replaced with the following standard deductions:

  • Single Individual or Married-Separate: $12,500

  • Married-Joint, Qualified Surviving Spouse, or Head of Household: $25,000

• The bracket system has been replaced with a new withholding rate of 3.09%.

 

Withholding Tax Tables

For the purposes of the withholding tax tables:

1. Filers utilizing a filing status of Single Individual or Married-Separate are allowed a standard deduction in the amount of $12,500.00

2. Filers utilizing a filing status of Married-Joint, Qualified Surviving Spouse, or Head of Household are allowed a standard deduction in an amount equal to 200% of the dollar amount provided for single individuals.

 

Income Tax Withholding Formulas

The overall structure of the formulas used to compute the withholding tax is to calculate the tax on the total wage amount and then subtract the amount of tax calculated on the standard deduction.

The correct withholding formula depends upon the standard deduction amount claimed and annual wages.

Effective on or after January 1, 2025:

1. Withholding Formula for Taxpayers Not Claiming a Standard Deduction:

   • W is the withholding tax per pay period.

   • S is employee’s salary per pay period for each bracket, based on the midpoint of salary ranges.

   • N is the number of pay periods. W = S * .0309

2. Withholding Formula for Single or Married-Separate Taxpayers Claiming the Standard Deduction:

   • W is the withholding tax per pay period.

   • S is employee’s salary per pay period for each bracket, based on the midpoint of salary ranges.

   • N is the number of pay periods. W = (S - (12500 / N)) * .0309

3. Withholding Formula for Married-Joint Return, Qualified Surviving Spouse, or Head of Household Taxpayers Claiming the Standard Deduction:

   • W is the withholding tax per pay period.

   • S is employee’s salary per pay period for each bracket, based on the midpoint of salary ranges.

   • N is the number of pay periods. W = (S - (25000 / N)) * .0309

 

Emergency Rule

The Louisiana personal income tax withholding tables were adjusted on an emergency basis.

 

The Emergency Rule was also necessary to allow the Secretary to effectively administer the updated withholding tables due to the new flat three percent individual income tax rate and the time constraints related to the legislative passage of Act 11 of the 2024 Third Extraordinary Session of the Louisiana Legislature, which has an effective date of January 1, 2025. Act 11 amended R.S. 47:32 to repeal the graduated rates and brackets for individuals in favor of a flat 3% tax rate applicable to all taxable income for tax years beginning on or after January 1, 2025.

 

The Department’s use of the Emergency Rule aims to prevent undue delay in notifying employers of the updated withholding requirements so as to ensure that employers are in compliance with the updated requirements, thereby avoiding unnecessary penalties and incorrect withholding of income tax for taxpayers. Employers should begin using the 2025 withholding tables for the first payment of wages made after December 31, 2024.

 

The Emergency Rule are effective January 1, 2025, and will remain in effect for 180 days, unless renewed or revoked, or until the adoption of the final Rule, whichever comes first. 

Source: VitalLaw

 

For more information, see the Declaration of Emergency:
https://revenue.louisiana.gov/LawsPolicies/ER_61.I.1501_Withholding%20Tables%20(Clean%20Copy).pdf

Maryland 2025 Updates

The updates for Maryland are:

Standard Deduction

• The minimum standard deduction increases from $1,800 to $1,850.

• The maximum standard deduction decreases from $2,700 to $2,800.

Maryland Counties

Four Maryland counties adjusted their income tax rates for 2025. For 2025, following brackets will be used: 2.25%, 2.40%, 2.65%, 2.75%, 3.00%, 3.05%, 3.10%, and 3.20%

 

• Anne Arundel County: the local tax rates for taxable year 2025 are as follows:

  • For taxpayers with filing statuses of Single, Married Filing Separately, or Dependent, the local tax rates are as follows:

    • .0270 of Maryland taxable income of $1 through $50,000;

    • .0294 of Maryland taxable income of $50,001 through $400,000; and

    • .0320 of Maryland taxable income of over $400,000

  • For taxpayers with filing statuses of Married Filing Jointly, Head of Household, or Qualified Surviving Spouse, the local tax rates are as follows:

    • .0270 of Maryland taxable income of $1 through $75,000;

    • .0294 of Maryland taxable income of $75,001 through $480,000; and

    • .0320 of Maryland taxable income of over $480,000

• Calvert County: from 3.00% to 3.20%.

