Payroll Tax Updates

Florida announces interest rate for first half of 2025.

The Georgia Department of Revenue has announced that Clay County will impose a 1% special purpose local option sales tax (SPLOST), effective January 1, 2025. This will increase the total sales tax rate in Clay County to 8%.

Illinois updates film tax credit rules & expands homestead exemption for WWII veterans. New law removes statute of limitations for property tax certificate of error.

Colorado updates eligibility documents for the veteran with disability exemption.

The Minnesota Supreme Court ruled that rebate amounts paid by a wholesale drug distributor to customers are not included in the distributor's "gross revenues" for the Wholesale Drug Distributor Tax, as the distributor was contractually obligated to pay these rebates.

Utah tax changes: Workers' comp tax down to 1.2%, E-911 fees reduced, new MIDA tax, Scipio & Sterling sales tax up to 6.65%, transient room tax added, new sales tax locations.

Alabama updates tax rules: Overtime pay exemption for hourly workers, new guidance on contractor taxes, and exemption for agricultural fencing. Durable medical equipment purchases now require exemption certificates. 2025 Severe Weather Preparedness Sales Tax Holiday is Feb 21-23.

The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024, effective December 1, 2024.

The District of Columbia has made permanent changes to its downtown housing tax abatement program, including extending the certificate of occupancy deadline to 24 months and requiring a competitive process for awarding abatements.

Georgia's highest court upheld a 1% assessment on adult entertainment establishments, finding it content-neutral and addressing secondary effects. The court also reversed a summary judgment against a taxpayer claiming a tax refund, holding that the trial court should have treated the taxpayer's claims as true.

The County of Maui has extended the deadline for filing a claim for a home exemption or long-term rental exemption for property owners who are leasing their property to individuals directly displaced by the August 2023 Maui wildfires.

The Iowa Department of Revenue is moving many paper-based processes to an online portal, GovConnectIowa, effective November 12, 2024. This change will affect retail tobacco permits, including the new device retail permit, and will require cigarette stamp orders and refund requests to be submitted online.

Oregon Tax Court upholds notice of deficiency despite clerical error, while the Department of Revenue replaces the POA form with two new authorization forms for representation and information.

Rhode Island requires distributors of cigarettes, OTP, and ENDS to be licensed effective January 1, 2025. A unified application is available December 1st. Only RI-licensed distributors can sell these products in RI, and only to other RI-licensed distributors or dealers. Cigars are exempt.

Texas has amended mixed beverage tax rules to align with 2021 legislation on off-premise alcohol delivery. The definition of "permittee" has been updated and "malt beverage" now encompasses ale, beer, and malt liquor.

Half Moon Bay: Minimum wage increases to $17.47 per hour. Daly City: Minimum wage increases to $17.07 per hour. Belmont: Minimum wage increases to $18.30 per hour. San Jose: Minimum wage increases to $17.95 per hour. Sunnyvale: Minimum wage increases to $19.00 per hour.

New Jersey's Senate Bill 2310, passed on September 26, 2024, requires employers with 10 or more employees to disclose salary ranges and benefits in job postings. The law, awaiting the Governor's signature, will take effect seven months after being signed and aims to promote transparency in hiring practices.

Tipped employees will earn 12.00 per hour in 2025. Tipped employees will earn $7.20 per hour. Employers can reduce wages by $1.00 per hour if they offer benefits, but the minimum wage cannot fall below 1.00per hour if they offer benefits , but the minimum wage cannot fall below $12.00 per hour.‍

The North Carolina Department of Revenue has expanded the list of counties eligible for Hurricane Helene interest relief to include 12 additional counties

Pennsylvania employers have until January 31, 2026 to file 2025 income withholding tax returns and submit REV-1667 with Form W-2/1099. Payments can be made through myPATH, TeleFile, or approved vendors.

Texas Workforce Commission is determining 2025 unemployment tax rates, expected by late December 2024. Rates are based on data submitted by October 31 and will be effective January 1, 2025. Employers can access the rates through the TWC Unemployment Tax Services System in December 2024.

Utah will not issue new withholding tax tables in 2025, as there are no rate changes planned. The Utah Department of Workforce Services is calculating 2025 unemployment insurance tax rates, with notices expected by the end of November 2024.

