Federal Income Tax Withholding 2024 Updates

Here are the updates for federal income tax withholding effective January 1, 2024:

• The annual additional amount for a nonresident alien employee, who was first paid wages before 2020 and has not submitted a Form W-4 for 2020 or later, increases from $9,550 to $10,300.

• The annual additional amount for a nonresident alien employee, who has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later, increases from $13,850 to $14,600.

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

Alabama Overtime Pay Exemption Updates

Beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage-paid employee for hours worked above 40 in any given week is excluded from gross income and, therefore, exempt from Alabama state income tax. This exemption requires employer reporting to ALDOR--employers must report the total aggregate amount of overtime paid and the total number of employees who received overtime pay.

For more information, see the Knowledge Base Article: New Alabama Overtime Pay Exemption effective 1/1/2024 through 6/30/2025.

Colorado 2024 Tax Updates

The updates for Colorado are effective January 1, 2024:

• The standard amount for employees with a federal filing status of married filing jointly or qualifying widow or widower increases from $9,000 to $10,000.

• The standard amount for all other filing statuses increases from $4,500 to $5,000.

For more information, see the Colorado Withholding Worksheet for Employers: https://tax.colorado.gov/sites/tax/files/documents/DR1098_2023.pdf

Connecticut 2024 Tax Updates

The updates for Connecticut are effective January 1, 2024:

• The two lowest tax rates in the withholding calculation rules for all withholding codes were decreased from 3% and 5% to 2% and 4.5%.

• The Phase-Out Add-Back tax rates were decreased from 3% to 2%.

• The Tax Recapture table has been updated.

Florida Reemployment Tax Electronic Filing

The updates for the Reemployment Tax XML Package are:

• For the name, address, and title fields, the pattern [ -)|+-ÿ]+ is replaced with ([A-Za-z0-9'\-] ?)[ -)|+-ÿ]+

• Refer to the RT_changes.xlsx file in the Reemployment Tax XML Package for all the changes from version 1.2.

• The Reemployment Tax XML Package (ZIP archive) includes the XML schema, XPath, guide, and test files for Forms RT-6 and RT-8A: https://floridarevenue.com/taxes/Documents/flRtXmlPkg.zip

For more information, see the Software Developer Information and Specifications webpage: https://floridarevenue.com/taxes/eservices/Pages/developerinfo.aspx

Georgia 2024 Tax Updates

The updates for Georgia are effective January 1, 2024:

• The 2024 withholding method uses a flat rate of 5.49%.

• The graduated tax rates used for supplemental payments are mostly unchanged, but the highest rate decreases from 5.75% to 5.49%.

• The personal allowance that depends on filing status has been removed.

• The standard deduction amount increases for the following statuses:

  • Married Filing Joint Return: From $7,100 to $24,000

  • Single or Head of Household: From $5,400 to $12,000

  • Married Filing Separate Return: From $3,550 to $12,000

For more information, see: https://dor.georgia.gov/employers-tax-guide

Illinois 2024 Tax Update

Effective January 1, 2024, the value of state allowance increases from $2,425 to $2,775.

Indiana 2024 Tax Updates

The updates for Indiana are effective January 1, 2024:

• The state rate decreases from 3.15% to 3.05%.

• The employer is not required to withhold state or country income tax on some employees if the employee will work in Indiana for 30 days or less during the taxable year.

For more information, see the Indiana Department of Revenue Departmental Notice #1: https://www.in.gov/dor/files/dn01.pdf

Iowa 2024 Tax Updates

The updates for Iowa are effective January 1, 2024:

• The withholding formula decreases from four tax brackets to three tax brackets of 4.4%, 4.82%, and 5.7%.

• The state standard deduction increases from $13,850 to $14,600 or $27,700 to $29,200 annually, depending on the state allowances claimed.

• The state allowances are represented as dollar values.  

For more information, see the Iowa Withholding Formula Instruction 2024:
https://tax.iowa.gov/sites/default/files/2023-12/IowaWithholdingFormulaInstructions2024.pdf

 

Missouri 2024 Tax Updates

The updates for Missouri are effective January 1, 2024:

• The withholding formula tax rate range decreases from 0% to 4.95% to 0% to 4.8%.

