Friday, March 24th, 2023

Highlights

isolved version 9.05 includes updates to state and local taxes, third-party link name changes in Adaptive Employee Experience and an update to the Benefit Evaluation utility.

Adaptive Employee Experience

• Third-party link name changes in the Adaptive Employee Experience (AEX)

Benefits

• Benefit Evaluation utility updated to consider benefit plan status when using the Dependent Loss of Eligibility tool

Employee Self-Service and Onboarding

• Updated 2023 California withholding form (Spanish language version)

Payroll

• Vertex state and local tax updates

Adaptive Employee Experience

Third-party link name changes in AEX

OrgPlus Employee Directory and Insperity TimeStar links renamed

Clients taking advantage of the modern Adaptive Employee Experience and who use the AEX third-party links to easily access the OrgPlus Employee Directory or Insperity TimeStar products will notice the link names have changed. The OrgPlus Employee Directory link has been renamed Employee Directory and the Insperity TimeStar link is now Insperity Time & Attendance.

Benefits

Benefit Evaluation Utility update

Dependent Loss of Eligibility tool now considers benefit plan status

When running the Dependent Loss of Eligibility tool within the Benefit Evaluation utility, the “dependent loss of elig for benefit plan” option currently looks at the dependent’s eligibility on the date you run the evaluation regardless of the benefit plan status.  With this release, updates have been made to make the evaluation more accurate by considering the benefit plan status when determining dependent eligibility.  If a benefit plan status is:

• Active – the evaluation tool will continue to look at the dependent’s eligibility based on the date you run the evaluation
• Pending – the evaluation tool will now look at the plan start date, rather than the date you run the evaluation, to determine a dependent’s eligibility
• Historical – the evaluation tool will now look at the plan start date, rather than the date you run the evaluation, to determine a dependent’s eligibility

Employee Self-Service and Onboarding

Updated 2023 California withholding certificate in the Tax Wizard

Updates to ensure compliance with the 2023 state withholding form

Form DE 4(SP), the Spanish language version of California’s employee withholding certificate, has been updated to support 2023 requirements in the Tax Wizard within Onboarding and Tax Updates in Employee Self-Service in both Classic View and the modern Adaptive Employee Experience (AEX). 

Payroll

Vertex global tax changes

All tax changes are effective 1/1/23 unless otherwise noted.

Added period-to-date supplemental gross and tax capability to the Flat Rate withholding calculation for the following:

• 01-000-0000 Alabama
• 03-000-0000 Arizona
• 04-000-0000 Arkansas
• 06-000-0000 Colorado
• 13-000-0000 Idaho
• 14-000-0000 Illinois
• 15-000-0000 Indiana
• 16-000-0000 Iowa
• 17-000-0000 Kansas
• 20-000-0000 Maine
• 22-000-0000 Massachusetts
• 23-000-0000 Michigan
• 24-000-0000 Minnesota
• 25-000-0000 Mississippi
• 26-000-0000 Missouri
• 27-000-0000 Montana
• 28-000-0000 Nebraska
• 32-000-0000 New Mexico
• 33-000-0000 New York
• 34-000-0000 North Carolina
• 35-000-0000 North Dakota
• 36-000-0000 Ohio
• 37-000-0000 Oklahoma
• 38-000-0000 Oregon
• 39-000-0000 Pennsylvania
• 40-000-0000 Rhode Island
• 41-000-0000 South Carolina

Vertex state and local tax changes

  All tax changes are effective 1/1/23 unless otherwise noted. 

Alabama tax changes

Alabama made the following change to their state unemployment tax:

• Decreased the maximum employer SUI tax rate from 6.74% to 5.4%

 Alaska tax changes

Alaska made the following changes to their state unemployment tax:

• Increased the employee and employer SUI wage base from $45,200 to $47,100
• Decreased the employee SUI tax rate from .56% to .51%.

Arizona tax changes

Arizona made the following change to their state unemployment tax:

• Decreased the maximum employer SUI tax rate from 20.93% to 18.78%

Arkansas tax changes

Arkansas made the following change to their state unemployment tax:

• Decreased the SUI wage base from $10,000 to $7,000

Connecticut tax changes

Connecticut made the following change to their state unemployment tax:

• Decreased the maximum employer SUI tax rate from 6.8% to 6.6%

Delaware tax changes

Delaware made the following change to their state unemployment taxes:

• Decreased the wage base for SUI and SUI Employment Training Fund from 14,500 to 10,5000
• Increase the SUI Employment Training Fund rate from .11% to .15%

District of Columbia tax changes

The District of Columbia made the following tax changes:

• Changed the taxability of HSA Sec.125 (Deduction IDs – 36 and 37) for regular and supplemental wages from exempt to taxable for the following tax types:
  • SUI
  • SUI Administrative Funding Surtax
  • Paid Family Leave (PFL)
• Changed the taxability of HSA Catch Up Sec.125 (Deduction IDs – 38 and 39) for regular and supplemental wages from exempt to taxable for the following tax types:
  • SUI
  • SUI Administrative Funding Surtax
  • Paid Family Leave (PFL)

Georgia tax changes

Georgia made the following tax change:

• The SUI Administrative Assessment is not in effect for 2023

Hawaii tax changes

Hawaii made the following change to state unemployment taxes

• Increased the maximum employer SUI tax rate from 5.8% to 6.2%

Illinois tax changes

Illinois made the following change to their state withholding:

• Increased the Line 1 withholding allowance from $2,425 to $2,625
• Updated the state withholding tables

Indiana tax changes

Indiana made the following change to their state withholding:

• Decreased the withholding tax rate for regular and supplemental wages from 3.23% to 3.15%

Indiana made the following local tax changes:

• Indiana County Withholding is now broken into three separate Calculation Methods based on the Supplemental Method chosen. This is done to be uniform with the supported Calculation Methods for the State Withholding. Per the Departmental Notice 1, exemptions are to only be applied to Regular/Periodic Wages for both State and County Withholding.
  • Annualized for Regular Wages Only
  • Flat Rate Combined for Regular and Supplemental Wages
  • Flat Rate for Supplemental Wages Only

Kentucky tax changes

Kentucky made the following changes to local taxes:   

• Henderson, Henderson County (18-101-0370)
  • Increased the Occupational License Fee from 1.49% to 1.65%
• Kenton County (18-117-0000)
  • Increased the annual maximum tax from $375.74 to $816.54
  • The Tier 1 limit was increased from $25,000 to $80,1000
  • The Tier 2 limit is the remaining wages to the Social Security wage base of $160,200
• Union, Boone County (18-015-1272)
  • Changed the start date of the Occupational License Fee of 2% with an annual maximum tax of $3,204 to 7-1-23. Note: Due to software delays, the City of Union has declared a Payroll Tax holiday for the first two quarters of 2023.

Maine tax changes

Maine made the following changes to their state unemployment:

• Decreased the maximum employer SUI tax rate from 6.16% to 5.47%
• Increased the SUI Unemployment Program Administrative Fund tax rate from .14% to .15%

Maryland tax changes

Maryland made the following changes to their state and local taxes:

• Increased the minimum standard deduction from $1,600 to $1,700
• Increased the maximum standard deduction from $2,400 to $2,550
• Revised withholding tables and combined state and local supplemental tax rates for the following counties:
  • Cecil County
  • St. Mary’s County

Massachusetts tax changes

Massachusetts made the following changes to their PMFL tax:

• Added an Override Max Wage base to MA PFML Flat Rate and Self Adjust calculation methods

Massachusetts made the following changes to their state unemployment:

• Increased the SUI COVID-19 Recovery Assessment maximum tax rate from 1.796% to 10.896%

Michigan tax changes

Michigan made the following change to their state unemployment taxes:

• Changed the SUI taxability of the following deductions for regular and supplemental wages from exempt to taxable:
  • HSA Sec. 125 (Deduction IDs – 36 and 37)
  • HSA Catch Up Sec. 125 (Deduction IDs – 38 and 39)

Minnesota tax changes

Minnesota made the following change to their state unemployment tax:

• Increased the maximum employer SUI tax rate from 8.9% to 9%

Minnesota made the following changes to their state withholding:

• Increased the withholding allowance amount from $4,450 to $4,800
• Revised the state withholding tables

Mississippi tax changes

Mississippi made the following changes to their state withholding:

• Updated the state withholding tax tables

North Carolina tax changes

North Carolina made the following changes to their state withholding:

• Decreased the withholding tax rate for regular and supplemental wages from 5.09% to 4.85%

North Carolina made the following change to state unemployment:

• Increased the SUI wage base from $28,000 to $29,600

North Dakota tax changes

North Dakota made the following change to their state withholding:

• Updated the state withholding tables

Ohio tax changes

Ohio made the following local tax changes:

