Compliance Corner

Update:

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the Department of Labor’s final 2024 rule. Consequently, with regard to enforcement, the Department is applying the 2019 rule’s minimum salary level of $684 per week and total annual compensation requirement for highly compensated employees of $107,432 per year. Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision.

We will continue to update you as more information becomes available from the Department of Labor. Please see the following links from the DOL, and the PlanSource HCM article regarding the previous ruling.

DOL Earnings Threshold

HCM Federal Overtime Salary Posting

December Compliance Updates – 12/09

November UKG Pro Compliance Pack

UKG Compliance Pack

Maryland Pay Statement Updates

Beginning on October 1, 2024, employers are subject to new Wage Range Transparency and Pay Stub and Pay Statement laws. The Maryland Department of Labor has released guidance materials to help employers navigate these new requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Minnesota Secure Choice Retirement Program

The Minnesota legislature enacted the Minnesota Secure Choice Retirement Program in 2023 and further modified the requirements in the 2024 session. Under the law, an employer doing business in Minnesota is required to enroll its employees in the state administered retirement plan and begin payroll deductions for transmittal if the employer: (1) does not offer a retirement plan to its employees; and (2) has five or more employees. Payroll deductions will be deposited in an IRA in the name of each employee and invested with oversight by the State Board of Investment. This new requirement was slated to begin on Jan. 1, 2025. However, the Minnesota Legislative Commission on Pensions and Retirement recently issued an update stating that the Secure Choice Retirement Program will not be ready for enrollment until “mid-to late-2025.” Employers can track updates issued on the Minnesota legislature’s website, which is linked here.

FLSA Salary Thresholds

Effective Jan. 1, 2025, the salary threshold under the federal Fair Labor Standards Act (FLSA) will increase to $1,128 per week, $58,656 annually, for executive, administrative, and professional exemptions. This is a significant increase from the current salary threshold of $43,888 annually. Employers can reclassify employees making less than $58,656 annually to non-exempt or provide salary increases.

Pay Transparency

Employers with 30 or more employees at one or more sites in Minnesota must disclose applicable salaries and benefits in each job posting or advertisement on Jan. 1, 2025. The new law prohibits open-ended salary ranges and also requires a “general description of all of the benefits and other compensation, including but not limited to any health or retirement benefits” offered.

ESST Changes

As of Jan. 1, 2025, the same Minnesota Earned Sick and Safe Time (ESST) rules and protections will apply to any allotments of paid time off (PTO) when the time is used for an ESST-eligible purpose. This change is significant as many employers carefully crafted attendance policies to impose discipline once an employee used their ESST balance, regardless of whether the employee had other forms of PTO available. Further, most PTO policies expressly differentiate ESST advance notice and documentation requirements from vacation and/or PTO requirements. Aside from the exceptions provided in the statute, most PTO policies and practices will need to adhere to the ESST rules and protections when employees use the paid time for absences from work due to illness or injury.

Upcoming Webinar

Please join the upcoming webinar discussion on the practical and legal implications of these legislative changes. In addition to the Minnesota Secure Choice Retirement Program, pay transparency, and ESST, the webinar will also dive into important policy considerations for the upcoming Minnesota Paid Family Medical Leave Act. The webinar will be held at 11:30 a.m. CT on Nov. 4. Pending one hour of Minnesota CLE credit and SHRM credit.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Unemployment Insurance:

The taxable wage base in New York will be $12,800 for 2025, up $300 from the taxable wage base of $12,500 in 2024 (DOL Communication)

The Michigan Supreme Court has issued an order clarifying its July 31, 2024, opinion boosting the state’s minimum wage in 2025. The minimum hourly wage rate beginning Feb. 21, 2025, will be $10.00 plus the state treasurer’s inflation adjustment. Though exact figures don’t have to be finalized until Nov. 1, minimum wage is poised to increase from $10.33 an hour to $12.48 an hour beginning Feb. 21, 2025. It will increase on Feb. 21 each year after, rising to $13.29 in 2026, $14.16 in 2027 and $14.97 in 2028.

The state’s tipped minimum wage—which is currently $3.93 an hour and 38% of the of the standard minimum wage—will also increase each year and will be completely phased out in 2030, one year later than initially ordered. The tipped minimum wage will increase to 48% of the general minimum wage in 2025, and will increase to 60%, 70%, 80%, 90%, and finally 100% in the years following.