• The state supplemental tax rate decreases from 4.95% to 4.8%.

• The state standard deduction increases for all filing statuses.   

 

For more information, see the 2024 Missouri Withholding Tax Formula: https://dor.mo.gov/forms/Withholding%20Formula_2024.pdf

Montana 2024 Tax Updates

The updates for Montana are effective January 1, 2024:

• The supplemental tax rate decreases from 6% to 5%.

• Employees are required to use the same filing status they use for federal purposes.

• There are new tax brackets.

Filing Statuses

The possible filing statuses on the MW-4 are as follows:

• Single or married filing separately

• Married filing jointly with both spouses working

• Married filing jointly or qualifying widower

• Head of household

Beginning January 1, 2024, employees should complete a new Form MW-4 to ensure that the correct amount of Montana income tax is withheld from their wages. For more information, see https://mtrevenue.gov/wp-content/uploads/dlm_uploads/2023/11/MW-4-2.pdf

Montana Withholding Formula

The Montana withholding formula is calculated as follows:

W = A + (B × (G – C))

G = Gross earnings for the payroll period

W = Withholding tax for the payroll period

All amounts to be withheld must be rounded up to the nearest dollar.

For more information, see the Montana Employer and Information Agent Guide: https://mtrevenue.gov/wp-content/uploads/dlm_uploads/2023/11/Employer_and_Information_Agent_Guide.pdf

Nebraska 2024 Tax Updates

The updates for Nebraska are effective January 1, 2024:

• The annual state allowance increases from $2,140 to $2,250.

• The annual one income tax withholding allowance is $2,250.

  • If this calculation is less than 1.5% of the taxable wage amount, adjust the income tax withholding to be at least 50% or more of the income tax withholding for a single employee with one income tax withholding allowance, or for a married employee with two allowances. These amounts meet the minimum income tax withholding requirement and may be used by the employer to determine an acceptable employee’s state income tax withholding amount.   

• The percentage method tables have been updated.

  • To use the percentage method, start with the taxable wage amount for the payroll period. Subtract the value of any income tax withholding allowances. Deduct the result from the taxable wages before using the percentage method tables. 

• Nebraska Income Tax Withholding Percentage Method Tables (for wages paid on or after January 1, 2024.): The appropriate income tax withholding allowance value must first be subtracted from the wage amounts before using these tables.           

For more information, see the 2024 Nebraska Circular EN: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/business/Cir_En_2023/2024cir_en_whole.pdf

New New Mexico 2024 Tax Update

Effective January 1, 2024, the tax brackets have been adjusted. To use the Withholding Tax Tables, determine the amount to withhold from the appropriate tax tables, based on the payroll period and the employee’s filing status.

North Carolina 2024 Tax Updates

The updates for North Carolina, effective January 1, 2024 are:

Tax Table Updates

• The rate used for withholding decreases from 4.85% to 4.6%.

• The supplemental tax rate decreases from 4.85% to 4.6%.

For more information, see the 2024 Income tax Withholding Tables and Instructions for Employers: https://www.ncdor.gov/tax-forms/2024-nc-30/open

SUTA Electronic Filing 

There are new and updated file formats to be used in the new system (NCSUITS) beginning in Q4. NCSUITS (North Carolina State Unemployment Insurance Tax System) is a new, modernized system to administer North Carolina’s unemployment insurance tax program.

• If you choose to upload wage files, you can now use one of three file formats – ICESA, EWF2, or CSV (comma-separated values) – to upload wage files and make online payments.

• The Wage File Upload feature in NCSUITS confirms and processes the incoming file, calculates taxes and other amounts due, and creates a confirmation number. With that confirmation number, you can submit online payments. Agents can submit payments for multiple clients through the Manual Payment Allocation feature or by uploading a payment allocation file.

• The ICESA format is changing. ICESA file(s) should have a file extension of .txt and a record length of 275.

  • Only one record type ‘A’ in the file. The ‘A’ record will contain information about who is submitting the file.

  • Only one record type ‘E’ in the file.  The ‘E’ record should contain information about the employer for whom the report is being submitted. The Employer ID and FEIN in the file must match the Employer ID and FEIN on the account logged into when uploading the file.

