Timeline

When will this be released?

Thursday, 05/07/2026 at 5 PM PST

Is there downtime for this release?

No

U.S. – New Taxes

Kentucky

Irvington - OLF added

Effective November 24, 2025, a new Occupational License Fee (OLF) has been added for

the City of Irvington. The tax applies to employees working inside the city limits of

Irvington who earn $25,000 or more per year (all wages are taxed once the employee's

annual wages reach or exceed $25,000). Employees earning less than the annual $25,000

thresholds are not subject to the tax. The resident and nonresident rate is 0.25% and there

has no wage base.

To ensure accurate withholding, the following jurisdiction parameter has been added to

handle the unique annual threshold of $25,000:

• ANNUAL_WAGES : The employee’s expected total wages for the calendar year

The engine uses the ANNUAL_WAGES parameter to determine if the employee meets the$25,000 threshold. It is highly recommended to set this parameter for any employee expected to meet the threshold to ensure tax is calculated correctly from the first paycheck. The STE does not perform automatic "catch-up" withholding for wages earned before the threshold was met. Therefore, failure to set this parameter for an eligible employee may result in under withholding.

Reference: City of Irvington, KY

U.S. – Calculation Changes

Colorado

Colorado OPT primary-city selection improved

In multi-city Colorado payroll scenarios, the engine now determines the primary city using only active city OPT taxes for the pay date.

Previously, a deactivated city tax (for example, Aurora) could still be considered when determining the primary work location. In cases where an employee worked more hours in a deactivated city than in an active city, this could prevent the active city’s OPT from being calculated.

With this update, the engine dynamically evaluates whether a city OPT tax is enabled for the pay date. Deactivated city taxes are ignored in primary city determination, ensuring that applicable active city taxes (such as Denver) are calculated correctly when wage thresholds are met.

Kentucky

Irvington OLF Annual Wages support

The Irvington OLF tax introduced now uses the ANNUAL_WAGES parameter to evaluate its $25,000 wage threshold. When provided, ANNUAL_WAGES determines threshold eligibility instead of current-period wages.

Minnesota

Minnesota PFML employer pickup subject wage alignment

When an employer picks up part or all of the employee's Minnesota PFML contribution, the PFML tax is now recalculated on wages increased by the pickup amount. This aligns Minnesota PFML subject wages with Minnesota SUTA subject wages, as required for quarterly reporting.

Example: employer pickup increases PFML subject wages

An employee earns $1,000 in wages and the employer covers 100% of the PFML contribution.

Previous behavior

• PFML subject wages: $1,000
• Employer PFML tax: $8.80
• Taxable pick-up amount: $4.40
• SUTA subject wages: $1,004.40

Previously, the pickup amount increased SUTA wages, but PFML continued to calculate on the original wages, resulting in a mismatch between PFML and SUTA subject wages.

Current behavior

• PFML subject wages: $1,004.42
• Employer PFML tax: $8.84
• Taxable pick-up amount: $4.42
• SUTA subject wages: $1,004.42

With this update, PFML is recalculated using wages that include the employer pickup, ensuring PFML and SUTA subject wages remain aligned.

Ohio

JEDD multi-location wage aggregation

JEDD taxes in Ohio now correctly aggregate wages when an employee works in multiple locations within the same JEDD. Previously, only one location’s wages were considered, which could result in under withholding.

When multiple work locations map to the same JEDD, the engine now sums wages across those locations and calculates tax on the combined amount. This behavior applies when wages are provided using the full location code, enabling the engine to associate multiple work locations to a single JEDD.

This change does not affect scenarios with a single work location or Ohio city taxes that are not associated with a JEDD.
 

Calculation Methods

SIT supplemental withholding with current aggregation

When the engine applies the current aggregation supplemental method when computing state income tax, it now rounds the combined regular and supplemental tax according to the state’s rounding requirements before deriving the supplemental portion. This results in supplemental withholding that follows the intended rounding sequence.

U.S. - Updated Taxes

Multi-State

In multi-state payroll scenarios, the engine now returns gross wages based solely on the taxing state, excluding wages earned in other states, for the following taxes:

• Washington Long-Term Care Insurance
• Washington Paid Family and Medical Leave
• New York Paid Family Leave
• Eugene Community Safety Payroll Tax

Note: This change impacts gross wage reporting only. Subject wages and tax calculations remain unchanged and may still consider multi-state wages where applicable.

Pennsylvania

Township of Wilkes Barre School District EIT (408852) updated

Effective January 1, 2026, the Wilkes Barre, Township of - EIT - Wilkes-Barre A S D(408852) was updated:

• The total resident EIT has increased from 1.25% to 1.5%
  • The municipal resident EIT has increased from 0.75% to 1%
  • The school district EIT rate remains 0.5%
• The municipal nonresident EIT rate remains 1%

Reference: PA Department of Community and Economic Development

Township of Miles Penns Valley Area School District LST updated

Effective January 1, 2026, the Miles, Township of - LST - Penns Valley Area S D (147003)

(LST) has been updated:

• The total LST amount has increased from $0 to $52
  • Municipal LST has increased from $0 to $52
  • School District LST remains $0
• A municipal LST low income exemption (LIE) increased from $0 to $12,000

Reference:  PA Department of Community and Economic Development

West Virginia

West Virginia SIT updated

Effective January 1, 2026, West Virginia State Income Tax brackets and rates have been updated.