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For 2025, the Social Security wage cap will be $176,100, and social security and Supplemental Security Income (SSI) benefits will increase by 2.5 percent. These changes reflect cost-of-living adjustments to account for inflation.

Wage Cap for Social Security Tax. The Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and the employer. FICA tax has two components:

• a 6.2 percent social security tax, also known as old age, survivors, and disability insurance (OASDI); and

• a 1.45 percent Medicare tax, also known as hospital insurance (HI).

• For self-employed workers, the Self-Employment tax is 15.3 percent, consisting of:

• a 12.4 percent OASDI tax; and

• a 2.9 percent HI tax.

OASDI tax applies only up to a wage base, which includes most wages and self-employment income up to the annual wage cap.

For 2025, the wage base is $176,100. Thus, OASDI tax applies only to the taxpayer’s first $176,100 in wages or net earnings from self-employment. Taxpayers do not pay any OASDI tax on earnings that exceed $176,100.

There is no wage cap for HI tax.

Maximum Social Security Tax for 2025. For workers who earn $176,100 or more in 2025:

• an employee will pay a total of $10,918.20 in social security tax ($176,100 x 6.2 percent);

• the employer will pay the same amount; and

• a self-employed worker will pay a total of $21,836.40 in social security tax ($176,100 x 12.4 percent).

Additional Medicare Tax. Higher-income workers may have to pay an Additional Medicare tax of 0.9 percent. This tax applies to wages and self-employment income that exceed:

• $250,000 for married taxpayers who file a joint return;

• $125,000 for married taxpayers who file separate returns; and

• $200,000 for other taxpayers.

The annual wage cap does not affect the Additional Medicare tax.

Benefit Increase for 2025. Finally, a cost-of-living adjustment (COLA) will increase social security and SSI benefits for 2025 by 2.5 percent. The COLA is intended to ensure that inflation does not erode the purchasing power of these benefits (SSA Press Release, Social Security Announces 2.5 Percent Benefit Increase for 2025 , Social Security Fact Sheet, 2025 Social Security Changes)

Governor Ned Lamont has announced that beginning on January 1, 2025, Connecticut’s minimum wage will increase from the current rate of $15.69 per hour to $16.35 per hour.

The change is required under a state law Governor Lamont signed in 2019 (Public Act 19-4) that connects the state’s minimum wage to economic indicators, specifically the percentage change in the federal employment cost index. Under that law, the minimum wage is required to be adjusted each year based on the U.S. Department of Labor’s calculation of the employment cost index for the twelve-month period ending on June 30 of the preceding year. The commissioner of the Connecticut Department of Labor is required to review this percentage change and announce any necessary adjustments by October 15 of each year. Those adjustments must take effect on January 1 of the following year.

Compliance Updates – 08/23/2024

Employers must use the Form I-9 with the edition date of 08/1/23, which may have an expiration date of either 07/31/2026 or 05/31/2027. Either form may be used until its respective expiration date. Downloads available on the Form I-9 download page will only include the new 05/31/2027 expiration date.

Employers are encouraged to update their electronic Forms I-9 systems to use the 05/31/2027, expiration date as soon as possible and must do so no later than July 31, 2026, the expiration date on the previously-issued Form I-9. For more information, visit I-9 Central or join a free Form I-9 webinar.

Vermont released new versions of its publications providing specifications for electronic filing of the following forms:

• 1099 information returns (Pub. GB-1117);

• W-2 (Pub. GB-1118); and

• WHT-434, annual withholding reconciliation (Pub. GB-1119).

The revised publications note that January 31, 2025, is the due date for filing the 2024 Form WHT-434 and Forms W-2 and/or 1099

Effective from January 1, 2024, the GASIT – Georgia State Income Tax code withholding tables are updated per statutory requirements. The supplemental wage tax is now a flat tax, and the rate decreases 5.49% to 5.39%. For complete details, refer to the Georgia 2024 Employers Tax Guide (updated May 2024), available from the Georgia Department of Revenue. The tax withholding tables for regular wages were updated per Georgia Act 378 in the June 7, 2024, release

Effective from June 1, 2024, the UTSIT – Utah State Income Tax code withholding tables are updated per statutory requirements. For complete details, refer to Utah Publication 14, Withholding Tax Guide, available from the Utah State Tax Commission.
– Tax rate decreased from 4.65% to 4.55%
– Base allowance amount increased from $415 to $440 (single) and from $830 to $880 (married)
– Exemption amount increased from $8,371 to $8,826 (single) and from $16,742 to $17,652 (married)

On May 21, 2024, Governor Lamont signed into law new legislation that significantly expands Connecticut’s existing paid sick leave law by requiring that virtually all private employers in the state provide employees with paid sick leave no later than January 1, 2027.

