December 2025

Please Note: This article contains both upcoming features and recently released functionality. Each item is clearly marked as either "Coming Soon" or "Live" so you can easily identify what's currently available in your system.

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Tracking for Qualified Overtime Premium (Live)

What is the improvement?

In order to assist in tracking qualified overtime for the W2, we have added two Transaction Type Groups: Reg and OT. Reg will automatically include the Avionte supplied Reg Transaction Type and OT will automatically include the Avionte Supplied OT/DT Transaction Types.

Why?

Creating these groups allows us to know which transactions are classified as hours worked as well as what is being used for regular pay and overtime pay.  These groups assist in the calculation of qualified overtime for reporting at year and.  

How does this impact you?

To ensure correct setup, your admin user should go to Admin Tools > Transaction Type Groups and identify any regular and overtime pay codes being used.  

DRM For Hours Worked (Live)

What is the improvement?

The system now provides improved overtime calculation flexibility with the ability to indicate which transaction types are "hours worked" and should therefore be included in overtime calculations. Building on this enhanced flexibility, the system now provides notifications for time entries that may need overtime review. When a time entry batch shows both total hours worked and regular hours exceeding 40 hours, you'll receive a DRM alert at batch close. The alert defaults to severe (blocking) but can be configured as a warning based on your workflow preferences.

Why?

This refined alert helps you catch situations where overtime may not have been applied as expected. By flagging these batches proactively, you have better visibility into potential discrepancies and can make any needed adjustments during your normal review process.

How does this impact you?

The DRM is automatically enabled and requires no setup. If the alert triggers, simply review the flagged transactions to confirm overtime is calculated as intended, then proceed with the batch. If you prefer to adjust the alert level (severe vs. warning) to better fit your workflow, you can modify it using your standard DRM management settings.

Minnesota - Payroll Tax Calculation: Paid Family Medical Leave (Live)

Improvement: 

Paid Family Medical Leave Setup for Minnesota

Key Updates:

1. Configuration UI: Users can access the Paid Family Medical Leave (PFML) configuration for Minnesota via: Admin Tools > Employer > Supplier > Locality/Country > State MN.
2. Contribution Requirements:

• Contributions begin on January 1, 2026.
• Contribution rates for calendar years 2026-2027:
• Standard Employer and Employee Split:
  • Employers are responsible for paying at least 50% of the total contribution rate (0.44% of the employee's wages).
  • Employees pay the remaining 50% (0.44% of their wages).
  • Employers should have the option to pay a larger share or cover the entire contribution if they choose.
• Small Employers (Fewer than 30 Employees) and Employee Split:
  • Smaller employers are still required to contribute but may qualify for reduced contribution rates of .66% or financial assistance.
  • Employer pays at least .22% and employee pays up to .44%
• Equivalent Plan:
  • Employers can seek out equivalent plans through an insurance carrier and/or self-insured policy.
  • The total rate may exceed the .88% that is available via the state program, which means we must allow employer to set their rate.
  • Should this occur, they need the ability to set the employee contribution percentage as well, not to exceed .44% of wages.
  • Example: Employer could purchase private plan with a cost of 1.2% of wages.  Employee could pay up to .44%, which means employer contribution would be .76%
• W2 Impact: Box 14 label: MNPFML - both EE contributions and employer pick up contributions.
   

Resources

• MN DEED Employers / Minnesota Paid Leave
• MN DEED Adopted Expedited Permanent Rules Regulating Paid Leave
• MN DEED Premium rate and contributions

How does this impact you?

This feature supports Minnesota employers in meeting their obligations for Paid Family Medical Leave, ensuring seamless integration with payroll systems and maintaining regulatory compliance.
 

KB Article: State Paid Family Medical Leave Acts

Allocated Tips Standard Import Added (Live)

Improvement: Added a new standard import for importing allocated tips, which will appear in Box 8 of the W2.