Supplemental withholding calculations reflect the updated annual rates.

The value of an exemption remains $2,000.

This update is based on the published IT-100.2.A Percentage Method of Withholding tables, which differ from the 2026 Income Tax Rate Cut overview that presents adjusted rates. Additionally, the example for supplemental withholding has not yet been updated.

These changes were enacted under SB 392, signed into law on March 31, 2026.

Reference: West Virginia Tax Division Tables for Percentage Method Withholding IT-100.2.A

New Jersey

FLI

The NJ FLI Taxable Wage was exceeding its limit. We have now correctly capped it at the 165,400 limit, and the issue has been resolved. 

U.S. – Informational Updates

Massachusetts

MA EMAC subject wages QTD

Subject wages quarter-to-date (QTD) for MA employer EMAC now caps at the EMAC wage base when year-to-date (YTD) is at the cap, so QTD/YTD subject and excess wage reporting stay consistent with the wage base rules.

Previously, QTD subject wages for Massachusetts employer EMAC could be too low when wages plus in-scope employer amounts (for example, employer retirement contributions counted in the SUTA wage basis) brought YTD subject wages up to the $15,000 EMAC wage base. In those cases, subject wages QTD did not cap at the wage base the way subject wages YTD did.

Please note there was no change to the actual tax calculation with this update. Current-period MA employer EMAC is still based on current-period subject wages × rate. This update corrects QTD reporting and cap treatment; it does not change how period tax is calculated.

PFMLs

OR and CO PFML exempt logic refactored

We optimized the code responsible for exempting Oregon and Colorado PFMLs for consistency and maintainability. Tax calculation results remain unchanged and employer-paid scenarios for exempt employees continue to behave as before.

Shapefile Updates

Oregon

Portland - 2026 March updated shapefile data

The Portland area Transit Districts, Metro, and Urban Growth shapefiles are updated to reflect the March 2026 update.

Documentation:

• Transit Districts
• Metro
• Urban Growth Boundary

West Virginia

Parkersburg city shapefile updated

We updated the Parkersburg city shapefile in West Virginia to remove a parcel from the

Parkersburg city boundary, as per county guidelines.

New Feature/Enhancements

Mandatory Preview Refresh for W-2c Finalization

To ensure data integrity, the Finalize action will now be disabled (grayed out) whenever a user navigates away from and returns to the W-2 Correction dashboard. Users must trigger the Preview Corrections process to pick up any back-end data changes before the system allows them to finalize the forms.

Additionally, a modal notification will alert users to this requirement upon re-entry to the dashboard if pending corrections exist.

Value:

• Data Accuracy: Prevents the submission of stale data by ensuring the most recent employee record changes are captured in the final output.
• Compliance: Reduces the risk of filing incorrect W-2c forms due to manual edits made between the preview and finalization stages.
• User Guidance: Clearer messaging reduces support tickets regarding "missing changes" in finalized documents.

• Payroll Administrators and Tax Compliance Officers responsible for processing year-end corrections and generating W-2c forms.

Examples

• Scenario A: An Admin previews a batch of W-2c forms, notices a typo in an employee's address, and navigates to the Employee Profile to fix it. Upon returning to the W-2 Correction dashboard, they are prompted to "Preview" again so the new address is pulled into the file before Finalizing.
• Scenario B: An Admin starts a correction batch but gets interrupted and logs out. When they log back in the next day, the "Finalize" button is grayed out to ensure any mid-day payroll adjustments made by other team members are reconciled via a fresh Preview.

Items Removed 

• The ability to click Finalize immediately upon re-entering the dashboard if a previous preview exists.
• The "auto-finalize" assumption that previously generated preview data is always current.

Gross-Up

The gross-up feature was delayed from the Spring Release to this monthly release.  You may now use this feature.

We can gross up using both regular and supplemental taxation for non-payment earnings (Fringe Benefits), such as when an employee receives a gift card, and for earnings where the employee actually receives the net pay.

All gross-ups must be paid on an off-cycle, due to a limitation with our tax calculation vendor—they cannot process both a gross-up and regular pay on the same check. Once our tax calculation vendor resolves this issue, we will enhance our system to allow gross-ups to be included on a regular check alongside other earnings.

You must turn on Gross-Up on the Payroll_SETUP page.

When you enable this feature, you'll notice it's labeled as Beta. While we’ve thoroughly tested its functionality, we recognize that customers may encounter unique scenarios we haven’t anticipated. We’re also working within the constraints of our tax calculation provider. If you experience any issues, please open a service request. 