Mandates Coverage by Almost All Private-Sector Employers

Under the existing paid sick leave law, employers that employ 50 or more individuals in Connecticut must provide up to 40 hours of paid sick leave annually to defined “service workers.” The new legislation significantly expands the reach of the law to impose the mandate on nearly every private-sector employer. The new requirements will be phased in over three years based on size of the workforce in Connecticut:

• Beginning January 1, 2025, the law will apply to employers with 25 or more employees;
• Beginning January 1, 2026, the law will apply to employers with 11 or more employees; and
• Beginning January 1, 2027, the law will apply to employers with at least one employee.

Expands Definition of Covered Employee

Currently, paid sick leave is limited to employees meeting the definition of “service worker,” which excludes per diem and temporary workers. Under the new legislation, all private-sector employees will be eligible to receive paid sick leave, including per diem or temporary workers, except for seasonal and certain unionized construction workers

Accelerates the Accrual Rate

Under the new measure, eligible employees will accrue 1 hour of paid sick leave for every 30 hours worked, instead of the current accrual of 1 hour for every 40 hours worked. Employers that already offer other paid leave, including vacation, personal days or PTO, under the same or better terms and conditions will be deemed to be in compliance with the new requirements.

Limitations on Required Documentation

Under current law, employers can request reasonable documentation if the employee uses paid sick leave for three or more consecutive workdays. By contrast, the new legislation prohibits employers from requiring any documentation that the employee took paid sick leave for a qualifying reason.

Additional Notice Requirements

Covered employers must continue displaying posters regarding paid sick leave. They will also be required to provide written notice to employees of their paid sick leave rights no later than January 1, 2025, or at the time of hire, whichever is later.

What Now?

Connecticut employers that previously were exempt from the law should note the date when they must begin providing paid sick leave to their employees. If necessary, employers should also revise leave policies and practices, educate employees on the paid sick leave law, and provide and post any relevant notices. Employers that already provide employees with paid sick leave should review policies and practices to ensure they comply with all of the elements of the new law, including but not limited to its accrual rate and its restriction on obtaining documentation of the reason for the leave.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Please reach out to the Service Team to request any modifications/updates to PTO policies, or for any additional questions at 407-447-3837 or via email: hcmservice@plansource.com

Kansas issued a notice discussing special session legislation that made changes, effective beginning with the 2024 tax year, to:

• personal income tax brackets and rates;

• the subtraction modification for Social Security benefits;

• the standard deduction for individuals; and

• personal exemptions

(Notice 24-08 , Kansas Department of Revenue, July 1, 2024).

Q2 UKG Compliance Pack

The Ohio Department of Taxation has issued new employer withholding tables effective from July 1, 2024. These tables reflect the income tax rate reductions enacted with House Bill 33, signed into law on July 4, 2023. Percentage and optional computer methods for calculating withholding as well as daily, weekly, biweekly, semi-monthly, and monthly tables are available below and on the Employer Withholding Tax webpage.

Ohio Percentage Method July 1, 2024

Ohio Optional Computer Formula July 1, 2024

Ohio Daily Tables July 1, 2024

Ohio Weekly Tables July 1, 2024

Ohio Biweekly Tables July 1, 2024

Ohio Semi-monthly Tables July 1, 2024

Ohio Monthly Tables July 1, 2024

Questions regarding the new employer withholding tables can be addressed by contacting Employment Tax

The Department of Labor finalized new overtime rules expanding overtime eligibility to an estimated 4 million employees starting July 1, 2024.

The new standard salary level for the Executive, Administrative, and Professional (EAP) exemption increases are:

• $35,568 ($684 per week), currently
• $43,888 ($844 per week), effective July 1, 2024
• $58,656 ($1,128 per week), effective January 1, 2025

The new Highly Compensated Employee (HCE) compensation increases are:

• $107,432 per year, currently
• $132,964 per year, effective July 1, 2024
• $151,164 per year, effective January 1, 2025

The standard salary level amounts are included in the HCE amounts. The salary and HCE compensation thresholds will be regularly updated every three years beginning July 1, 2027. The final overtime rule does not apply to U.S. territories.

