TRAXPayrollAnnouncements Tax & Administrative UpdatesTax Updates - ID, KY, MA, MN, NJ, OH, PA, VT, WV (10/1/2019)

Tax Updates - ID, KY, MA, MN, NJ, OH, PA, VT, WV (10/1/2019)


Idaho

  • Updated the tax table for annual payroll period based on the 27 June 2019 Idaho Table for

    Percentage Computation Method of Withholding. Only the annual percentages have changed; the annual withholding allowances have not.

Kentucky

  • Hazard - OLF was returning a rate of 0.5% from a TaxIDListRequest, but was using a rate of 1.25% for a PayCalcRequest. The TaxIDListRequest now also returns 1.25%. The TaxIDListRequest was returning the rate only used for income above $60,000. Hazard license fees quarterly and annually are: 1.25% up to $60,000, and 0.5% above $60,000.
  • The OLF rate for Camargo, KY, has increased from 1% to 2%, effective 1 July 2019. This tax is assessed on residents and nonresidents that perform work in Camargo.

Massachusetts

  • Effective 1 October 2019, the "Massachusetts Paid Family and Medical Leave - Employer" contribution rate will increase to 0.75% (from 0.63%) to match the "Massachusetts Paid Family and Medical Leave - Employee" increase in the 2019-R7 release (STE-2152). This rate of 0.75% will be comprised of 0.62% from the medical leave contribution and 0.13% from the family leave contribution. This can change if an employer has fewer than 25 employees; in that case, the employer is not required to pay toward the medical leave contribution and the medical leave contribution becomes 0.248% for the employee.

Minnesota

  • Updated the Minnesota withholding tax tables, effective 1 January 2019. The withholding allowance remains the same at $4,250, but the dollar amounts have changed for all the Single and Married brackets. The percentage that the result is multiplied by, as well as the additional amount, have also changed in some cases.


New Jersey

  • Jersey City employers with a quarterly gross payroll less than $2,500 are exempt from payroll tax, effective 1 January 2019.
  • Employer contributions to a Roth 401(k) are now correctly considered not taxable for the following New Jersey tax types: SDI, ER_SDI, SUI, ER_SUTA, ER_SUTA_SC, FLI, SIT.

Ohio

  • This new tax rate is 1% for residents only, effective 1 January 2020. The tax will expire (unless renewed) on 31 December 2024.
  • The tax credit (credit factor) has increased to 100% (from 50%), effective 1 January 2019. The tax rate itself has not changed from 1.85%.
  • Etna-Reynoldsburg JEDD 3 was introduced in 2019-R9 as issue STE-2383, but the effective date was incorrectly returned as 25 September 2018. This has been corrected to 21 August 2018. The tax rate of 2%, the credit factor (tax credit) of 0%, and the credit rate (credit limit) of 0% have not changed. This date has been confirmed by Ohio's Regional Income Tax Agency.
  • The credit factor (tax credit) for Bentleyville, Cuyahoga County, Ohio, has decreased to 12.50% from 25.00%, effective 1 July 2019. The tax rate has not changed from 1% and the credit rate (credit limit) has not changed from 1%.
  • The Milford JEDD VI Tax has been added to the database with a tax rate of 1% for residents and
  • non-residents. The effective date is 1 August 2019.
  • Three taxes have been added to the database for the Etna-Reynoldsburg Joint Economic Development Districts: Etna-Reynoldsburg JEDD 1 Tax (39-000-0000-JEDD-119), Etna- Reynoldsburg JEDD 2 Tax (39-000-0000-JEDD-120), and Etna-Reynoldsburg JEDD 3 Tax (39-000- 0000-JEDD-121).
  • A new city tax has been added for Bridgeport, Belmont County, Ohio. The tax rate is: 1.00%, effective 1 August 2019. 
  • The tax rate has increased to 2.00% from 1.8%, effective 1 January 2017. The tax credit has changed to 90% from 100%, and the credit limit has changed to 2% from 1.8%. But due to the way that the STE handles tax credits and credit limits, the calculation in the STE remains effectively identical (90% of 2% is the same as 100% of 1.8%).

  • Corrected the tax credit from 100% to 50%, effective 1 January 2019. The tax rate and credit limit were both correct and are unchanged.
  • The OLF rate for Jeffersonville, KY, has increased from 1% to 2%, effective 1 July 2019. This tax is assessed on residents and nonresidents that perform work in Jeffersonville.
  • There is no Credit Factor (Tax Credit). There is no Credit Rate (Credit Limit)
  • The OLF rate for Martin County, KY, has increased from 1% to 2%, effective 1 July 2019. This tax is assessed on residents and nonresidents that perform work in Martin County.
  • Mount Healthy Springfield Twp Hamilton Cnty JEDD Tax. The tax rate has been updated to 2% from 1.5%. The credit factor (tax credit) has been set to 100% and the credit rate (credit limit) has been set to 1.6%.