• Cecil County: from 2.75% to 2.74%.

  • Although Cecil's rate decreased to 2.74%, the rate brackets applied will remain unchanged at 2.75%.

• St Mary’s: from 3.00% to 3.20%.

For more information, see the Maryland Withholding Tax Facts: https://interactive.marylandtaxes.gov/forms/Tax_Publications/Tax_Facts/Withholding_Tax_Facts/Withholding-Tax-Facts-2025.pdf

Minnesota 2025 Updates

The updates for Minnesota are:

• The value of a state allowance increases from $5,050 to $5,200.

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

Computer Formula

If you use a computer to determine how much to withhold, use the formula below to set up your program. This formula supersedes any formulas before Jan. 1, 2025.

1. Determine the employee’s total wages for one payroll period.

2. Multiply the total wages from step 1 by the number of payroll periods you have in a year. The result is the employee’s annual wage.

3. Multiply the number of the employee’s withholding allowances by $5,200.

4. Subtract the result in step 3 from the result in step 2. If zero or less, stop here. There is no tax to withhold.

5. Use the result from step 4 and the chart below to figure an amount for step 5.

6. Divide the result in step 5 by the number of payroll periods that you used in step 2. You may round the amount to the nearest dollar. The result is the amount of Minnesota income tax to withhold from the employee’s wages.

 

For more information, see the Minnesota Income Tax Withholding:  https://www.revenue.state.mn.us/sites/default/files/2024-12/wh-inst-25_0.pdf

Mississippi 2025 Updates

The update for Mississippi is that the withholding tax rate decreases from 4.7% to 4.4%.

For more information, see the Computer Payroll Accounting: https://www.dor.ms.gov/sites/default/files/Business/Computer%20Payroll%20Flowchart%20-%2009-26-23.pdf

New York Electronic Reporting of Quarterly Wage and Withholding Tax Information 2025 Updates

Changes to New York’s quarterly withholding and unemployment tax return, including the ability to file amended returns online, are planned to launch in March 2025, the state’s Department of Taxation and Finance said.

• On Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, you must file all parts together as a single return.

  • This includes Part A – Unemployment insurance (UI) information, Part B – Withholding tax (WT) information, and Part C – Quarterly employee/payee wage reporting and withholding information. You no longer have the option to file the three parts separately. Additionally, if you are required to report both Wages and Other wages, you must submit this information on one return.

• On Form NYS-45 Part C, you must separately report New York State, New York City, and Yonkers tax withheld for each employee.

  • Part C - Employee wage and withholding information will be uploaded in the NYS-45 Web File application.

  • The Web application will accept files with a .csv, .zip, .txt, or .rpt extension.

For more information, see the NYS-45 Web File: Upload options for reporting employee wage and withholding data (Part C): https://www.tax.ny.gov/e-services/wcwf/#upload-specs

North Dakota 2025 Updates

The updates for North Dakota are:

• The value an allowance used with Forms W-4 before 2020 increases from $4,300 to $5,050.

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

Percentage Method (Forms W-4 before 2020)

This method works for any number of withholding allowances claimed by an employee and any amount of wages. Under this method, determine the amount to withhold in the following steps:

1. Determine the amount of one withholding allowance annually.

• Amount of One Withholding Annually: $5,050

2. Multiply the amount (from step 1) by the number of withholding allowances claimed on Form W-4.

3. Subtract the result (in step 2) from the employee’s gross wages for the payroll period.

4. Calculate the amount to withhold on the result (in step 3) using the Single Person or Married Person table, whichever applies. Round the result to the nearest whole dollar amount.

Withholding Methods for Forms W-4 For 2020 and After

Percentage Method Worksheet

1. Enter taxable wages paid to employee for pay period.

2. Enter number of pay periods for the year from Payroll Period Table.

3. Annual taxable wage amount. Multiply line 1 by line 2.

4. Calculate the annual withholding amount on the amount on line 3 using the Annual Percentage Method Table for the employee’s filing status from the Form W-4, Step 1(c), and enter the result.

