2020 R1 Payroll update and W-4 Changes

The year-end payroll updates for 2019 will be made available to us on Dec. 13, 2019. Work has begun on the end-of-year payroll changes and investigation into the W-4 changes to determine the impact to Payroll. The update will contain both application and binary changes. A payroll update will be made available for download for Dynamics 365 Finance and Dynamics AX 2012 R3 as soon as we can make the necessary changes reacting to the new payroll updates. 

Update:

(01/02/2020) - Tax release is live for AX 2012 and Dynamics 365 Finance through LCS by searching for "2020-R1". Release notes are linked below - 

Dynamics-365-FO-2020_2D00_R1-Payroll-Update-Release-Notes.pdf

(12/23/19) – Tax release label is 2020-R1, not 2019-R12. Also added information on 2020 W-4 changes. Releases for AX 2012 R3 and Dynamics 365 Finance are progressing, but likely won't be available for download before 12/26. 

2020 W-4 changes

The new changes for the 2020 W-4 will be surfaced as parameters on each employee's federal income tax worker tax code. Starting with this update, there will be a new parameter for 2020 W4 per employee, which will be defaulted to False for all users. With this option, you will be able to continue using the old or new W-4 calculation for withholding calculations per IRS requirements of only requiring new employees being required to fill out the 2020 format of the W-4.

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

Note: Final calculation changes are still in works from the IRS for publication 15-T so there will be forthcoming updates in January 2020 with final tax tables for the calculations. 

Tax Update Release Notes

2019-R8

US Tax Table/Rate Changes

• Jersey City employers with a quarterly gross payroll less than $2,500 are exempt from payroll tax, effective 1 January 2019.
• Lumber City Borough became part of Ferguson Township, Curwensville Area School District, Clearfield County, effective 1 Jan. 2014. PSD Code 170205 has been inactivated.
• 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. PSD Code 060904 has been inactivated.
• The first $40,000 of income a year paid to a Puerto Rico resident ages 16 to 26 is exempt from withholding (Puerto Rico Act 135).

US Tax Table/Rate Corrections

• 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
• Corrected the EIT rate for Brush Valley Township, United School District, Indiana County, Pennsylvania. The rate is 1.35%, not 1%.

Bug Fixes

• Fixed Georgia state income tax logic for Marital Status C ("Married Filing Joint, one spouse working") when an employee claims 2 allowances ("yourself and your spouse").
• The Oregon Transit Tax now computes for the following scenarios:
  • Wages of Oregon residents (regardless of where the work is performed).
  • Wages of nonresidents that perform services in Oregon.
  • Oregon residents that perform services outside of Oregon and have asked their out-of-state employer to withhold the tax from their wages as a courtesy (similar to income tax withholding).
• Washington Paid Family and Medical Leave (PFML) taxes now include imputed income when calculating subject and gross subject wages.

Miscellaneous Fixes

• getTaxCalcList no longer returns state income tax (SIT) for states without SIT.
• Subject and gross subject wages are no longer returned for states without state income tax (SIT), even if wages are set.
• Subject wages for Additional Medicare Tax are now computed correctly. They are no longer identical to the subject wages for Medicare Tax.

GNIS Changes and Corrections

• Added ZIP code 75036 (Frisco, TX) to the location database.

2019-R9

US Tax Table/Rate Changes and Corrections

• Updated annual payroll period tax table for Idaho state income tax
• (Kentucky) Camargo OLF increased to 2%
• Jeffersonville OLF increased to 2%
• Martin County OLF increased to 2%
• (Ohio) Bentleyville city tax credit factor (tax credit) decreased to 12.5%
• Bridgeport city tax of 1% added
• Coshocton tax credit for city tax corrected to 50%
• Etna-Reynoldsburg JEDD taxes added
• Massillon city tax rate increased to 2%
• (Pennsylvania) Allegheny municipal non-resident EIT increased to 1%
• Conemaugh municipal LST increased to $47
• Cross Roads municipal non-resident EIT increased to 1%
• Dushore municipal LST decreased to $0
• East Deer municipal non-resident EIT increased to 1%
• Huston municipal non-resident EIT increased to 1%
• Kimmel municipal non-resident EIT increased to 1%
• Liberty municipal non-resident EIT increased to 1%
• Loganville municipal non-resident EIT increased to 1%
• Martinsburg municipal non-resident EIT increased to 1%
• Mount Wolf municipal non-resident EIT increased to 1%
• North Hopewell municipal non-resident EIT increased to 1%
• Shrewsbury Township municipal non-resident EIT increased to 1%
• Union Township school district LST increased to $10
• Washington municipal LST increased to $10
• Wrightsville municipal non-resident EIT increased to 1%
• York Springs municipal non-resident EIT increased to 1%