Pennsylvania

  • Lumber City Borough became part of Ferguson Township, Curwensville Area School District, Clearfield County, effective 1 Jan. 2014. 
  • Riegelsville Borough is no longer divided between Easton and Palisades School Districts and now is solely within the Palisades School District, effective 1 Jan. 2013. PSD Code 480301 has been inactivated.
  • Strausstown Borough merged with Upper Tulpehocken Township, Hamburg Area School District, Berks County, effective 1 Jan. 2016. 
  • Corrected the EIT rate for Brush Valley Township, United School District, Indiana County, Pennsylvania. The rate is 1.35%, not 1%.
  • Disabled the inactive EIT of Barnesboro, Borough of - EIT - Northern Cambria S D (114503) in the database. This EIT has been inactive since 2000, but the effective date has been listed as 1 July 2019 to remain consistent with the audit of our database and the Pennsylvania Official Register.
  • Disabled the inactive EIT of Spangler, Borough of - EIT - Northern Cambria S D (114503) in
  • the database. This EIT has been inactive since 2000, but the effective date has been listed as 1 July 2019 to remain consistent with our audit of our database and the Pennsylvania Official Register.
  • Disabled the inactive EIT of Temple, Borough of - EIT - Muhlenberg S D (065503) in the database. This EIT has been inactive since 1999, but the effective date has been listed as 1 July  2019 to remain consistent with our audit of our database and the Pennsylvania Official Register.
  • Disabled the inactive EIT of West Lawn, Borough of - EIT - Wilson S D (069103) in the database. This EIT has been inactive since 2006, but the effective date has been listed as 1 July 2019 to remain consistent with our audit of our database and the Pennsylvania Official Register.
  • The municipal non-resident EIT rate for Allegheny Township, Hollidaysburg Area School District, Westmoreland County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal LST for Conemaugh Township, Conemaugh Valley School District, Cambria County, has increased from $5 to $47, effective 1 July 2019. The school district LST remains unchanged at $5, so the total annual LST returned by the STE is $52. The original version of these release notes did not clarify the difference between municipal and total LST.
  • The municipal non-resident EIT rate for Cross Roads Borough, South Eastern School District, York County, has increased from 0.50% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal LST for Dushore Borough, Sullivan County School District, Sullivan County, has decreased from $10 to $0, effective 1 July 2019. The school district LST is also $0, so the total annual LST returned by the STE is $0. The original version of these release notes did not clarify the difference between municipal and total LST.
  • The municipal non-resident EIT rate for East Deer Township, Deer Lakes School District, Allegheny County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Huston Township, Spring Cove School District, Blair County, has increased from 0.50% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Kimmel Township, Claysburg-Kimmel School District, Bedford County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Liberty Township, Fairfield Area School District, Adams County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Loganville Borough, Dallastown Area School District, York County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Martinsburg Borough, Spring Cove School District, Blair County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Mount Wolf Borough, Northeastern York School District, York County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for North Hopewell Township, Red Lion Area School District, York County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for Shrewsbury Township, Southern York County School District, York County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The school district LST rate for Union Township, North Schuylkill School District, Schuylkill County, has increased from $5 to $10, effective 1 July 2019. The municipal LST remains $0, so the total annual LST returned by the STE is $10. The original version of these release notes did not clarify the difference between school district and total LST.
  • The municipal LST for Washington Township, Pine Grove Area School District, Schuylkill County, has increased from $5 to $10, effective 1 July 2019. The school district LST remains $5, so the total annual LST returned by the STE is $15. The original version of these release notes did not clarify the difference between municipal and total LST.
  • The municipal non-resident EIT rate for Wrightsville Borough, Eastern York School District, York County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The municipal non-resident EIT rate for York Springs Borough, Bermudian Springs School District, Adams County, has increased from 0% to 1%, effective 1 July 2019. The effective date is based on the comparison of the Official Register (effective 1 July 2019) against our database, not the potential earlier date of the tax rate change.
  • The Patterson Township municipal nonresident EIT has decreased to 0% (from 0.5%). The municipal resident EIT remains unchanged at 0.5%, and the school district EIT remains unchanged at 0.5%. Total EIT returned by the STE is the municipal EIT plus the school district EIT.

Vermont

  • The tax tables for Virginia have been updated. The only change from this that affects STE calculations is the standard deduction for All Returns - Single, which has increased to $4,500.
  • The healthcare contribution rate has changed to $167.02. The Vermont Department of Taxes has retroactively decreased the 2019 contribution amount to $167.02 from $168.10. Currently the effective date for this change is listed in the STE database as 31 March 2019, but this will be corrected to an effective date of 1 January 2019 in the upcoming 2019-R10 release on 22 August 2019. This is based on this table from the Healthcare Contributions Worksheet (VT Form HC-1).
  • Corrected the effective date for this tax from 31 March 2019 to 1 January 2019. The healthcare contribution rate remains $167.02.

West Virginia

  • The Madison city service fee will increase to $3.00 per employee per calendar week (from $1.25) for both resident and non resident employees, effective 1 January 2020. Please note, this is a tax based on where the employee works, and not where they live. Employees only pay the city service fee once per week if they have multiple employers. They do not owe the fee for every job and employer they have.
  • Added a new tax of $1.00 per week, effective 1 July 2019, on non-resident employees (employees who work in the City of Montgomery but who do not live in the City of Montgomery). Resident employees (who both live and work in the City of Montgomery) are exempt from this tax because they already pay a police and municipal services tax. Effective 1 July 2020, the tax will increase to $1.50 per week. Effective 1 July 2021, the tax will increase to $2.00 per week.