California recently passed a law (SB-828) delaying a new minimum wage rate for health care workers until July 1, 2024. This one-month delay could result in overpayment if you activated pay codes in your UKG Pro® solution for the original effective date of June 1, 2024.

Action may be required! If you have health care workers in California, you can avoid overpayment by reverting to the previous wage codes (under System Configuration > Business Rules > Locations > Edit Location > Tax Information > Minimum Wage Jurisdiction) until the new effective date of July 1, 2024.

If you do not have CA health care employees or you did not change wage codes to meet the previous June 1 effective date, no action is required on your part.  

New York announced that it has updated its pass-through entity tax (PTET) guidance on a variety of topics, including:

• extensions;

• the PTET credit;

• the New York City PTET election;

• the New York City PTET credit; and

• calculating pass-through entity taxable income.

Frequently asked questions concerning elections, credits, calculations, and filings and notices have also been updated (Notice , New York Department of Taxation and Finance, June 3, 2024).

A Hawaii Department of Taxation announcement discusses Act 46 (H.B. 2404), Laws 2024, which increases the standard deduction amounts beginning in tax year 2024 and revises the individual income tax brackets beginning in tax year 2025. The Department notes that it will amend Form HW-4, Employee’s Withholding Allowance and Status Certificate, and Booklet A, Employer’s Tax Guide, later this year for tax years 2025 and beyond. It will not amend Form HW-4 and Booklet A for tax year 2024 (Announcement No. 2024-03 , Hawaii Department of Taxation, June 3, 2024).

To ensure your California Pay Data Reporting file meets the latest requirements, an update has been applied within UKG Pro to meet the Wednesday, May 8th state deadline.

The update will add three new columns to the data file:

• Number of employees that do not work remotely
• Number of remote employees located in California
• Number of remote employees not located in California

For accurate data file reporting for remote employees, administrators must select the “Working from Home” setting on the remote employees’ Income Tax page. The Working from Home functionality allows employers to designate that an employee works for a business located in one state, and the employee also performs their work from a remote location in another state. Employers can then assign State Unemployment Insurance (SUI), State Disability Insurance (SDI), and certain types of local tax types, if applicable, for either state.

Update to the limits for the Puerto Rico qualified retirement plan:

• Annual compensation limit increase from $333,000 to $345,000.
• Defined benefit dollar maximum increase from $66,000 to $69,000.
• Deferral limit for dual qualified plans and federal government retirement plans increase from $22,500 to $23,000.

Update for deferred compensation retirement plans 401A – 401A Pre Tax and 401AT – 401a Post Tax limits to $69,000, effective January 1, 2024.

Tax rate updates, effective January 1, 2024, for:

• Muldraugh City (KY216) local tax rate increase from 1% to 1.75%.
• Nortonville City (KY236) local tax rate increase from 1% to 1.5%.
• Lebanon Junction City (KY240) local tax rate increase from 1% to 1.5%.

Effective January 1, 2023, the Idaho taxable wage base amounts for Idaho Workforce Development Fund (IDWFD) increases from $46,500 to $49,900 per statutory requirements.

Note: PlanSource has run Tax Reconciliation to update wages and employer tax amounts for Q1, Q2 and payroll in Q3.

Before: When the system calculated pays for South Carolina employees subject to the state unemployment insurance (SUI) tax code SCSUIER – SE Unemployment Employer, in certain scenarios the tax credit for the linked SCCATER – SC Contingency Tax Employer state tax code was not calculated.

Now: The SCSUIER tax amounts include the wage credit for the linked South Carolina Contingency Tax.

Effective September 1, 2023, local minimum wage rates are updated for the Port Authority of New York per statutory requirements. The LaGuardia Airport (NYLAG) and John F. Kenndy Airport (NYJFK) local minimum wage rates increase from $18.00 to $19.00 and the maximum tip credit increases from $4.40 to $4.75.

Effective September 1, 2023, local minimum wage rates are updated for Newark Liberty International Airport (NJNEW) per statutory requirements. The local minimum wage rates increase from $18.00 to $19.00 and the maximum tip credit increases from $7.87 to $8.87.

