July 2017 state withholding tax changes

A few states have implemented mid-year state income tax withholding rate changes.  These include:


Illinois:

As of July 1, the withholding rate has increased from a flat 3.75% to 4.95%.   The supplemental wage rate has similarly increased.  The basic allowance has increased slightly from $2150 to $2175 (the additional allowance of $1,000 has not changed).  

Illinois users of Advanced Accounting's payroll module will need a program update from us in order to implement this change.  Contact us as 800-648-6258 or send an e-mail to support@addsuminc.com.

More information:
http://tax.illinois.gov/TaxForms/Withholding/IL-700-T-2017.pdf


Kansas:

Tax table percentage rates as well as base tax amounts have decreased effective July 1 for both "single" and "married" employees.  The earnings ranges for employees with a "married" status also was expanded.

The standard deduction remains at $2,250 (as it has since at least the year 2000).

The supplemental wage rate (assuming the federal supplemental wage rate is also used) remains at 5%.

Kansas users only need to update their KSS and KSM tax codes in Advanced Accounting's PR-K (maintain tax tables) option to correspond to the annualized rates outlined here:

https://www.ksrevenue.org/pdf/whrates2017.pdf

If you need assistance, please contact us at 800-648-6258 or e-mail us at support@addsuminc.com.   We have also updated Advanced Accounting's tax tables for Kansas.


More information:
https://www.ksrevenue.org/pdf/kw1002017.pdf



Other notes:


New York City made some mid-year tax table changes but the New York state tax table changes for the state that went into effect January 1, 2017 have not changed. Standard deduction amount changes went into effect January 1, 2017 and those were incorporated previously into our January 2017 Advanced Accounting payroll update. The supplemental wage rate for the state of New York of 9.62% remains in effect as it has since at least 2014 when we added supplemental wage rate support for a number of states into the latest version of Advanced Accounting.  More information with respect to New York is at:

https://www.tax.ny.gov/bus/wt/rate.htm

A number of states have made changes to either the handling of state withholding taxes (for example, in Nebraska, state withholding tax deposits as of July 1, 2017 have to be made electronically) or have made other non-withholding state tax changes.   We recommend making a quick check of your state's tax agency web sites to ensure compliance.