The Alabama CHOOSE Act website is now operational, several Alabama municipalities will see changes to their lodging tax rates. Alabama Taxpayers Affected by Hurricane Helene May Request Filing and Penalty Relief

Colorado has updated its tax laws. Key changes include: sales to the U.S. government outside of Colorado are not sourced to Colorado, property tax exemption rules have been amended, and the Medical Use of Marijuana Program application fee has increased to $52, effective October 15, 2024.

Starting January 1, 2025, Arizona will eliminate the city Transaction Privilege Tax (TPT) on residential rentals of 30 days or more.

The complete 2024 tax rates and exemption amounts will be available on the FTB website in late December. The statewide sales tax rate is 7.25%, with additional district taxes in most areas. Tax returns are due by October 15, 2024, but payments are still due by April 15. Senate Bill 167 limits the use of credits for tax

Delaware has updated its tax system, including: Military pensions: A new definition clarifies which pensions are tax-exempt. Short-term rentals: A 4.5% tax applies to stays of 31 nights or lessProperty tax: Changes include electronic notices, fair market value assessments, and a school property tax exemption

Effective November 1, 2024, Chicago's prepaid wireless E911 surcharge rate will increase from 0% to 9%, while the rate outside Chicago remains at 3%. This change is due to an amendment to the Prepaid Wireless 9-1-1 Surcharge Act, restoring Chicago's authority to impose a surcharge.

In October 2024, four Indiana counties have seen changes to their income tax rates. These changes were announced by the Indiana Department of Revenue.

The Louisiana Department of Revenue has updated its tax regulations. Casinos now have clarified sales tax rules for discounted and complimentary items. Installment agreements for tax payments have increased thresholds and payment periods. Aviation fuel dealers must now electronically file their sales tax returns

Maine Revenue Services announced that the Maine interest rate on underpayments and overpayments for calendar year 2025 will be 10%, compounded monthly, which is the same as the 2024 rate

Massachusetts Tax Amnesty 2024 program, which allows taxpayers to pay off outstanding taxes and interest by December 30, 2024. The Massachusetts exclusion amount for Tax Year 2024 has increased from 300 to 315 per month.

The Mississippi Department of Revenue has changed the effective date for when it adopts amendments to Miss. Admin. Code § 35.IV.11.03 (Aircraft), to October 17, 2024.

The Montana Supreme Court has upheld the Department of Revenue's (DOR) mass appraisal sales comparison methodology for valuing lakefront properties.

New Jersey has several tax updates for October 2024, including a 3.3125 percent sales tax rate for zero emission vehicles, tax relief for Hurricane Helene victims, a new taxpayer portal launching mid-to-late 2024, and a 5.39 percent corporate income tax rate for 2024.

New York has several tax updates for October 2024. The IRS has announced tax relief for taxpayers impacted by severe storms, which may impact certain tax-filing and tax-payment deadlines. The New York State Department of Taxation and Finance has extended the deadline for filing tax returns for 2023 to October 15, 2024,

Ohio has several tax updates for October 2024. The Ohio Department of Taxation has amended regulations for Commercial Activity Tax (CAT), adult-use cannabis tax, and property tax.

Oregon has several tax updates for October 2024, including: electronic filing for state and federal income taxes, a Cost-of-Living Adjustment (COLA) for the First-Time Home Buyer Savings Account, an electronic filing deadline of October 15th for PTE-E tax returns, a proposed ballot measure to increase corporate taxes.

The Pennsylvania Supreme Court ruled that property tax exemptions are not automatic and taxpayers must prove their eligibility. The court also upheld a tax on net gains from like-kind exchanges of real property, meaning taxpayers must pay income tax on these gains at the time of the exchange.

A new voluntary deduction from personal income tax refunds is available for contributions to the behavioral health fund. The Town of Smithfield extended the exemption period for industrial property from 10 to 20 years. Banking institutions can now choose how they allocate and apportion their net income.

South Carolina DOR updates include a new standard affidavit for beer/wine tax exemptions, tax relief for Hurricane Helene-affected taxpayers, a revised ACH Credit Instructions Manual, and a Supreme Court ruling requiring proper posting of tax levy notices.

The South Dakota Supreme Court upheld a use tax assessment on construction equipment brought into the state for projects, finding it did not violate the U.S. Constitution. Voters will decide on November 5, 2024, whether to eliminate the state sales and use tax on food and drinks, excluding alcohol and prepared foods.