  • Multiple type ‘S’ records in the file that contain SSN for employee(s), names and wages for the reporting quarter. (One record per employee)

  • Only one record type ‘T’ in the file. The ‘T’ record should contain the totals for all record type ‘S’ records reported for the employer.

  • Only one record type ‘F’ in the file. The ‘F’ record shows the end of the file and must be the last data record on each file submitted.

• The EFW2 is the former MMREF format with changes. EFW2 file should have a file extension of .efw and a records length of 512.

  • Only one record type ‘RA’ in the file. The ‘RA’ record will contain information about who is submitting the file.

  • Only one record type ‘RE’ in the file.  The ‘RE’ record should contain information about the employer for whom the report is being submitted. The Employer ID and FEIN in the file must match the Employer ID and FEIN on the account logged into when uploading the file.

  • Multiple type ‘RW’ records in the file that contain SSN for employee(s), names and wages for the reporting quarter.  (One record per employee)

  • Only one record type ‘RT’ record in the file. The ‘RT’ record should contain the totals for all record type ‘S’ records reported for the employer.

  • Only one record type ‘RF’ in the file. The ‘RF’ shows the end of the file and must be the last data record on each file submitted.

• The CSV format is a new file format used to transmit the Quarterly Tax and Wage report. The CSV file should have a file extension of .csv, and you should make sure that all defined columns are populated. 

  • The order of the records should be type 0, type 1, type 2, type 3.

  • You can create the CSV file using commercially available spreadsheet software (for example, Microsoft Excel). 

  • Employers can file original or amended wage reports in this file format; however, each file should contain only information for one quarter.

• DES format will no longer be accepted once NCSUITS is launched.

• Agents and employers should begin using NCSUITS on November 13, and use it to file reports for the 4th Quarter that are due on Jan. 31, 2024. 

For more information, see the Employer’s Guide to Wage Report and Payment File Specifications guidance document: https://www.des.nc.gov/documents/files/suits-wage-report-and-payment-file-specification/open

Oklahoma 2024 Tax Updates

The updates for Oklahoma are effective January 1, 2024:

• The value of the state allowance remains $1,000.

• The top tax bracket increases for married employees.

Rhode Island 2024 Tax Updates

The updates for Rhode Island are effective January 1, 2024:

• The brackets used in the percentage method have been adjusted.

• The annual wage threshold above which the state allowance is zero increases from $260,550 to $274,650.

For more information, see the Rhode Island’s Employer’s Income Tax Withholding Tables: https://tax.ri.gov/sites/g/files/xkgbur541/files/2023-12/2024%20Withholding%20Tax%20Booklet.pdf

Vermont 2024 Tax Updates

The updates for Vermont are effective January 1, 2024:

• The state allowance increases from $4,850 to $5,100.

• The tax brackets used in the percentage method have been adjusted.

For more information, see the Vermont 2024 Income Tax Withholding Instructions, Tables, and Charts: https://tax.vermont.gov/sites/tax/files/documents/GB-1210-2024.pdf

Performance Enhancements for Project and Project Detail Dashpart Bases

Changes to the underlying logic of dashparts with the Project and Project Detail dashpart bases improve how data is processed and displayed. These enhancements are more noticeable when the affected dashparts contain large datasets.

Defect 2022164: This issue occurred in Interactive Billing or Batch Billing when you opened the Email Invoice dialog box to enter settings for sending invoices via email. On the dialog box, when you set the Select Attendees From option to Project Roles, Supervisor was missing from the Project Roles grid.

Defect 2054051: On the Interactive Billing form, when you used the Download for Editing action, the invoice number on the second page of the downloaded invoice showed as <Draft> instead of the assigned invoice number.

Defect 2064022: On the Labor tab, some billing transactions did not display in the Labor grid. When you clicked Other Actions » Print, however, the report showed the missing transactions. This issue occurred for billing transactions that belonged to projects with project numbers that contained 'LD.'

Defect 2067388: On the Accounting tab, the Cost Rate Table field displayed None instead of the correct information. This issue occurred when you used the employee search to display an employee record.

Defect 2033964: For overhead projects, the job-to-date (JTD) values were not calculated correctly on the Budget Worksheet report.