Effective September 30, 2023, the minimum wage rate for the state of Florida (FLSIT) is increased from $11.00 to $12.00 per statutory requirements. The tipped wage also increases from $7.98 to $8.98 causing the tip credit to remain the same at $3.02.

Enhancement: A message displays to notify you after adding, editing, or importing employee addresses, there are tax codes without geographic identification and the user should review Smart Tax recommendations. The message displays when you enter an address with a location that does not have a geographic identification associated with it.

• Before: When viewing a tax code on the View/Change Taxes page (System Configuration > Business Rules > Taxes > select tax code), in certain scenarios the State field for U.S. tax codes listed an incorrect label reflecting another international state or region.

Now: The View/Change taxes page provides the correct state information as expected.

• To improve performance and reduce the load times of the Smart Pay Analytics Cards in the Payroll Overview page, the Smart Pay Analytics Cards now refresh only in the following conditions: After you complete any step in the payroll process from calculate through post, when you update preference thresholds or make changes to pays that impact the results of the cards, or automatically after 30 minutes. In addition, a new Refresh button has been added to the Analytics section that allows you to manually refresh the data displayed in the cards.
• The UKG Pro mobile app now allows employees, managers, and administrators to add, view, edit, and delete employee alternate phone numbers. Workflow approvals are respected. A system administrator must enable this feature from the Mobile App Access Rights, please contact the HCM Service Team if you would like this feature activated. Access rights for employees, managers, and administrator role types must be configured separately.

Before: When using the Import Tool (Administration > Integration Studio > Import Tool) with Smart Tax Search enabled (System Configuration > Taxes > Smart Tax Search) to update employee addresses in the state of Pennsylvania, in certain scenarios the local taxes were not added and the import results would return a warning message. The following business processes in the Import Tool were affected:
– Add Employee (new hire/rehire)
– Change Name, Address, or Telephone
– Employee Transfer

Now: When using the Import Tool with Smart Tax Search enabled, Pennsylvania local taxes are assigned as expected.

Please follow the highlighted link for Minimum Wage Updates, effective 07/01/2023.

• Effective January 1, 2022, a new earnings tax category, Social Security Taxable Only (SSUPD), is added. SSUPD is taxable for Social Security (SOC) taxes.
• Before: Smart Tax Search would suggest tax codes with a zero tax rate. Now, Smart Tax will not suggest tax codes with zero tax rates when an address is selected as expected.
• Before: When using the New Hire Wizard with the Smart Tax feature enabled, if the employee address was not completed, the system would progress to the next page after selecting Next in some cases. Now: The New Hire Wizard will not progress if the employee address is not completed, as expected.
• Before: When using the New Hire Wizard with the Smart Tax feature enabled, in some cases, if the employee address length was greater than 30 characters, an error would occur. Now: the new employee’s full address can be entered, and taxes get recommended as expected.

Effective July 1, 2023, the KY243 – Greenup County local tax code, located in the state of Kentucky, was updated to correct the description to Greenup City.

Philadelphia, Pennsylvania (PA100018) resident tax rate decrease from 3.79% to 3.75%, effective July 1, 2023.

An update will be applied to your UKG Pro solution on June 30, 2023, to reflect the applicable rate change and new resident rate of 3.75%. There is no change to the non-resident tax rate of 3.44%.

The New York metropolitan commuter transportation mobility tax (MCTMT) (NY006) code rate has increased from 0.34% to 0.60% for payroll expenses over $437,500, effective July 1, 2023, for employers conducting business in the five New York City counties: New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).

Effective January 1, 2023, the Idaho State Income Tax – IDSIT withholding tables were updated per statutory requirements. The supplemental tax rate decreased from 6% to 5.8% and the allowance amount increased from $3417 to $3534. Note: Retroactive withholding and payroll adjustments are not necessary. The Idaho State Tax Commission instructs employers to use the revised withholding tables going forward only.

• Effective January 1, 2023, the reciprocity credit calculation for the OH1131 – Convoy Village local tax code in Van Wert County, Ohio was updated per statutory requirements. Employees will be able to reconcile tax amounts with their annual filing with the Village of Convoy.
• Effective January 1, 2023, the OH1206 – Geneva local tax code in Ashtabula County, Ohio was updated per statutory requirements. The reciprocity limit is 1%. Employees can reconcile their withholding when they file their taxes.