5. Amount to withhold for pay period. Divide line 4 by line 2.

 

For more information, see Income Tax Withholding Rates & Instructions: https://www.tax.nd.gov/sites/www/files/documents/misc-discuss-folder/Final_2025%20Income%20Tax%20Withholding%20Rates%20%20Instructions.pdf

Oregon 2025 Updates

The updates for Oregon are:

• The federal tax adjustment amount for an employee with annual wages up to $50,000 increases from $8,250 to $8,500.

• The allowance amount increases from $249 to $256.

• The standard deduction amount increases for the following statuses.

  • Employee filing Single with fewer than 3 allowances: from $2,745 to $2,835. 

  • Employee filing Single with 3 or more allowances: from $5,495 to $5,670.

  • Employee filing Married: from $5,495 to $5,670.

• The federal tax adjustment phase-out amounts for an employee with annual wages of $50,000 or greater have changed in 2025.

• 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.

 

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 the standard deduction. The federal tax adjustment in the formula can’t be more than $8,500 per year in 2025. Once you figure out the base, use the base in the formulas below to compute your Oregon withholding (WH).

 

 

For more information, see the Oregon Withholding Tax Formulas: https://www.oregon.gov/dor/forms/FormsPubs/withholding-tax-formulas_206-436_2025.pdf

Vermont 2025 Tax Updates

The updates for Oregon are:

• The value of a state allowance increases from $5,100 to $5,300.

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

Instructions

1. Multiply the amount of one allowance by the number of allowances claimed by the employee on form W-4VT. Subtract this amount from the amount of payment.

• One withholding allowance: $5,300

2. Compute the Vermont tax on the amount from Step 1, using the following table:

 

For more information, see the 2025 Income Tax Withholding Instructions, Tables, and Charts: https://tax.vermont.gov/sites/tax/files/documents/GB-1210-2025.pdf

West Virginia 2025 Tax Update

The update for West Virginia is that the percentage method withholding tables have been updated. The tax rates decrease from a range of 2.36%–5.12% to 2.22%–4.82%.

For more information, see the Tables for Percentage Method of Withholding: https://tax.wv.gov/Documents/Withholding/it100.2a.pdf

Choose Project Level or Lowest WBS Level for Project Forecast Reports

You can now use the Use Project Level Compensation Amounts and Milestone Dates to Allocate Revenue on Awarded Projects checkbox on the Columns & Groups tab of the Project Forecast report form to select whether to report revenue forecasts and view compensation and contract amounts at the project (WBS1) level or at the WBS levels to which they are assigned.

• When the checkbox is cleared (default setting), the report displays compensation amounts and milestone dates from the lowest WBS level for awarded projects that are not assigned the Use Revenue Forecasts fee allocation method in Hubs » Projects » Contract Management.

• When the checkbox is selected, the report allocates revenue based on the project level compensation amounts and milestone dates into the period columns for awarded projects that are not reporting revenue forecast amounts. You can continue to select phase and task number groups for other columns, but any allocated revenue amounts for those levels are not displayed.

For more information, see Columns & Groups Tab of the Project Forecast Report.

Defect 2332813: In Settings > Cash Management > Banks, when you set Summarize Electronic Payment Runs to Yes, the automatic function to clear matched transactions import failed to work. When you tried to save matched transactions, the Save button was grayed out.

Defect 2311735: Dashparts with the AR Detail dashpart base that included the AR Aging Date column took longer than normal to display.

Defect 2324768: When you searched for projects in the Timesheet Project search, the Restrict Charge Companies and Treat Inactive Projects as Dormant settings were not applied.

Defect 2330552: The Project/Phase/Task Lookup dialog box did not return all records according to your search criteria even when you entered values that match the records on file.

Defect 2324667: When you used a Workflow button in the hub to update a custom field, the changes did not automatically appear in the form.

Defect 2321955: When the Create Voucher from Purchase Order option is enabled and then you approved the final step in AP Invoice Approvals, an 'Error while creating AP Detail Tax records' message displayed.

Defect 2320841: When you ran the Key Conversion utility for projects, the error message 'Invalid column name 'AuditKeyValuesDelete'' was displayed. 

Defect 2317664: This occurred if you use custom reports and the Report Administration opt-in feature is disabled. The Custom Reports tab did not display in the Report Administration form in Utilities > Report Administration on the desktop application.