Key Updates:

• Under import export, there will now be a new option named Allocated Tips, which will be visible as long as the user has the correct permissions for this import. It will include the following fields: 
  • Supplier
  • Year
  • EmployeeID
  • SSN
  • EmployeeName
  • Box 8 Allocated Tips Amount

How does this impact you?

• This import can be used to bring the required information for Box 8 directly into your system.

ADP Quarter 4 File Format Updates for ADP Employment Tax Integration (Live)

Improvement: Avionte Classic's ADP Employment Tax Integration has been updated to comply with ADP's latest file format specifications for Quarter 4 2025 reporting. These updates ensure accurate submission of quarterly payroll data and resolve validation errors that previously occurred when submitting ADP tax files.

Key Updates:

How does this impact you?

When you generate your Q4 2025 ADP quarterly file, the system will automatically apply these formatting updates. 

Maine PFML 2025 W2 Requirement Updated (Live)

Improvement: Updated the way Maine PFML is calculated and displayed on the W-2 to be in compliance for 2025.

Key Updates:

• Employee premium contributions in Maine will now automatically be listed under Box 14 of the W-2 form with the label “ME PFML" if present.
   

How does this impact you?

• ME PFML can now be correctly added to the W-2 to be in compliance for 2025.

New Tax Reporting: Qualified Tips and Overtime Premium Reports (Live)

Improvement: Two new reports have been added to help you provide accurate wage information to employees for tax reporting purposes.

Key Updates:

• OBBB Qualified Tips Report: Generate detailed information about all paid tip wages for employees over a specific time period. Filter by date range and transaction types, and choose between a detailed view with job information or a simplified summary view. Learn more about the Qualified Tips Report.
• OBBB Qualified Overtime Premium Report: Generate information about overtime wages paid throughout the year. Filter by company (FEIN), employee SSN, date range, and specific pay code types, with options to view either detailed or summary information. Learn more about the Qualified Overtime Premium Report.

How does this impact you?

• You can now easily track and summarize tip and overtime premium transactions by employee, providing accurate wage information for tax and income verification purposes.

Sick Pay Accruals Hierarchy Updated (Live)

Improvement: Updated the way sick pay is accrued so that cities will now supersede county plans and state plans, while county plans will supersede state plans based on assignment.

Key Updates:

• Hierarchy of sick pay accruals has been updated to be correct. Previously if a talent had worked in one city and then also worked in at least one additional city, it would not correctly use the city leave instead of the state. Similar issue with counties has also been changed.

How does this impact you?

• Sick pay accruals will now correctly calculate with the correct hierarchy of city > county > state.

FSA Limit Updates (Live)

Improvement: Updated the calculations used for FSA Limits

Key Updates:

• Limit for annual contributions for Healthcare Flex Savings Accounts (FSA) in 2026 is an increase to a limit of $3,400 (vs. the 2025 limit of $3,300)
   
• Healthcare FSA rollover maximum limit in 2026 is $680 (vs. the 2025 limit of $660)
   
• Confirmed - Dependent Care Flexible Savings Accounts (DCFSAs) is an increase to $7,500 for married individuals (and $3,750 for married filing separately)

How does this impact you?

• FSA limits are now compliant for 2026

Transaction Types Added for Tips (Live)

Improvement: Added two new transaction types, "Is Cash Tips," and "Is Credit Card Tips."

Key Updates:

• When setting up transaction types, you will now see two additional options for different types of tips, cash and credit card, and these can be tracked directly from your system.
  • Cash Tips
    • Included in taxable wages
    • Amount is not included in Net Pay (eliminating the need for creating a corresponding deduction)
    • Tax withholding is automatically suspended if it would result in negative net pay
  • Credit Card Tips
    • Included in taxable wages
    • Included in Net Pay calculation

How does this impact you?

• You can now easily track both cash and card tips at a transaction level, which will simplify and streamline reporting and the W2 process at end of year.

Action Required