We now support the following types of Gross-Ups Type:

• Non-Payment (like a gift card)
  • GROSSUP-FRINGE-REG (Regular Taxation)
  • GROSSUP-FRINGE-SUP (Supplemental Taxation)
• Net Pay (Employee is paid net $1000.00 then grossed-up)
  • GROSSUP-NETPAY-REG (Regular Taxation)
  • GROSSUP-NETPAY-SUPP ((Supplemental Taxation)

We delivered 4 new elements:

• Elements
  • GROSSUP-FRINGE-REG
    1. Element Name: GROSSUP-FRINGE-REG
    2. Description: Gross-Up Fringe Reg Tax Not Paid
  • GROSSUP-FRINGE-SUP
    1. Element Name: GROSSUP-FRINGE-SUP
    2. Description: Gross-Up Fringe Sup Tax Not Paid
  • GROSSUP-NETPAY-REG
    1. Element Name: GROSSUP-NETPAY-REG
    2. Description: Gross-Up Net Pay Reg Tax Paid
  • GROSSUP-NETPAY-SUPP
    1. Element Name: GROSSUP-NETPAY-SUP
    2. Description: Gross-Up Net Pay Sup Tax Paid

On the Earnings Setup Pages (SUPER_IPPCEL and SUPER_IPPC), you’ll see four new Tax Categories. Certain prerequisites must be met before they appear.

New Tax Category

• Gross-Up Net Pay Reg Paid
• Gross-Up Net Pay Sup Paid
• Gross-Up Fringe Reg Tax Not Paid
• Gross-Up Fringe Sup Tax Not Paid

Setting up Earnings:

• Gross-Up Earnings the creates a net pay must be configured as followed:
  • Code Type = Amounts Only
  • Type = SE - Standard Earnings
  • Tax Category
    • Gross-Up Net Pay Reg Paid
    • Gross-Up Net Pay Sup Paid
• Gross up Earnings that are setup as a Fringe Benefit and not to be paid (like a gift card)
  • Code Type = Amounts Only
  • Type = FB - Fringe Benefits
  • Tax Category
    • Gross-Up Fringe Reg Tax Not Paid
    • Gross-Up Fringe Sup Tax Not Paid

Creating Gross-up:

On the Pay Batch run control, you must indicate if your payroll will be a gross-up. Gross-ups cannot be processed on regular payrolls and must be run off-cycle, so you won’t see the gross-up option when creating a new batch for a regular pay.

Once you select an off-cycle payroll, you’ll see a new field called “Gross-up.” From there, you can choose one of the four previously mentioned gross-up types. You’ll also notice that the “Included Attendance Plans” option is not available and remains grayed out.

When you select the Gross-up option, you’ll see a warning message stating that Gross-up calculations use work jurisdictions for taxation. Currently, our tax calculation vendor cannot handle multiple states with reciprocity rules. If an employee resides in one state but works in another with reciprocity requirements for resident state withholding, you can override the employee’s Pay Header Work Jurisdiction to the resident jurisdiction for this calculation. 

You will also notice that on the Pay Header Record you are not allowed to change the Resident State.  But, once again you can change the Work State if needed.

When you add a gross-up earnings to an employee’s pay, you’ll notice that the only available earning codes are those tied to the gross-up type selected on the Create Batch page. It displays all earning codes associated with that element.

Value:

Calculating Gross-ups manually can be complex and time-consuming.  Automating this process saves time and reduces the risk of human errors.

Audience:

Payroll Administrator

Examples:

Please see the release notes attached.  There will be screen shots in there.

Items Removed

The following is not allowed:

• Gross-up calculations on a regular pay.
• Multi-State taxation.  Gross-ups are only calculated on the Work State. 

Allowing additional submitter information to the W-2 Configuration page

We have added the Software Code and Preparer Code fields to the Submitter Details section on the W-2 Reporting Configuration page within the Payroll Compliance Hub. Both fields are optional, and you can proceed even if no values are entered. 

We have also added the following fields to the W-2 Reporting Configuration page, after the Submitter Section in the Payroll Compliance Hub:

• Employer EIN
• Employer Name
• Employer Address
• Delivery Address
• City
• State
• Zip
• Zip Code Extension
• Contact Name
• Contact Phone
• Contact Email

Value:

Allows us to be in compliance with reporting requirements.

Audience:

Payroll Administrator

Examples:

N/A

Items Removed

N/A

New functionality to allow PTO hours/wage to be included in FLSA wage but excluded from the premium pay.

We created a new FLSA method called "FLSA Minus Leave." Once you configure your Workrule to include the FLSA Minus Leave method and set up your Element and Groups appropriately, you can calculate FLSA including PTO wages and hours, while excluding those hours from the FLSA premium calculation. 

Value:

Provides the flexibility for customers to manage their own FLSA compliance. 

Audience:

Payroll Administrator

Examples:

N/A

Items Removed

N/A

Appendix: Bugs Resolved 

Functional

508(C) Compliance