Summary of Program Modifications 4.3.9
Logic now differentiates between taxable and non-taxable when calculating deductions across work locations. We now use only compensations that are taxable according to the taxability rules of the residence location when determining the deduction proration factor.
Social Security maximum wage base adjusted
Uses both regular and supplemental year-to-date wages to determine when the maximum wage base is reached.
Seattle Payroll Expense Tax added
Calculates the Seattle Payroll Expense Tax on employers.
The variable tax rate is based on these values for the current calendar year:
- The employer’s total estimated annual Seattle payroll and
- The employee’s total estimated annual Seattle payroll A business entity is subject to the tax in the current year only if their prior-year Seattle payroll was $7 million or greater.
Canada Self Adjust Method change
When year-to-date gross wages and tax amounts exceed the maximum tax deduction and wage-base limits, returns a negative wage and negative tax.
Summary of Program Modifications 4.3.8
District of Columbia Paid Family Leave
Calculates District of Columbia (DC) Paid Family Leave (PFL) withholding as expected:
- When the primary work location is DC, includes all wages in the primary work location in PFL withholding, but no wages from other work locations.
- When the primary work location is not the District of Columbia, does not calculate PFL withholding for DC.
Connecticut Paid Family and Medical Leave
Calculates Connecticut Paid Family and Medical Leave Act (PFMLA) withholding. The wage base is capped at the Social Security wage base.
Community Safety Payroll Tax for Eugene, Oregon
Supports the employer and employee Community Safety Payroll Tax (CSPT) for Eugene, Oregon.
Summary of Program Modifications 4.3.7
Families First Coronavirus Response Act (FFRCA) changes
To reflect changes that were created by the Families First Coronavirus Response Act (FFRCA), no longer uses the employer Social Security wages as a separate annual wage limit.
Now, when the employee Social Security wages meet the annual wage limit, the employer Social Security wages stop accumulating for the year and tax calculations cease.
Note: Railroad Tier I Employer Social Security tax is not affected by this change.
Compensation information fields
Updated to confirm that threshold and limit compensation values were assigned appropriately.
Summary of Program Modifications 4.3.6
State wages proration
State-level proration was adjusted to include supplemental wages in the calculation.
Supplemental values and work tax credits
Supplemental tax values are no longer returned when the current resident tax is reduced to zero by a work tax credit.
Washington State PFML changes
In Washington State, the calculation for Paid Family and Medical Leave (PFMLA) no longer separates the employee contribution into Family Leave and Medical Leave components.
Canadian employee CPP calculation
Canadian employee Canadian Pension Plan (CPP) contribution no longer calculates when there are no gross wages.
Kentucky local tax calculation
Kentucky local tax calculation no longer calculates a resident city tax in addition to the county tax for supplemental wages.
Louisville local tax calculation
Louisville School District tax now calculates as expected for multiple work locations when the primary work location is Louisville.