Arkansas 2026 Tax Updates

The updates for Arkansas are effective immediately:

• The tax brackets have been adjusted:

  • The highest tax rate decreases from 3.9% to 3.7%.

  • The bottom two rows were removed so that the last row starts at $97,601 of annual income instead of $97,801.

• The supplemental tax rate decreases from 3.9% to 3.7%.

 

For more information, see the State of Arkansas Department of Finance and Administration Withholding Tax Employer’s Instructions: https://www.dfa.arkansas.gov/wp-content/uploads/Withholding-Tax-Instructions-for-Employers.pdf

Georgia 2026 Tax Updates

The updates for Georgia are effective immediately:

• The tax rate decreases from 5.19% to 4.99%.

• The standard deductions increases annually:

  • Married Filing Jointly: from $24,000 to $30,000.

  • All other Statuses: from $12,000 to $15,000.

• The dependent allowance increases annually from $4,000 to $5,000.

• The supplemental tax rate decreases from 5.19% to 4.99%.

 

Percentage Method for Employee Withholding

Use these instructions to calculate employee withholding using the percentage method.

1. Subtract the applicable standard deduction as indicated in column (1) - (3) of Table E.

2. If employees claim dependents, subtract from the amount arrived at in (1) the appropriate dependent amount as set out in column (4) of Table E.

 

3. Multiply the amount arrived in (2) by 4.99%.
4. If zero exemption is claimed, subtract the standard deduction only.

Note: Employers must continue to withhold at the rate of 5.19% before the effective date of the change and can begin withholding at the new rate of 4.99%, starting May 11, 2026.

For more information, see the Georgia Department of Revenue Employer’s Tax Guide:
https://dor.georgia.gov/employers-tax-guide

Idaho 2026 Tax Updates

The updates for Idaho are effective immediately:

• The upper threshold for the zero-tax bracket increases:

• Single and Head of Household: from $15,000 to $16,100.

• Married: from $30,000 to $32,200.

• Allowances will no longer be used by the state to calculate withholding because the Idaho Child Tax Credit is no longer in effect.

Kentucky Q3 2026 SUTA Electronic Filing

Kentucky will replace the existing UI system with the Kentucky Unemployment Insurance Portal (KUIP).

Beginning August 17, 2026, all tax-related unemployment insurance activities, including filing, will take place in the new system.

 Wage reporting in the new system

• KUIP supports an updated, leaner ICESA file format and a new CSV (comma-separated values) delimited file format.

ICESA in the new system

• Only requires:

  • E-Record – Employer Header Record

  • S-Record – Employee Detail Record

• Employer identification in KUIP uses a nine-digit Kentucky Employer Identification Number (KEIN)

• New data elements include:

  • Adjustment reason codes

  • Reporting unit number

  • Owner/officer indicator

  • Employment indicators (12th-of-month flags)

  • Out-of-state wages and state code fields

 

• Many ICESA fields are marked “Not Used by KUIP”

ICESA: https://kcc.ky.gov/career/resources/Documents/KUIP%20ICESA%20File%20Format%20Reference%20Guide.pdf

CSV: https://kcc.ky.gov/Documents/KUIP%20Delimited%20File%20Format%20Reference%20Guide.pdf

For more information, see the Kentucky Unemployment Insurance Portal Employer and Third-Party Administrator FAQ:

https://kcc.ky.gov/career/resources/Documents/KUIP%20Employer%20and%20Third-Party%20Administrator%20FAQ%20Document.pdf

Michigan Q2 2026 SUTA Electronic Filing

 

The Michigan UIA released Version 2 (v2) of the EFW2 File Format Employer Reference Document to clarify employee-level reporting rules in the Employee Detail Record (RS).

 

Compared to Version 1 (v1), v2 introduces three related updates:

1. Reason or Adjustment Code (RS 344-345) defaulting logic
   Blank Reason or Adjustment Codes now default to:

   • “00” for original submissions

   • “01” for adjustment submissions replacing the v1 behavior where blank adjustment records defaulted to “10” (Out of State Wages)

2. Explicit definition of Reason or Adjustment Code “00”
   The description of code “00” has been updated to explicitly state that it represents an original submission that does not include out-of-state wages.

3. Out of State Wages (RS 348-358) field formatting
   If there are not out-of-state wages to report, the Out of State Wages field must contain exactly eleven (11) blank spaces.

 

EFW2 v1: See attached.

EFW2 v2: MiUI EFW2 File Format v2

 

ICESA Updates: MiUI ICESA File Format v2

1. Reason or Adjustment Code (S 46-47) defaulting logic
   Blank Reason or Adjustment Codes now default to:

   • “00” for original submissions

   • “01” for adjustment submissions replacing the v1 behavior where blank adjustment records defaulted to “10” (Out of State Wages)

2. Explicit definition of Reason or Adjustment Code “00”
   The description of code “00” has been updated to explicitly state that it represents an original submission that does not include out-of-state wages.