Bug Fixes

• Fixed Connecticut tax calculations when working out-of-state
• Prevent unused parameters from being returned by queries.
• Corrected premiumCost for Hawaii SDI calculations
• Fixed miscellaneous parameter returning the state income tax ID instead of county tax ID in JSON
• Fixed logic for Kentucky non-stacked taxes
• Fixed logic for Massachusetts PFML tax subject wages
• Fixed New Jersey Workforce Development/Supplemental Workforce Funds rounding error
• Add Pennsylvania LST low income exemption option
• Fixed null pointer exception in Chambersburg Borough LST
• Fixed Shrewsbury Township resident rate rounding to 18 decimal places
• Fixed Vermont state income tax nonresident calculation
• Fixed Washington Paid Family Leave returning zero for subject wages.
• Fix getTaxCalcList to not return taxes before their effective date
• Changed internal string delimiter to prevent "Invalid parameter values" error
• Deductions for SUTA no longer incorrectly prorated
• Fix getBenefitCalculationV2List bug
• Fixed false positives when checking for existence of custom types

2019-R9a

US Tax Table/Rate Changes and Corrections

• (Ohio) "Etna-Reynoldsburg JEDD 3" effective date corrected
• "Milford JEDD VI Tax" added
• "Mount Healthy Springfield Twp Hamilton Cnty JEDD Tax" updated
• Springfield Township JEDZ Tax corrected to Hamilton County
• (Pennsylvania) Barnesboro Borough inactive EIT disabled in database
• Spangler Borough inactive EIT disabled in database
• Temple Borough inactive EIT disabled in database
• West Lawn Borough inactive EIT disabled in database
• (Vermont) "Vermont Catamount Healthcare Assessment Tax - Employer" updated to $167.02
• (Virginia) Standard Deduction (Single) increased to $4,500

Bug Fixes

• (Hawaii) Corrected premiumCost for Hawaii SDI calculations
• (Kentucky) Hazard OLF calculating with a different rate than displayed from TaxIDList
• Correct "nonresidentonly" behavior in State
• Calculation Override
• Enforce limit of one STEObjectPool
• Fix lschema.dll error
• Fixed custom benefits throwing Error 74
• Fixed "Unrecognized field" error when setting stateCalcOverride in STE Hosted

2019-R10

US Tax Table/Rate Changes and Corrections

• Massachusetts PFML rate changes
• Updated Minnesota withholding tax tables
• (Ohio) Alexander local school district tax added
• Marietta tax credit increased to 100%
• (Pennsylvania) Patterson Township municipal nonresident EIT decreased to 0%
• "Vermont Catamount Healthcare Assessment Tax - Employer" effective date corrected to 1 Jan. 2019
• (West Virginia) Madison city service fee increase on 1 Jan. 2020
• Montgomery city service fee tax added

Bug Fixes

• (Federal) IS_PENSION_PAYMENT miscellaneous parameter no longer used.
• Fix employer contributions to Roth 401(k) for state unemployment
• (Illinois) Remove FILINGSTATUS miscellaneous parameter
• (Montana) Remove FILINGSTATUS miscellaneous parameter
• "New York Family Leave Benefits" not reporting gross wages properly
• (Puerto Rico) ALLOWANCEBASEDONSPECIALDEDUCTION miscellaneous parameter no longer used
• (Washington DC) - "DC Paid Family Leave - Employer" not reporting gross subject wages properly for supplemental wages
• (Misc) Update certificateLineNo for all miscellaneous parameters
• Update multi-state withholding

