2022 Form 1099-MISC

The following are the changes to the 1099-MISC form. The new form is effective for tax year 2022 and has a filing date of January 31, 2023:

• A new box with calendar year fill-in has been added at the top of the form.

• The FATCA filing requirement checkbox has been moved to Box 13. Fields that were in Boxes 13-17 have been moved to Boxes 14-18.

• The 2nd TIN not. box has been moved under the FATCA filing requirement box. 

• The Account number box has been lowered, to align with 2nd TIN not.

Here's the new 1099-MISC form, with new/updated fields highlighted:

Vantagepoint has been updated to reflect these changes on the form. In addition, the following modifications were made to the 1099-MISC tab of the Form 1099 Editor, to be consistent with the field descriptions on the 1099-MISC form:

• PAYER'S federal ID number has been renamed to PAYER'S TIN.

• RECIPIENT'S ID number has been renamed to RECIPIENT'S TIN.

2022 Form 1099-NEC

A new box with calendar year fill-in has been added at the top of the 1099-NEC form. The new form is effective for tax year 2022 and has a filing date of January 31, 2023:

Vantagepoint has been updated to reflect this change on the form. In addition, the following modifications were made to the 1099-NEC tab of the Form 1099 Editor, to be consistent with the field descriptions on the 1099-NEC form:

• PAYER'S federal ID number has been renamed to PAYER'S TIN.

• RECIPIENT'S ID number has been renamed to RECIPIENT'S TIN.

2023 Social Security Wage Base

The Social Security (Old-Age, Survivors, and Disability Insurance) taxable wage base increases from $147,000 to $160,200 for 2023. For more information, see: https://www.ssa.gov/news/press/factsheets/colafacts2023.pdf.

Arizona 2023 Tax Updates

The updates for Arizona are effective January 1, 2023:

• The Form A-4 rate range decreases from 0.8% to 5.1% to 0.5% to 3.5%.

• The tax rate decreases from 2.7% to 2% if an employee does not submit Form A-4.

For more information, see the Arizona Withholding Percentage Election: https://azdor.gov/forms/withholding-forms/arizona-withholding-percentage-election.

California 2023 Tax Updates

The updates for California are effective January 1, 2023:

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

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

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

• The tax rates used in Method B continue to range from 1.1% to 14.63%.

Iowa 2023 Tax Updates

The following updates for Iowa are effective January 1, 2023:

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

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

For details on how much to withhold for Iowa individual income tax for wages paid starting January 1, 2023, use Steps 1 - 4 in this document: https://tax.iowa.gov/sites/default/files/2022-11/IAWithholdingFormulaAndInstructionsTY2023.pdf. 

Kentucky 2023 Tax Updates

The updates for Kentucky are effective January 1, 2023: 

• The standard deduction increases from $2,770 to $2,980.

• The state tax rate decreases from 5% to 4.5% of taxable income.

For more information, see the 2023 Kentucky Withholding Tax Formula: https://revenue.ky.gov/Software-Developer/PublishingImages/Pages/default/2023_42A003(T)(12-22)(2023).pdf.pdf. 

Maine 2023 Tax Updates

Maine's updated withholding methods and other changes include the following:

• The value of a state allowance increases from $4,450 to $4,700.

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

• The standard deduction decreases 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 have been adjusted.

For more information, see the 2023 Withholding Tables: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/23_wh_tab_instr.pdf. 

Minnesota 2023 Tax Updates

Updates for Minnesota include the following: 

• The value of a state allowance increases from $4,450 to $4,800.

• The formula's tax brackets have been adjusted, while tax rates continue to range from 5.35% to 9.85%.

For more information, see the Withholding Computer Formula: https://www.revenue.state.mn.us/sites/default/files/2022-11/wh_inst_23_0.pdf. 

Missouri 2023 Tax Updates

Updates for Missouri include the following:

• Tax rates used by the withholding formula now range from 0 to 4.95%, instead of the previous range of 1.5% to 5.3%. The flat tax rate for supplemental payments is also 4.95%.