New local tax codes for:

• Perry-Canton Faircrest JEDD, Stark County (OH2282), with a rate of 2.5%, effective March 9, 2023.
• Stockport Village, Morgan County (OH2283), with a rate of 1.0%, effective July 1, 2023.
• Warsaw Village, Coshocton County (OH2284), with a rate of 1.0%, effective July 1, 2023.

The Washington Cares Fund tax code (WACRFEE) was inactivated in 2022 when the legislation was being negotiated. An update has been applied so that the tax code is now available to be set up for companies and employees without calculating any wages or tax amounts until the code becomes effective on July 1, 2023.

• Effective February 1, 2023, the reciprocity credit calculation for the OH1554 – Wellington Village local tax code in Loraine County, Ohio was updated per statutory requirements. Employees will be able to reconcile tax amounts with their annual filing with the Village of Wellington.
• Effective March 15, 2023, the OH2275 – Marysville-Jerome Township JEDD local tax code in Union County, Ohio was added per statutory requirements with a tax rate of 1.5%.
• Effective January 1, 2023, the OH2276 – Valley View JEDD local tax code in Montgomery County, Ohio was added per statutory requirements with a tax rate of 1.5%.

Effective June 1, 2023, the UTSIT – Utah State Income Tax withholding tables were updated per statutory requirements. The tax rate decreases from 4.85% to 4.65%. For more information about the withholding tables, refer to the April 2023 revision of Utah Publication 14, Utah Withholding Information and Tax Tables.

• The Working From Home feature within your UKG Pro solution now supports the ability to identify employees as Working From Home and disable state reciprocity for a resident state. This update will also allow you to modify the unemployment and disability tax codes and eliminate the need to configure a work location for each employee. You can find this enhancement on the employee’s change state income tax page (under Menu > My Team > My Employees > Select Employee > Taxes > Income Tax).
• The Paid Family Medical Leave (PFML) feature within your UKG Pro solution will now be available for railroad employees located in New Jersey, New York, the District of Columbia, and Washington state.
• Update to support the withholding of supplemental wages when an employee receives more than $1 million of supplemental wages during a calendar year.

• The latest version of the Form W-4 for multiple states is available in your UKG Pro solution.
• The Spanish version of the Puerto Rico Form 499 R-4 is available in the UKG Pro solution.
• Multiple city and state minimum wage and wage base updates.
• Various tax table updates.
• An updater has been run to retroactively calculate the Federal Unemployment Tax Act (FUTA) credit reduction rate for the below state and territory amounts on paychecks from January 1, 2022, to date:
  • California from 0% to 0.3%
  • Connecticut from 0% to 0.3%
  • Illinois from 0% to 0.3%
  • New York from 0% to 0.3%
  • Virgin Islands from 3.3% to 3.6%

New earnings tax category SICRR “Sick Pay Railroad Employees,” effective January 1, 2022, added to support the Railroad Unemployment Insurance Act (RUIA).

• New tax codes, effective January 1, 2023, to help you comply with the Colorado Paid Family and Medical Leave regulation benefiting employees.
  • Colorado Family Medical Leave Employer Portion (COFMLER)
  • Colorado Family Medical Leave Employee Portion (COFMLEE)
  • Colorado Private Family Medical Leave Employer Portion (COPFMLER)
  • Colorado Private Family Medical Leave Employee Portion (COPFMLEE)

• Refer to the Colorado Family and Medical Leave Insurance (FAMLI) on information for how your organization will manage the reporting and filing of family leave taxes. If you have any additional questions on how this update can impact your organization, please reach out to the Service Team at 407-447-3837 or hcmservice@plansource.com

• An update to ensure accurate withholding calculation when deductions in line 2a of the Colorado Form DR 0004 are set to zero or blank.
• No action is required on your part; however, we recommend notifying impacted employees that Colorado state income tax (COSIT) may have been under- or over-withheld, and they could see a change in withholding moving forward. Employees can also reconcile any missed 2022 taxes when they file at the end of the year. If your organization is impacted, PlanSource HCM has contacted your year-end contact as of 12/05/2022.