• Arlington LSD (3202)
  • Increased the tax rate from 1.25% to 1.75%. The following jurisdictions are affected:
    • Arlington, Hancock County 36-063-5175
    • Eagle Township, Hancock County 36-063-0311
    • Jackson Township, Hancock County 36-063-0312
    • Madison Township, Hancock County 36-063-0313
    • Van Buren Township, Hancock County 36-063-0318
• Cloverleaf LSD (5204)
  • Decreased the tax rate from 1.25% to 1%. The following jurisdictions are affected:
    • Chatham Township, Medina County 36-103-0209
    • Chippewa Lake, Medina County 36-103-5418
    • Gloria Glens Park, Medina County 36-103-5419
    • Guilford Township, Medina County 36-103-0894
    • Harrisville Township, Medina County 36-103-0205
    • Lafayette Township, Medina County 36-103-0211
    • Lodi, Medina County 36-103-5424
    • Medina, Medina 36-103-1540
    • Rittman, Medina 36-103-2150
    • Seville, Medina County 36-103-3170
    • Westfield Center, Medina County 36-103-4594
    • Westfield Township, Medina County 36-03-0217
• Columbiana, Mahoning County (36-099-0560)
  • Added Columbiana with a tax rate of 1%.
  • Added a credit percentage of 100%
  • Added a credit limit of .5%
• Greenwich, Huron County (36-077-5253)
  • Eliminated the credit percentage of 100%
  • Eliminated the credit limit of 1%
• Lancaster, Fairfield County (36-045-1240)
  • Increased the tax rate from 2.2% to 2.3%
• Liberty Center JEDD, Henry County (36-069-7461)
  • Eliminated the tax rate of 1%
• Massillon JEDD, Stark County (36-151-0117)
  • Eliminated the tax rate of .3%
• Octa, Fayette County (36-047-5077)
  • Increased the credit percentage from 50% to 100%, effective 2-1-23.
  • Decreased the credit limit from 1% to .5%, effective 2-1-23
• Rittman, Medina County (36-103-2150)
  • Decreased the tax rate from 1.5% to 1%
• Rittman, Wayne County (36-169-2150)
  • Decreased the tax rate from 1.5% to 1%
• Somerset, Perry County (36-127-5581)
  • Added Somerset with a tax rate of 1%
• Pennsylvania Allentown City, Lehigh County (39-077-0040)
  • Added Parkland S.D. (39510) with a tax rate of .5%
• East Allen Township, Northampton County (39-095-1426)
  • Increased the municipal resident tax rate from .5% to .75%
  • The total resident tax rate is 1.45%: .75% municipality and .70% school district
• Kulpmont Boro, Northumberland County (39-097-1910)
  • Increased the Local Services Tax from $10.00 to $52.00
• London Grove Township, Chester County (39-029-0152)
  • Increased the municipal resident tax rate from .75% to 1%
  • The total resident tax rate is 1%: 1% municipality and 0% school district
  • Increased the non-resident tax rate from .625% to .75%

Oregon tax changes

Oregon made the following changes to their state unemployment taxes:

• Increase the wage base for the SUI and SUI Special Payroll Tax Offset from $47,700 to $50,900.
• Decreased the SUI Special Payroll Tax Offset tax rate from .12% to .09% effective 4/1/23.

Oregon made the following change to their state PFML tax:

• Added an override capability to maximum wage base for employee and employer PFML Self Adjust calculation methods.

Oregon made the following updates to state income taxes:

• Increased the standard deduction for Single filers from $2,420 to $2,605
• Increased the standard deduction for Single with 3 or more allowances and Married filers from $4,840 to $5,210
• Increased the allowance credit from $219 to $236
• Increased the maximum federal subtraction for Single and Married filers from $7,250 to $7,800
• Updated the federal tax phase-out amounts for wages in excess of $50,000
• Revised the state withholding tables

Oregon made the following change to local taxes:

• Metro Supportive Housing Services (SHS) – Greater Portland
  • Increased the standard deduction from $4,840 to $5,210
  • Updated the federal tax phase-out amounts
• Multnomah County (38-051-0000)
  • Multnomah County Preschool For All (PFA)
    • Increased the standard deduction from $4,840 to $5,210
    • Updated the federal tax phase-out amounts

Pennsylvania tax changes

Pennsylvania made the following changes to their state unemployment:

• Increased the maximum employer SUI tax rate from 9.9333% to 10.3734%
• Increased the employee rate on all wages from .06% to .07%

Pennsylvania made the following changes to local taxes:

• Allentown City, Lehigh County (39-077-0040)
  • Added Parkland S.D. (39510) with a tax rate of .5%
• Athens Boro, Bradford County (39-015-0160)
  • Added a Local Services Tax of $52.00
• Braddock Boro, Allegheny County (39-003-0400)
  • Increased the municipal resident tax rate from 1% to 1.05%.  The total resident tax rate is 1.55%:  1.05% municipality and .5% school district.
• Conneautville Boro, Crawford County (39-039-7864)
  • Increased the Local Services Tax from $10.00 to $52.00
• East Allen Township, Northampton County (39-095-1426)
  • Increased the municipal resident tax rate from .5% to .75%.  The total resident tax rate is 1.45%: .75% municipality and .70% school district
• Falls Township, Bucks County (39-017-1722)
  • Added a resident tax rate of 1%
  • Added a non-resident tax rate of 1%
• Greenfield Township, Erie County (39-049-2132)
  • Increased the non-resident tax rate from .5% to 1%
• Greenville Boro, Mercer County (39-085-1540)
  • Increased the municipal resident tax rate from 1% to 1.25%.  The total resident tax rate is 1.75%: 1.25% municipality and .5% school district.
• Kulpmont Boro, Northumberland County (39-097-1910)
  • Increased the Local Services Tax from $10.00 to $52.00
• Langhorne Boro, Bucks County (39-017-6460)
  • Added a resident tax rate of 1%
  • Added a non-resident tax rate of 1%.
• London Grove Township, Chester County (39-029-0152)
  • Increased the municipal resident tax rate from .75% to 1%.  The total resident tax rate is 1%: 1% municipality and 0% school district
  • Increased the non-resident tax rate from .625% to .75%
• Mifflin Township, Dauphin County (39-043-3454)
  • Increased the Local Services Tax from $10 to $52
• Narberth Boro, Montgomery County (39-091-2630)
  • Added a resident tax rate of .5%
  •  Added a non-resident tax rate of .5%
• New Castle City, Lawrence County (39-073-2680)
  • Increased the non-resident tax rate from 1.815% to 1.856%
• Plymouth Township, Montgomery County (39-091-4295)
  • Increased the municipal resident tax rate from .55% to .6%.  The total resident tax rate is 1.10%: .6% municipality and .5% school district.
• Robesonia Boro, Berks County (39-011-7444)
  • Increased the Local Services Tax from $10 to $52
• Tullytown Boro, Bucks County (39-017-7568)
  • Increased the Local Services Tax from $10 to $52
• Upper Saucon Township, Lehigh County (39-077-5523)
  • Increased the municipal resident tax rate from .5% to .6%.  The total resident tax rate is 1.1%: .6% municipality and .5% school district
• Upper Tulpehocken Twp, Berks County (39-011-5525)
  • Added a Local Services Tax of $52
• Washington Township, Dauphin County (39-043-5649)
  • Increased the Local Services Tax from $10 to $52
• West Grove Boro, Chester County (39-029-7741)
  • Added a Local Services Tax of $52
• Westtown Township, Chester County (39-029-01)
  • Increased the municipal resident tax rate from .5% to .54%.  The total resident tax rate is 1.04%: .54% municipality and .5% school district.
• Whitpain Township, Montgomery County (39-091-5911)
  • Increased the municipal resident tax rate from .5% to .56%.  The total resident tax rate is 1.06%: .6% municipality and .5% school district.
• Wilmington Township, Lawrence County (39-073-5943)
  • Increased the Local Services Tax from $10.00 to $52.00.

Rhode Island tax changes

Rhode Island made the following change to their state temporary disability tax:

• Increased the TDI wage base from $81,500.00 to $84,000.00.

Rhode Island made the following changes to their state unemployment tax:

• Increased the SUI Tier 1 wage base from $24,600 to $28,200
• Increased the SUI Tier 2 wage base from $26,100 to $29,700
• Increased the SUI Job Development Fund Tier 1 wage base from $24,600 to $28,200
• Increased the SUI Job Development Fund Tier 2 wage base from $26,100 to $29,700
• Decreased the maximum employer SUI tax rate from 9.59% to 9.49%

Texas tax changes

Texas made the following changes to their state unemployment:

• Decreased the maximum employer SUI tax rate from 6.31% to 6.23%
• The SUI Obligation Assessment is not in effect for 2023

Vermont tax changes

Vermont made the following changes to their state withholding:

• Updated the state withholding tables

Virginia tax changes

Virginia made the following change to their state unemployment tax:

• Increased the maximum employer SUI tax rate from 6.20% to 6.23%

Washington tax changes

Washington made the following changes to their state taxes:

• Added opt-out for the Washington Cares Fund, effective 7/1/23
• Added an Override Max Wage base to WA PFML Flat Rate and Self Adjust calculation methods

Washington made the following change to their local taxes:

• Redmond, King County (48-033-1010)
  • Increased the Business License Fee from $.063542 per hour to $.06875 per hour

West Virginia tax changes

West Virginia made the following local tax changes:

• Smithers, Fayette County (49-019-0904)
  • Added a City Service Fee of $.50 per week
• Smithers, Kanawha County (49-039-0904)
  • Added a City Service Fee of $.50 per week.

Wyoming tax changes

Wyoming made the following change to their state unemployment tax:

• Decreased the maximum employer SUI tax rate from 8.62% to 8.5%
• Decreased the SUI Employment Support Fund Factor tax rate from .14% to .06%

For more information about the changes in the version 9.05 release, contact your Payroll Specialist.

Download the release notes: isolved Product Release v9.05