Payroll: 2014 Tax Update

OpenRDA/Xpert programs have been released (January 3, 2014 compile/release date) and include resources for updating tables, exemption amounts, allowances, etc. in the Payroll module for federal/FICA deductions and for several states. Click this?_link?_to access the federal and state tax documentation. Please note that downloading and installing the programs does not automatically update the deduction descriptions/tables; it only provides the resources.?_See below for the highlights.

Tax tables along with the exemption amount (from $3,900 to $3,950) change for the Federal tax deduction.
Wage Base (threshold) for FICA/FICA-M in 2014 increases from $113,700 to $117,000 (maximum of $7,254). No change in the rate (remains at 6.2% for employee and employer). No change for Medicare/Medicare-M.
Tax tables along with the Allowance ($7,250 for Single and $7,750 for Married filing statuses) change for the State of New York. The Exemption Amount remains at $1,000.
Tax tables are replaced by a flat rate of 5.8 percent of adjusted gross for the State of North Carolina along with a change in the Allowance ($12,000 for Head of Household and $7,500 for all other filing statuses). The Exemption Amount in 2014 is $2,500. NC-4 (employee’s withholding allowance certificate) has been revised by the State and must be provided to employees in conjunction with this significant tax change.
Tax tables (single and married) along with increase in exemption amount (from $3,900 to $3,950) change for the State of North Dakota.
Unemployment wage base increases for several states in 2014 (Illinois, New York, North Carolina, Pennsylvania, and North Dakota).

For those of you who may have to complete a payroll before these programs are installed, it is not mandatory that the new tax tables, etc. be in place for that payroll. The requirement is that they must be installed/used as soon as feasible.

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