Tax

State / Jurisdiction

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• Washington D.C.

Federal / All

Avionté Classic 2025 State Tax Forms 

Additional states have recently published revisions to their tax withholding certificates. Avionté has updated these new 2025 withholding forms in Classic E-documents for your use. These are effective January 1, 2025, and are available within the Avionté Classic Knowledge Base article for your reference. 

• Federal: W-4 
• Arizona: A-4   
• Colorado: DR 0004 
• Connecticut: Form CT-W4 
• Iowa: IA-W4 
• Minnesota: W-4MN   
• Missouri: MO W-4 
• New York: IT-2104 
• North Carolina: Form NC-4 
• Rhode Island:  RI W-4 

Avionté continues to monitor for additional tax form updates as they become available on the individual state revenue agency websites

Avionté BOLD 2025 Tax Forms 

The federal Form W-4 and additional states have updated their tax withholding certificates that are effective January 1, 2025. Changes are being made in Avionté BOLD to these Adobe form templates, and the new versions of these tax forms will soon be available within this Avionté Knowledge Base article. 
 

• Federal: W-4 
• Federal: W-4 (Spanish)  
• Minnesota: Form W-4MN 
• Missouri: Form MO W-4 
• New York: Form IT-2104 
• North Carolina: Form NC-4 
• North Carolina: Form NC-4EZ 
• Rhode Island: RI-W4   

Avionté continues to monitor for additional tax form updates as they become available on the individual state revenue agency websites. 

Year-End Updates to Generate ACA-related Reports 

Updates have been made to the ACA Companion logic in Avionté Classic to facilitate the generation of the 1095-C and 1094-C forms to comply with the Affordable Care Act (ACA). These forms can be found within the Reports preparation tab in Avionté's application. As referenced in our release notes, the Report Preparation tab populates the 1095-C and 1094-C information into these reports and updates them with Companion Application data. For details on the report layout, including a video tutorial, refer to our Knowledge Base article. 

Federal Unemployment Tax Credit Reductions Announced 

Under the Federal Unemployment Tax Act (FUTA), employers in states with outstanding advances for two or more consecutive years as of November 10 of the tax year are subject to a FUTA credit reduction. Employers in states with more extensive outstanding advances are subject to a tax penalty in addition to the credit reduction. California and New York had outstanding advances as of November 10, 2024, so employers in these states will have a reduced FUTA credit of 0.9% for 2024. The U.S. Virgin Islands (USVI) has maintained an outstanding advance since 2010, therefore USVI employers face a 4.2% credit reduction. See the U.S. Department of Labor site for more details. 

New 2025 IRS Health Plan Premium Affordability Threshold 

The affordability percentage for 2025 will increase to 9.02% of an employee's household income, according to the Internal Revenue Service (IRS) table of Required Contribution Percentages. In comparison, the 2024 plan year level is 8.39%. The Affordable Care Act (ACA) threshold determines eligibility for federally subsidized coverage from a public exchange and impacts employers' potential liability for play-or-pay assessments. Employers who anticipate they will meet the ACA's limit under the safe harbor provisions should review the new required contribution rate for coverage effective January 1, 2025. 

IRS Launches Eligibility Information Page for Employer-Provided Childcare Credit 

Employers may qualify for an annual tax credit of up to $150,000 to help cover a portion of facility, resource, and referral costs associated with providing child care services for their employees. For more information about claiming the credit and requirements for qualification, refer to the Employer-Provided Childcare Tax Credit page on the IRS.gov website. 

IRS Announces Employee Retention Tax Credit Voluntary Disclosure Program (ERC-VDP) 

A new program will assist employers who erroneously benefitted from the ERC. The ERC was part of the CARES Act, providing a refundable tax credit against employment taxes to offset the economic downturn during the pandemic. Employers who apply and qualify for the Voluntary Disclosure Program receive a discount on the repayment for credits mistakenly received and will not be subject to interest and penalties. Refer to the FAQ page on the IRS website for details and program application form. Deadline to participate in the program is March 22, 2024. 

Canada

Canada's TD1 Form Updates for 2025 Classic Edocuments 

Updates to TD1 (Personal Tax Credit Return) forms supported by Avionté for clients who operate in Canada have been completed. TD1 forms are completed by employees to help their employers know how much income tax should be deducted from their paycheck. TD1 forms for pay received on January 1, 2025 or later can be found in this Knowledge Base article.  
 

• Federal TD1 
• Alberta TD1AB  
• British Columbia TD1BC 
• Ontario TD1ON 
  
  

Employer Health Tax (EHT) Return - British Columbia 

Employers in British Columbia with remuneration exceeding the exemption threshold for the calendar year are required to register for the employer health tax based on the following tax rates and exemptions for 2024: 
 

• Exempt: Employers with B.C. remuneration of $1,000,000 or less. 
• Reduced Tax Rate: Employers with B.C. remuneration between $1,000,000.01 and $1,500,000 pay a reduced tax, calculated as: 
  • 5.85% x (B.C. remuneration - $1,000,000) 
• Standard Tax Rate: Employers with B.C. remuneration greater than $1,500,000 pay the standard tax, calculated as: 
  • 1.95% x total B.C. remuneration 

 
Avionté has made this update to ensure compliance with the latest employer health tax regulations. For further information, contact your Canadian tax authority. Additional configuration details within Avionté can be found in this Knowledge Base article and in our December 2024 Release Notes. 

Alabama

Alabama Overtime Exemption Update for W2 Reporting  

As mentioned in our release notes, Avionté Classic has been improved to update end-of-year report logic for Alabama exempt overtime wages. The overtime wages are mapped for reporting in Box 14 [item pay for AL standard OT/DT] for end-of-year reporting logic using the label of "EX OT WAGES." For more information on this compliance update, refer to Alabama's Reporting Guidance and FAQs. 

Vermont

Vermont Child Care Contribution Tax 

Effective 7/1/24, Vermont employees will have an additional payroll income tax for child care contributions. According to Act 76 of 2023, related to child care and early childhood education, the Department of Taxes will implement and administer a new Child Care Contribution (CCC). Vermont employers will be required to pay a 0.44% payroll tax on all employee wages earned, and employers may deduct and withhold a maximum of 25% of the required contribution (i.e., 0.11%) from employee wages. This tax will be used to fund investments in Vermont's child care system. More details can be found in this tax guide.  

Washington D.C.

D.C. Updates Tax Rate for Paid Family Leave 

The District of Columbia increased its Paid Family Leave (PFL) tax rate from 0.26% to 0.75% of paid wages for each covered employee as of July 1, 2024. The first payment at the new 0.75% rate for wages reported during the third quarter of 2024 (July 1, 2024 through September 30, 2024) is due October 31, 2024.  For more information, visit the DC Paid Family Leave website. 

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