New tax codes, effective January 1, 2023, to help you comply with the Oregon Paid Family and Medical Leave regulation benefiting employees:

• Oregon Family Medical Leave Employer Portion (ORFMLER)
• Oregon Family Medical Leave Employee Portion (ORFMLEE)
• Oregon Private Family Medical Leave Employer Portion (ORPFMLER)
• Oregon Private Family Medical Leave Employee Portion (ORPFMLEE)

Refer to the Paid Leave Oregon website, on information for how your organization will manage the reporting and filing of family leave taxes. If you have any additional questions on how this update can impact your organization, please reach out to the Service Team at 407-447-3837 or hcmservice@plansource.com

• New earnings tax category HWBPY “Healthcare Worker Bonus” has been added in support of the New York State Health Care Worker Bonus (HWB) program for 2022-2023, effective January 1, 2022.
• New York City 1127 Waiver Tax (NY1127) tax code added, effective January 1, 2023, to support New York City worker nonresident tax requirement. This is applicable only for employees who work within and for the City of New York.

Update to support the calculation of coefficient overtime wage premiums for non-exempt salary employees in the state of Pennsylvania.

Update to ensure correct regular and supplemental wage tax amount calculations for Oregon employees with the Metro Supportive Housing (OR009 and OR009M) and Multnomah Preschool (OR010) tax codes.

Utah state income tax (UTSIT) withholding tables update, effective May 1, 2022. For more information, refer to the Utah State Tax Commission Tax Bulletin 07-22 and Publication 14, Withholding Tax Guide.

Note: Employees can reconcile when they file their taxes at the end of the year.

Arkansas State Income Tax (ARSIT) withholding tables update to meet 2022 statutory limits, effective October 1, 2022.

Local tax rate updates, effective July 1, 2022, for:

• Shepherdsville, Bullitt County (KY153), increase from 1.5% to 2%
• Breathitt County (KY131) decrease from 1% to 0%

Note: Employees can reconcile when they file their taxes at the end of the year.

• Tax agent ID update for Tuscarawas Village, Tuscarawas County (OH1522), to Regional Income Tax Agency (RITA), effective July 1, 2022.
• Tax agent ID updates to RITA, effective October 1, 2022, for the following local tax codes:
  • Lincoln Heights, Hamilton County (OH1288)
  • Piqua, Miami County (OH1428)
  • South Amherst, Lorain County (OH1483)

California Pay Data Reporting file update to ensure it meets the latest requirements. On or after March 4, you can begin to generate your data file in the UKG Pro solution and submit it directly to the agency.

Owenton, Kentucky (KY173) tax table update from 1% to 1.5%, effective January 1, 2022.

A tax update will be applied to correct 2022 taxable wages and tax amounts for the Minnesota state unemployment insurance (SUI) assessment funds Minnesota Special Assessment Employer (MNTADER) and Minnesota Federal Loan Interest Assessment (MNFLAER). First quarter amounts will be corrected in time for quarter-end filing.

Note: No action is required on your part.

Local tax updates, effective January 1, 2022, including:

Tax agent ID change for Dresden Village, Muskingum County (OH1156) from Central Collection Agency (CCA) to null

New local tax codes with a rate of 2% for:

• Etna-Reynoldsburg JEDD 1 (Licking County), Ohio (OH2223)
• Etna-Reynoldsburg JEDD 2 (Licking County), Ohio (OH2224)
• Etna-Reynoldsburg JEDD 4 (Licking County), Ohio (OH2230)

Local tax codes inactivated per statutory requirements for:

• Reynoldsburg Enterprise Zone, Franklin County (OH2101)
• Reynoldsburg Enterprise Zone, Licking County (OH2102)

Note: Employers may elect to have checks reversed and reissued to correct any withheld tax for 2022 payrolls, or the employee can reconcile when they file their taxes at the end of the year. Employees previously subject to the Reynoldsburg Enterprise Zone taxes are subject to the tax for the City of Reynoldsburg, Franklin County (OH1442).

New local tax code reciprocity tax credit limits:

• Minerva, Stark County (OH1348), from 1.75% to 1.5%
• Minerva, Carroll County (OH2156), from 1.75% to 1.5%
• Minerva, Columbiana County (OH2157), from 1.75% to 1.5%
• Powell City, Delaware County (OH1436), from 0.25% to 2%
• West Lafayette, Coshocton County (OH1560), from null to 0.75%

The Employee Retention Tax deduction tax categories ERC “Qualified Wages for ERC” and ERCHB “ERC Paid Health Benefits” should no longer be used by any employers, effective December 31, 2021. If you’ve continued to use these categories past your organization’s eligibility date, please contact the HCM Service Team to request the checks be reversed and reissued.