2019-R10a

US Tax Table/Rate Changes and Corrections

• (Indiana) - Clay County Tax increased to 2.35%
• Clinton County Tax increased to 2.45%
• Dubois County Tax increased to 1.2%
• Fayette County Tax increased to 2.57%
• Greene County Tax increased to 1.95%
• Hancock County Tax increased to 1.94%
• Hendricks County Tax increased to 1.7%
• Johnson County Tax increased to 1.2%
• Ohio County Tax increased to 1.5%
• Owen County Tax increased to 1.4%
• Putnam County Tax increased to 2.1%
• Sullivan County Tax increased to 1.7%
• Whitley County Tax increased to 1.6829%
• (Nebraska) New employer category added to
• Nebraska State Unemployment Tax
• (Ohio) Clinton-Massie LSD tax of 0.5% will be added
• Emerald Park Revenue Sharing tax increased to 2.5%
• Evergreen LSD tax decreasing to 1.5%
• Jackson-Canton CD JEDD tax of 2.5% added
• Jackson Canton FP JEDD tax increased to 2.5%
• Jackson Canton SM JEDD tax increased to 2.5%
• Jackson Canton TWR JEDD tax increased to 2.5%
• Mount Healthy Springfield Twp Hamilton Cnty JEDD tax update reversed
• Northridge LSD tax of 0.5% added
• Pleasant LSD tax of 1% added
• River Valley LSD tax of 1% added
• Riverside LSD tax decreasing to 1.5%
• (Oregon) Workers' compensation decreasing to 1.1 cents/hour for employers and employees

Bug Fixes

• Employers can claim exempt from portions of Massachusetts PFML
• Correct Massachusetts Employer PFML effective date
• Check for nexus for Oregon State Transit Tax
• Multi-state wages corrected

GNIS Changes and Corrections

• Camargo, KY (GNIS ID 488655) has been added to ZIP code 40353.
• Glenburn, ME (GNIS ID 582491) has been added to ZIP code 04401.
• Added ZIP code 29486 for Summerville, SC (GNIS ID 1251073).

2019-R11

US Tax Table/Rate Changes and Corrections

• (Kentucky) Benton OLF increasing to 0.6%
• Boone County OLF tax limit increasing to $505.09
• Daviess County OLF rate increasing to 0.7%
• Ludlow OLF rate increasing to 2%
• (Massachusetts) Massachusetts EMAC Supplement ending in 2020
• (New York) New York Paid Family Leave Insurance rate increasing to 0.27%

Bug Fixes       

• (Federal) Additional Medicare tax not correctly reporting gross subject wages
• Head of Household filing status missing in .NET, C, and Pascal
• (Indiana) County taxes not obeying ADDITIONALCOUNTYWITHHOLDING parameter
• (New Jersey) New Jersey SUTA-based taxes withheld when SUTA gross wages set in different state
• (New York) New York MCTMT Employer Payroll Tax calculating outside valid counties
• (Virginia) SIT subject wages doubled when wages set in D.C., but no wages set in VA
• (West Virginia) Montgomery City Service Fee rate error
• (Miscellaneous) Fix null values for getListValues() for four miscellaneous parameters
• New HSA option type

2019-R12

US Tax Table/Rate Changes and Corrections

• (Federal) Social Security / FICA wage base increase
• RRTA Tier I Tax wage base increasing
• (Iowa) 2020 updates for the Iowa tax tables
• Iowa State Unemployment Tax wage base increasing to $31,600
• (Kentucky) Crab Orchard OLF tax added
• Hancock County OLF tax rate increasing
• Pendleton County OLF tax rate increasing
• Update OLFs that use increasing Social Security wage base
• (Massachusetts) Massachusetts PFML wage base increasing
• (Missouri) Missouri State Unemployment Tax wage base decrease
• (Montana) Montana State Unemployment Tax and Administrative Fund Tax wage base increase
• (New Jersey) Reclassify the Jersey City Employer Tax as a POP tax
• (New York) New York ECET tax rate increasing
• New York SUTA and New York Reemployment Fund wage bases Increasing
• (Ohio) Columbia Township JEDZ Tax description, tax credit, and credit limit corrected
• Green Township - Cheviot JEDD I (Western Ridge) wage base increase
• Green Township - Cheviot JEDD II (Christ-Children's) wage base increase
• Green Township - Cheviot JEDD IV (Harrison Greene) wage base increase
• Green Township - Cheviot JEDD V (UDF/North Bend) wage base increase
• Green Township - Cheviot JEDD VI (McAlister's) added
• (Washington) Washington PFML wage base Increasing
• (West Virginia) Wheeling City Service Fee added
• (Wyoming) Wyoming State Unemployment Tax wage base increasing to $26,400

