Timeline

When will this be released?

October 16, 2025 5 PM PST

Is there downtime for this release?

No

Connecticut Paid Leave (CT FLI) to use SUTA Gross wages

In an upcoming release, we are updating how Connecticut Paid Leave (CT FLI) wages are calculated within the engine. Currently, CT FLI is calculated based on regular wages, with a dependency on SUTAGross wages being defined (though SUTAGross wages themselves are not directly subject to CT FLI). In a future release, CT FLI taxable wages will soon be based on SUTAGross wages.

U.S. – Calculation Changes

Kentucky City OLF wage base calculation logic updated

The engine now considers both period withheld and year-to-date withheld values when determining if an employee has reached the Kentucky City OLF wage base. If a period withheld value is present, the engine will continue to use it. If the period withheld value is zero, the engine will fall back to the year-to-date withheld amount. Previously, the engine only used periodWH to determine if the employee reached the wage base.

Anne Arundel & Frederick County supplemental calculation corrected 

Effective January 1, 2025, the Anne Arundel and Frederick County supplemental-only payroll calculation logic was updated to align to the 2025 Maryland Withholding Guide. Previously, the engine calculated Anne Arundel and Frederick County withholding for supplemental-only paychecks based on the bracket-based logic. We will now apply a flat combined rate using the following for supplemental-only payroll runs: The highest state tax rate (6.5%) The highest local county rate (3.20%) This results in a combined withholding rate of 9.7%. This change affects only supplemental-only payroll calculations. It does not impact calculations that include regular wages (alone or with supplemental wages). Only lump sum calculations using supplemental-only wages will be updated.

As a reminder, the state and county taxes are returned as a combined amount together under the Maryland State Tax. The portion of the tax from the state itself is unaffected by this change.

Pennsylvania Correction to Low-Income Exemptions for EIT 

When the low-income exemption global option is enabled and an employee’s annual gross wages exceed the exemption amount, the engine will now correctly calculate and withhold the EIT.

Previously, the engine incorrectly returned $0 tax when wages exceeded the exemption threshold. This change applies only to EITs. The low-income exemption logic for LSTs remains unchanged and correct.

U.S. – Updated Taxes 

Kentucky Powell County - OLF rate updated

Effective July 1, 2025, the Powell County Occupational License Fee rate increased from 1.25% to 1.75%. 

U.S. – Geolocation

Utah 

Utah ZIP code 84129 added to Taylorsville

SUI Method to allow Wage Base Limit 999,999,999.99

We now allow a SUI Wage Base Limit of 999,999,999.99 to allow self adjustment with no maximum wage base limit or tax limit.
 

Appendix: Bugs Resolved 

Functional