The maximum acreage eligible for greenbelt valuation in Tennessee is 1,500 acres per person per county. This information is based on the Tennessee Code Annotated § 67-5-1003(3).

Vermont's Homestead Declaration, Property Tax Credit, and Renter Credit deadlines are October 15, 2024. Homestead owners must file annually, even if not seeking a credit. Taxpayers must meet income requirements and file a 2024 Homestead Declaration to be eligible for a property tax credit.

Washington's watercraft excise tax depreciation schedule is updated effective January 1, 2025. Employers and property managers can earn tax credits for commute trip reduction incentives through December 31, 2024 (employers) and December 31, 2023 (property managers).

Manitowoc County, Wisconsin, Enacts Sales Tax: Starting January 1, 2025, Manitowoc County will impose a 0.5% sales tax. This change has been reflected in all Wisconsin Department of Revenue sales tax publications.

The DC Earned Income Tax Credit will be boosted to 85% of the federal credit, effective for tax years starting after December 31, 2024, and lasting until December 31, 2028. Additionally, the general sales and use tax rate will rise from 5.75% to 6%

New Mexico's tax changes in October 2024 include a $231 million tax cut for residents, with the statewide portion of the Gross Receipts Tax dropping to 4.875% on July 1st.

Georgia's tax changes for October 2024 include updates to sales tax rates, which are effective on October 1st. Additionally, the state income tax rate was lowered to 5.39% on January 1st, 2024, and the deadline for filing 2023 income tax returns has been extended to May 1st, 2025, for those affected by Hurricane Helene

Tennessee offers a $2,500 sales tax refund for Hurricane Helene victims who received FEMA assistance. Eligible items include major appliances, residential furniture, and building supplies purchased for home repairs.

The Florida Department of Revenue is offering tax relief for businesses and individuals affected by Hurricane Helene. This includes a dyed diesel fuel tax penalty waiver from September 26th to October 15th, extended tax deadlines for businesses in 17 counties until November 22nd.

The Kansas Department of Revenue has issued a memo clarifying guidance on renewable energy resources and battery energy storage systems (BESS), including the renewable energy exemption, application process, and valuation.

The Minnesota Department of Revenue has announced that electronic filing of Form M1X, Amended Returns, will not be available for tax year 2024 due to development issues. The Department will accept amended returns on paper and is working to publish updated forms online by October 11, 2024.

The Nebraska Department of Revenue's Directive 24-3, issued on September 30, 2024, provides guidance on the assessment and valuation of renewable energy generation facilities, covering both real and personal property taxation, including exemptions.

The Texas Comptroller is offering a 90-day extension for Texas taxes (excluding property taxes) to out-of-state taxpayers affected by Hurricane Helene who are eligible for IRS disaster relief.

The Alaska Department of Revenue has announced that the interest rate for overpayments and underpayments for the fourth quarter of 2024

The Arkansas Department of Finance and Administration has updated local sales and use tax rates, effective January 1, 2025. The city of Barling's sales and use tax rate will be 0%, down from 1%. Several municipalities will annex additional territory, while others will de-annex certain territory.

The Hawaii Department of Taxation has issued guidance on the general excise tax (GET) for payroll service providers hired by film production companies operating in Hawaii.

The Missouri Department of Revenue has announced that the interest rate on underpayments for 2025 is 8%. This is down from 9% in 2024. The interest rate on refunds for the first quarter of 2025 (January 1, 2025, to March 31, 2025) remains at 3.2%.

The North Carolina Department of Revenue is offering tax relief to individuals and businesses affected by Hurricane Helene.

The Virginia Department of Taxation is providing automatic filing and payment extensions for final and estimated income tax payments and income tax returns made by individual and fiduciary taxpayers affected by Hurricane Helene.

Iowa's individual income tax rate for 2025 is a flat 3.8% with no income tax brackets. The annual interest rate for overdue taxes and refunds in 2025 will be 10%. Corporate income tax rates for 2025 will remain the same as 2024.

The Nevada Department of Taxation is going cashless, effective October 24, 2024. This means that all transactions at Department offices will require electronic payment methods, including checks, money orders, credit or debit cards, and electronic bank transfers.