• The state's standard deductions increase for the following statuses:

  • Married and Spouse Does Not Work: From $25,900 to $27,700 

  • Head of Household: From $19,400 to $20,800

  • Other Filing Statuses: From $12,950 to $13,850

For more information, see: https://dor.mo.gov/forms/4282_2023.pdf. 

Montana 2023 Tax Updates

The updates for Montana are effective January 1, 2023:

• The value of a state allowance increases from $1,900 to $2,070.

• The tax brackets have been adjusted.

For more information, see the Montana Withholding Tax Guide: https://mtrevenue.gov/publications/withholding-tax-guide-with-montana-withholding-tax-tables/. 

Nebraska 2023 Tax Updates

Effective January 1, 2023, the annual income tax withholding allowance increases from $2,080 to $2,140.

The Nebraska Department of Revenue (DOR) has also updated the 2023 Nebraska Circular EN with corrections to Tables 6 and 7 (semiannual and annual payroll periods):

For more information, see the 2023 Nebraska Circular EN: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/2023_Circular_EN_8-429r2023_Whole_Book_4.pdf.

New York State 2023 Tax Updates

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

Single

Married

For more information, see: https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys_123.pdf.

South Carolina 2023 Tax Updates

The updates for South Carolina are effective January 1, 2023:

• The number of tax brackets used in the formula has decreased from 6 (with rates ranging from 0.2% to 7%) to 3, with rates of 0%, 3%, and 6.5%.

• The value of a state allowance increases from $2,750 to $4,310.

• The maximum standard deduction increases from $4,580 to $6,475.

For more information, see the 2023 South Carolina Withholding Tax Formula: https://dor.sc.gov/forms-site/Forms/WH1603F_2023.pdf. 

The state has also released the 2023 Form SC W-4, South Carolina Employee’s Withholding Allowance Certificate: https://dor.sc.gov/forms-site/Forms/SCW4_2023.pdf.

Washington 2022 SUTA Electronic Filing: Updated ICESA File Format

The ICESA Washington Bulk Format Specification document has been updated with corrections to the field name and description of record T, column 186-196.

Revised (September 2022)

Field Name	Field Description	Column	Length	Type	Format
Amendable Amount	Amount remitted for this quarterly report. If amended, use the difference (positive or negative) between the original total amount due and the amended total amount due.	186-196	11	Numeric	Right justify, zero fill. Do not enter decimal. Assumes 2-digit decimal.

Previous (June 2022)

Field Name	Field Description	Column	Length	Type	Format
Adjustment Amount	If amended, use the difference (positive or negative) between the original total amount due and the amended total amount due.	186-196	11	Numeric	Right justify, zero fill. Do not enter decimal. Assumes 2-digit decimal.

 

Note the following changes, in different records:

• In multiple records:

  • ESD Numbers are now 12 digits long.

• In the employee record:

  • Columns 46-63 are now blank.

  • Columns 106-107 are for indicating the reason for an employee having wages but zero hours.

  • Columns 108-113 are for providing the six-digit SOC code corresponding to the employee's occupation.

  • Columns 136-137 are for indicating the reason for amending employee wage record.

  • Columns 171-209 are for reporting out of state wages.

• Exempt corporate officers:

  • S record position 210 will now be blank (since corporate exempt officers will not be reported in the S record).

• In the total record:

  • Columns 201-216 are for the adjustment credit indicator and amount for amendment filing only.

• In the final record:

  • Columns 159-178 are for the adjustment credit indicator and amount for amendment filing only.

Also note that starting with the fourth quarter of 2022, all employers are required to report SOC (Standard Occupational Classification) codes.

For more information, see the following references:

• ICESA Filing: https://esd.wa.gov/employer-taxes/EAMS-bulk-filing 

• ICESA Q3 2022 Specifications: https://media.esd.wa.gov/esdwa/Default/ESDWAGOV/employer-Taxes/EAMS_Bulk_Filing_Spec_watermarked.pdf 

• SOC Codes: https://esd.wa.gov/employer-taxes/about-soc

Defect 1846683: On the Firms form in the Firms hub, when you entered a firm in the search field, multiple instances of the firm displayed in the search results list.

Defect 1732810: When you displayed an overhead project in Project Review, the indirect expenses were not displayed under the Budgeted Billing column on the Financials tab.