Defect 2060902: When you tried to view invoice details, you received this error message: "Cannot resolve the collation conflict between "SQL_Latin1_General_CP1_CI_AS" and "Latin1_General_CI_AS" in the equal to operation."

Defect 2062089: When you previewed an invoice in Hubs » Projects » Invoices, you received a "500 Internal Error" message. This issue occurred when you voided the original invoice and created a new invoice with the same number.

Defect 2060297: If the Resource Planning module was not installed on the database and you entered planned values on the Expenses or Consultants tab of the Plan form, those values disappeared when you navigated to another field.

Defect 2052164: This issue occurred for projects in which the Stage option was not set to Awarded and the Won/Lost Date field was locked. When you set the Stage option to Awarded and completed the Won/Lost Reason field, the Won/Lost Date disappeared.

Defect 2058724: This issue occurred in dashparts with the AR Aging dashpart base that included the AR Comment column. The dashpart did not display the expected data if one of the comments in the AR Comment column contained a special character, such as single or double quotation marks ( ' or " ).

Defect 2057060: When you printed a Detail Expense Report, the signature displayed a timestamp of 1/1/1900. This issue occurred if expense report approvals were not in use and you had not completed the Submitted by and Submitted date fields.

Defect 2016136: This issue occurred in the User Defined Summary report when you updated columns in the User Defined Section grid of the Options tab. When you saved your updates, Vantagepoint removed some fields that contained existing values from the report.

Defect 2034730: On the Timesheets form, the Total column in the right grid section did not display the overall total for prepopulated holiday hours.

Defect 2058836: If the Unit of Measure and Quantity fields were hidden in the Line Items grid on the Line Items tab of the Purchase Orders form, Vantagepoint was unable to validate whether or not the fields were required and you received the following error message: “String or binary data would be truncated. The statement has been terminated.”

Defect 2050272: When you tried to preview a supporting document on a purchase order created from a purchase requisition, you received the following error message: "File Not Found."

Defect 2061166: On the Grid Settings dialog box, when you set Show Projects to No you received the following error message: "The given key was not present in the dictionary."

Defect 2060041: In Resource View, negative hours were incorrectly displayed for a resource.

Defect 2039247: In the Detailed Transactions section of the Options form, when you manually entered a wildcard in the Non-Billable Labor Code field, you received the following error message: "__ is invalid. The correct format is XX.X." In addition, on the Labor Code Lookup dialog box, the Wildcard option was missing in the Non-Billable Labor Code field.

Defect 1923221: When you saved a copied role, you received this error message: "GridID is required." The error message displayed even if you entered a role name that was different from that of the original role.

Defect 1995229: This issue occurred in user initiated workflows for contacts when you added a Create Activity action. On the Activities dialog box, you were unable to select the current firms with which the contact is associated because the Special Selections sub menu for the Primary Firm field was not displayed.

Defect 2060360: This issue occurred in Mobile Time and Expense when you added an expense line with a travel expense category. When you entered the kilometer or mile value and then immediately tapped Done on the Travel Detail screen, the calculated value did not display in the Amount field.

Defect 2035675: This issue occurred in multicompany databases when you displayed the AP Invoice Approvals form in list view. When you clicked the drop-down list of the AP Liability field to filter records, the liability codes did not display and you received a "No results were found" message.

Defect 1991429: This issue occurred when an employee's status was marked inactive in the Employees hub. To search for and access the employee’s record on the Timesheets form in the Transaction Center, you had to use the Search option instead of entering the name in the Employee field.

Defect 2015979: When importing overhead or promotional projects to Vantagepoint, you encountered issues when you completed the following steps:

1. In Utilities » Desktop Imports (in the desktop application), you imported overhead or promotional projects but did not select the Probability field on the Text Field Mappings tab. When you ran the Project List report, the Probability column displayed a value of 100 for each imported project.

2. In Hubs » Projects » Project, when you tried to add a task or phase to an imported project, you received an error message.

Defect 2059282: On the Import Utility form, when you ran the Desktop Import process for the Expense Budget table, you received the following error message: "Ambiguous column name 'StartDate. Ambiguous column name 'EndDate'". This issue occurred when you selected the Allow Update checkbox on the Main tab of the Import Utility form.