The Michigan income tax rate will return to 4.25% in 2024, impacting taxes filed in 2025. The Michigan State Tax Guide provides information on the state income tax and other taxes you may need to pay.

Arizona State's Minimum Wage Set to Rise to $14.70 Per Hour in 2025

Arkansas has no expected changes to the 2025 withholdings tax tables

Wage withholding will continue at the regular income tax rate of 4.40% as specified by Colo. Rev. Stat. § 39-22-104(1.7)(c). Taxpayers and employers should expect the revised Form DR 0004 and Form DR 1098, which will include updates reflecting any new IRS adjustments to the standard deduction, to be released by the end

Connecticut is implementing changes to its Unemployment Insurance (UI) system, effective January 1, 2025

No Changes to Delaware's Withholdings Tax Table

Kentucky Same UI Tax Rate Schedule to Be Used in 2025

Portland Voters approve emergency wage ballot Measures'

The Michigan Department of Treasury issued income tax withholding tables for 2025, which includes a weekly, bi-weekly, semi-monthly, monthly, and per diem payroll period.

Oregon Proposed Rules Codify Paid Leave Stipulations for Foster Child Placement

South Carolina Unemployment Tax Information for 2025 Released

Washington Everett Voters Approve Minimum Wage to Take Effect July 1, 2025

The Massachusetts Department of Revenue has issued guidance for the 2024 tax amnesty program, which is open from November 1, 2024, through December 30, 2024. The guidance covers topics such as eligibility requirements, taxpayer types, amnesty program procedures, and exceptions and limitations.

The Michigan Department of Treasury has announced that the prepaid sales tax rate for gasoline will decrease to 16.8 cents per gallon and the prepaid sales tax rate for diesel fuel will decrease to 19.2 cents per gallon, both effective December 1, 2024, through December 31, 2024.

The Kansas Department of Labor announced the 2025 unemployment tax information

The IRS announced disaster tax relief for individuals and businesses in the Juneau area of Alaska, affected by flooding that began on August 5, 2024.

Iowa Updates Withholding Tax Tables as well as Unemployment Tax Rates

Washington state's Paid Family and Medical Leave (PFML) premium will increase from 0.74% in 2024 to 0.92% in 2025. Employers will pay 28.48% of the premium, while employees will cover 71.52%. This increase is due to record-breaking benefit payouts in 2024, totaling $1.35 billion for over 175,000 workers.

Federal Tax Deadlines for the month of November

Colorado Tax Deadlines Extended to May 2025 for Hurricane-Affected Taxpayers

Governor Pritzker announced tax relief for victims of severe storms, tornadoes, straight-line winds, and flooding in seven Illinois counties that began on July 13, 2024. Covered businesses have until February 3, 2025 to file quarterly payroll returns normally due on July 31, October 31, 2024, and January 31, 2025.

The Kansas Department of Revenue has updated its KW-100 withholding tax guide, including new information on credit card payments, amended Form KW-5, and updated payroll withholding tables.

Boone County, Kentucky has announced its 2025 tax rates, including a 0.5% Board of Education tax, 0.8% county tax, and 0.15% mental health tax. Campbell County has also released its 2025 payroll tax filing requirements, requiring quarterly returns and a 2024 Annual Reconciliation due by February 28, 2025.

Starting November 21, 2024, Massachusetts employees can use earned sick leave for pregnancy loss, unsuccessful assisted reproduction, adoption, or surrogacy. This expansion of the Massachusetts Sick Leave Law allows workers to take time off for their own or their spouse's health needs related to these events.

The Michigan Unemployment Insurance Agency (UIA) reminds employers that third-quarter wage/tax reports are due by October 25. Inactive accounts will be reviewed in November, and employers can claim credit balance refunds. Failure to submit reports could lead to increased tax rates.

Missouri's unemployment taxable wage base will decrease to 9,500∗∗in∗∗2025∗∗from 9,500∗∗in∗∗2025∗∗from∗∗10,000 in 2024. The new employer tax rate will remain at 2.376%, but experience-rated employers could see rates ranging from 0.0% to 6.0%, with potential surcharges.

The Idaho State Tax Commission is extending tax deadlines for victims of Hurricane Helene.

The Utah State Tax Commission determined that the taxpayer's project did not meet the residential requirement under Utah Code Ann. § 59-7-609(2)(c)