Bug Fixes

• (California) California SIT multi-state withholding fix
• California SIT now reports subject and gross subject wages for multi-state calculations
• (Colorado) State calculation override of "residentonly" ignoring out-of-state wages
• (Indiana) Indiana SIT multi-state withholding fix
• (Kentucky) Kentucky multi-state behavior corrected
• (Michigan) Michigan SIT multi-state withholding fix
• (Nebraska) Nebraska SUTA applying incorrect wage base
• Nebraska SIT incorrectly withholding on nonresidents
• (Nevada) Nevada MBT General Business Tax withholding before $50,000 YTD threshold
• (New York) New York SIT now reports subject and gross subject wages for multi-state calculations
• (Oregon) Oregon SIT multi-state withholding fix
• (Vermont) Vermont SIT incorrectly withholding on nonresidents
• (Washington) Gross-up not calculating correctly when including Washington PFML
• Washington Industrial Insurance now returns gross, subject, and gross subject wages
• (West Virginia) Montgomery City Tax incorrectly reporting subject wages
• (Wisconsin) Wisconsin SIT multi-state withholding fix
• (Miscellaneous) Fix V2Benefits employer contributions
• Gross-up improvements

2020-R1

US Tax Table/Rate Changes and Corrections

• (Federal) 2020 federal income tax withholding tables updated
• IRS limits updated
• Railroad Unemployment Tax wage base increasing
• RRTA Tier II Tax wage base increasing
• (Arkansas) Arkansas SUTA wage base decreasing
• (Colorado) Colorado SUTA wage base increasing
• (Hawaii) Hawaii SUTA and Employment and Training Tax wage base increasing
• (Idaho) Idaho Administrative Reserve tax no longer active
• (Illinois) Illinois SUTA wage base decreasing in 2020
• (Kentucky) Highland Heights OLF wage base increasing
• Nortonville OLF rate increased
• State tax standard deduction increasing
• Kentucky SUTA and Service Capacity
• Upgrade Fund wage bases increasing
• (Minnesota) Minnesota SUTA and Workforce Enhancement Fee wage bases increasing
• Nevada SUTA and Career Enhancement Program wage bases increasing
• (New Jersey) New Jersey FLI rate and wage base increasing
• New Jersey SDI rate and wage base increasing
• New Jersey employer SDI, SUTA, and SUI wage base increasing
• New York state tax tables updated
• Yonkers tax tables updated
• (North Dakota) North Dakota state tax tables updated
• (Ohio) Ohio state tax tables updated
• Ohio SUTA wage base decreasing
• Amanda-Clearcreek Local School District tax reinstated
• Central Local School District tax increasing
• Circleville city tax increasing
• Lisbon city tax increasing
• Mifflin city tax inactivated
• Sidney city tax decreasing
• Tallmadge city tax increasing
• Triway Local School District tax increasing
• Union City tax increasing
• Wilmot city tax increased
• (Oklahoma) Oklahoma SUTA and Technology Fund wage bases increasing
• (Oregon) Oregon SUTA wage base increasing in 2020
• (Utah) Utah SUTA wage base increasing
• (Vermont) "Vermont Catamount Healthcare Assessment Tax - Employer" rate increasing

Bug Fixes

• (Federal) Supplemental wages being returned when they should not
• (Massachusetts) Massachusetts PFML not returning correct gross subject wages
• (Special announcements) Only compute NONRESPERCENTAGE when Nebraska is nonresident state
• Update line number descriptions for Nebraska State Tax misc. parameters
• (New Jersey) Jersey City tax missing description
• (New Mexico) Correct Workers' Compensation typo
• (Oregon) Correct Workers' Compensation typo
• (Pennsylvania) Fix PA EIT subaccount duplication bug
• (Vermont) Only compute NONRESPERCENTAGE when Vermont is nonresident state
• (Washington) Washington PFML not returning correct gross subject wages
• Employer Industrial Insurance now returns gross, subject, and gross subject wages
• (Wyoming) Correct Workers' Compensation typo
• (Multi-state fixes) Some states not calculating correctly when Vermont was the nonresident state
• Missing subject wages for various multi-state scenarios
• Maryland nonresident credit type changed to "Full"
• (Misc fixes) Fix employer contributions in custom BenefitTypes