Tax Updates

Federal Tax Changes

2010 Federal Withholding

• New Federal income tax withholding tables, effective 1/1/2010.

Advance Earned Income Credit (AEIC)

• New Advance Earned Income Credit (AEIC) tables effective 1/1/2010. Filing status "Married Without Spouse Filing Certificate" is separated in the tables from filing status "Single or Head of Household." We currently do not support this separated filing status.

State/Local Tax Changes - 2010

Alabama

• Due to the Federal withholding tables changing, there may be a difference in Alabama withholding calculations, effective 1/1/2010.

Alaska

• Wage limit for state unemployment insurance (UI) increased to $34,100 from $32,700.

Arizona

• New withholding tables effective 1/1/2010. The withholding rates are changing from 11.5%, 21.9%, 26.5%, 28.8%, 35.7%, and 42.6% to 10.7%, 20.3%, 24.5%, 26.7%, 33.1%, and 39.5%, respectively.

Arkansas

• Wage limit for state unemployment insurance (UI) increased to $12,000 from $10,000.

California

• New withholding tables effective 1/1/2010. Wage limit for state disability insurance (SDI) increased to $93,316 from $90,669.

Colorado

• No change.

Connecticut

• No Change.

District of Columbia

• New withholding tables effective 1/1/2010.

Delaware

• New withholding tables effective 1/1/2010.

Florida

• Wage limit for state unemployment insurance (UI) increased to $8,500 from $7,000

Hawaii

• Wage limit for state disability insurance (SDI) increased to $46,888.40 from $45,639.88
• Wage limit for state unemployment insurance (UI) and Employment and Training Assessment surcharge (E & T Assessment) increased to $38,800 from $13,000

Idaho

• Wage limit for state unemployment insurance (SUI) and Workforce Development Fund (WDF) increased to $33,300 from $33,200.

Illinois

• Wage limit for state unemployment insurance (UI) increased to $12,520 from $12,300.

Indiana

• Wage limit for state unemployment insurance (UI) increased to $9,500 from $7,000.

Iowa

• Due to the Federal withholding tables changing, there may be a difference in Iowa withholding calculations, effective 1/1/2010.
• Wage limit for state unemployment insurance (UI), Admin. Surcharge, and Reserve Fund increased to $24,500 from $23,700.

Kentucky

• New withholding tables effective 1/1/2010. /li>

Louisiana

• Wage limit for state unemployment insurance (UI)increased to $7,700 from $7,000. /li>

Maine

• New withholding tables effective 1/1/2010.

Maryland

• No Change

Massachusetts

• New withholding tables effective 1/1/2010.

Michigan

• No Change.

Minnesota

• New withholding tables effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) and Workforce Enhancement Fee (WEF) increased to $27,000 from $26,000.

Missouri

• New withholding tables effective 1/1/2010.
• Due to the Federal withholding tables changing, there may be a difference in Missouri withholding calculations, effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) increased to $13,000 from $12,500.

Montana

• Wage limit for state unemployment insurance (UI) and Admin. Fund Tax (AFT) increased to $26,000 from $25,100.

Nebraska

• No Change.

Nevada

• Wage limit for state unemployment insurance (UI) and Career Enhancement Program (CEP) increased to $27,000 from $26,600.

New Hampshire

• Wage limit for state unemployment insurance (UI) and Administrative Contribution (AC) increased to $10,000 from $8,000.

New Jersey

• New withholding tables effective 1/1/2010. Wage limit for state unemployment insurance (UI), Workforce Development/Supplemental Workforce Fund (WF/SWF), Health Care Subsidy (HCS), and state disability insurance (SDI) increased to $29,700 from $28,900.

New Mexico

• New withholding tables effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) and Trust Fund Tax (TFT) decreased to $20,800 from $20,900.

New York

• New withholding tables effective 1/1/2010.

North Carolina

• Wage limit for state unemployment insurance (UI) increased to $19,700 from $19,300.

North Dakota

• New withholding tables effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) increased to $24,700 from $23,700.

Ohio

• New withholding tables effective 1/1/2010.

Oklahoma

• New withholding tables effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) increased to $14,900 from $14,200.

Oregon

• Due to the Federal withholding tables changing, there may be a difference in Oregon withholding calculations effective 1/1/2010.
• Oregon Lane Transit District rate increased to 0.66% from 0.65% effective 1/1/2010.
• Oregon Tri-Met Transit District rate increased to 0.6818% from 0.6718% effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) has increased to $32,100 from $31,300.

Pennsylvania

• Employee state unemployment insurance (UI) rate increased to 0.08% from 0.06%, effective 1/1/2010.

Puerto Rico

• No Change.

Rhode Island

• New withholding tables effective 1/1/2010.
• Wage limit for state disability insurance (SDI) has increased to $57,900 from $56,000.
• State disability insurance (SDI) tax rate has decreased to 1.2% from 1.5%, effective 1/1/2010.

South Dakota

• A Surcharge tax has been enacted effective 10/1/2009 by the state and is now a part of the 2010 tax tables. The rate is set by the agency for all liable employers and has the same wage limit as unemployment insurance of $10,000.
• Wage limit for state unemployment insurance (UI) and Investment Fee has increased to $10,000 from $9,500.

Utah

• Wage limit for state unemployment insurance (UI) has increased to $28,300 from $27,800.

Vermont

• New withholding tables effective 1/1/2010.
• Wage limit for state unemployment insurance (UI) has increased to $10,000 from $8,000.

Washington

• Wage limit for state unemployment insurance (UI) and Employment Admin. Fund increased to $36,800 from $35,700.

Wisconsin

• No Change.

Wyoming

• Wage limit for state unemployment insurance (UI) increased to $22,800 from $21,500.