New optional Colorado Withholding Certificate (DR 0004) form available for generation on the Add/Change Withholding Form (W-4) page.

Taxable wage base decrease from $16,500 to $14,500, effective January 1, 2022 for:

• • Delaware State Unemployment Insurance Employer (DESUIER) tax
  • Delaware Training Employer (DEETTER) tax

Tax rate increase for DEETTER from 0.095% to 0.11%, effective January 1, 2022.

Tax updates, effective January 1, 2022, for:

• Florence City, Boone County (KY010 & KY162) taxable wage base increase from $142,800 to $147,000 and a Social Security cap increase from $2,856 to $2,940.

• Wilder City, Campbell County (KY088) taxable wage base increase from $142,800 to $147,000 and a Social Security cap decrease from $3,570 to $3,307.50.

Riverside City, Montgomery County (OH1450) local tax rate increase from 0.015% to 0.025%, effective January 1, 2022.

New Castle (Lawrence County) non-resident earned income tax (EIT) decrease to 1.815%, effective January 1, 2022. The resident EIT rate remains unchanged at 2.075%.

The state governor recently signed amended legislation to delay implementation of the Washington Cares Fund Tax (WACRFEE) until July 1, 2023.

Action may be required:  If you elected to have employees taxed, you can request for these checks to be voided and reissued removing the tax and placing into a refundable deduction or tax code. Please reach out to the HCM Service Team to begin the process should this be needed.

Taxable wage base increase from $27,300 to $27,700, effective January 1, 2022, for the:

• Wyoming State Unemployment Insurance Employer (WYSUIER) tax
• Wyoming Employment Support Fund (WYESFER) tax

The Washington Cares Fund Tax (WACRFEE) will be updated as of January 20, 2022, with a rate of 0.58%.

Action may be required: We have marked all WACRFEE tax codes as “Not Subject to tax”.  At this time the rate will not be applied automatically until the Legislature gives further direction. If you would like to begin withholding this tax please contact the HCM Service Team.

New earnings tax category ADATU “Adoption Assistance Taxable Box 12 Update” added for federal income tax (FIT), Federal Unemployment Tax Act (FUTA), Medicare (MED), and Social Security taxes. Will report Box 12 – Code T of the Form W-2.

New earnings tax category SNTPA “3rd Party Non-Taxable No W2 Pennsylvania State Unemployment Insurance (PASUI) Exception” has been added.

For assistance configuring a new earning code please reach out to the HCM Service Team.

Local tax rate increases for:

• Cass County (IN053 and IN104) from 0.027% to 0.0295%
• Madison County (IN025 and IN026) from 0.0175% to 0.0225%
• Randolph County (IN084 and IN135) from 0.025% to 0.03%

The North Carolina state unemployment employer (NCSUIER) wage base limit increased from $26,000 to $28,000, effective January 1, 2022.

Local tax updates:

Local school district rate increases from 1% to 1.75% for:

• Preble-Shawnee SD, Preble County (OH1438)
• Preble-Shawnee SD, Butler County (OH1953)
• Preble-Shawnee SD, Montgomery County (OH1803)

New local school district tax codes for:

• Pike Delta York SD, Fulton County (OH2229) with a rate of 1%
• Sidney SD, Shelby County (OH2227) with a rate of 0.75%
• Sidney SD, Logan County (OH2228) with a rate of 0.75%

New local tax codes for:

• Lockington, Shelby County (OH2225) with a rate of 1%
• Nashville, Holmes County (OH2226) with a rate of 1%

Local tax rate increases for:

• Brimfield Tallmadge JEDD, Portage County (OH1822) from 1.5% to 1.75%
• Hilliard, Franklin County (OH1245) from 2% to 2.5%
• Powell, Delaware County (OH1436) from 0.75% to 2%

Rhode Island Disability (RISDIEE) contribution rate and wage base updates.

• The wage base limit increases from $74,000 to $81,500
• The tax rate decreases from 1.3% to 1.1%
• The cap amount decreases from $962.00 to $896.50

The Virgin Islands unemployment employer (VISUIER) taxable wage base limit decreased from $32,500 to $30,800, effective January 1, 2022.