3. Out of State Wages (S 233-243) field formatting
   If there are no out-of-state wages to report, the Out of State Wages field must contain exactly eleven (11) blank spaces.

 

Other MiUI File Formats

CSV: MiUI Delimited File Format v3

XML: MiUI XML File Format v1

Ohio 2026 Tax Update

 

The update for Ohio, effective immediately, is the new tax rate range decreases from 1.775% - 3.64% to 1.60% - 3.40%.

 

 

 

For more information, see the Employer Withholding Taxes: Optional Computer Formula: https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/employer_withholding/2026%20Withholding%20Tables/WHT_OptionalComputerFormula_2026.pdf

Texas 2026 SUTA Electronic Filing Update

In early 2026, The Texas Workforce Commission (TWC) is transitioning to a new consolidated Texas Unemployment Insurance (UI) System, TxUS. The new file specifications for TxUS are available on the TWC website. Please note these specifications are for the new system only, which will launch in 2026.

 

Employer ICESA Updates

Record	Existing ICESA	TxUS ICESA	Changes
A	Included	Included	Loc 2-5 Year – removed, replaced with filler Loc 15-18 Taxing Entity Code – removed, replaced with filler Loc 208-247 Submitter Email address – added Loc 214 C-3 Data Indicator – removed Loc 243-250 C-3 Media Creation Date – removed
B	Included	Removed	Record removed
E	Included	Included	Loc 173-187 9-digit Employer ID – expanded field length (previously Loc 173-181) Loc 182-187 NAICS Code – removed
S	Included	Included	Loc 92-105 State QTR Unemployment Insurance Taxable Wages – removed, replaced with filler Loc 147-161 Employer ID – expanded field length (previously Loc 147-155) Loc 172-176 Unit/Division Location/Plant Code (Unit Number) – removed, replaced with filler Loc 233-247 Out of State Quarterly Unemployment Insurance Taxable Wages – added Loc 248-249 Out of State Wage State Code – added Loc 250-251 Amendment Reason – added
T	Included	Included	Loc 9-12 Taxing Entity Code – removed, replaced with filler Loc 41-54 Total Excess Wages – required (previously blank) Loc 82-87 Reporting Period – added (previously UI Tax Rate This Quarter) Loc 88-100 State QTR U.I. Taxes Due – removed, replaced with filler Loc 248-250 County Code – removed, replaced with filler Loc 251-257 Outside County Employees – removed, replaced with filler
F	Included	Included	Loc 22-25 Taxing Entity Code – removed, replaced with filler Loc 71-85 Quarterly State U.I. Taxable Wages in File – removed, replaced with filler

 

Note: According to the TWC website, the wage file specifications are subject to change.

For more information, see the TWC Employer’s Guide to Wage Report and Payment File Specifications: https://www.twc.texas.gov/sites/default/files/ui/docs/txus-wage-report-and-and-payment-file-specifications-twc.pdf

Utah 2026 Tax Updates

The updates for Utah are effective immediately:

• The tax rate decreases from 4.5% to 4.45%.

• The base allowance used in the formulas increases:

  • Single employees: from $450 to $485.

  • Married employees: from $900 to $970.

• The amounts subtracted from wages in the formulas increases:

  • Single employees: from $9,107 to $9,348.

  • Married employees: from $18,213 to $18,696.

 

Vermont Q2 2026 SUTA Electronic Filing

 

The ICESA file format has the following updates:

• Code A loc 141-153: Original or Amended indicator – added (new field)

• Code A loc 208-213: Authorization Code – leave blank (not zero-filled)

• Code A loc 243-250: Field name renamed from “Tape Creation Date” to “File Creation Date”

• Code E loc 173-179: VT Employer Account Number must have preceding zeros if it is less than 7 digits

• Code S loc 155-161: VT Employer Account Number must have preceding zeros if it is less than 7 digits

• Code S loc 235-238: Total Hours Worked description updated from “Total hours paid. For hourly workers only” to “Total hours worked during reporting quarter” (now applies to all employees; based on hours worked, not paid)

• Code S loc 239-244: Hourly Wage – field removed and replaced with filler

• Code C loc 2-8: VT Employer Account Number must have preceding zeros if it is less than 7 digits

• Code C loc 113: Field meaning updated from “Business change in ownership” to “Out of Business”

For more information, see the Vermont Department of Labor Specifications and Instructions for 3^rd Party Quarterly Wage & Contribution Report: https://labor.vermont.gov/sites/labor/files/documents/ICESA%20Specifications.pdf

 

West Virginia 2026 Tax Update

The update for West Virginia, effective immediately, is the percentage method withholding table rates decrease from a range of 2.22%–4.82% to 2.11%–4.58%.

For more information, see the West Virginia Tax Division 2026 Income Tax Rate Cut: https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx

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