Tax Table Changes Included in this Payroll Update  
 
Federal Tax Changes - 2010 Changes to Tax Tracking Types
State and Local Tax Changes - 2010    
 
  Federal Tax Changes for QuickBooks 2007  
 
Federal Withholding
  New Federal income tax withholding tables, effective 1/1/2010. (21001)
 

New Non-resident Alien withholding tables, effective 1/1/2010. (21001)

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." QuickBooks does not support this separated filing status. (21001)

   
 
  State/Local Tax Changes for QuickBooks 2007  
 
  If you are looking for information on particular state taxes and do not see it here, there is more information available by clicking here.
Alabama Delaware Iowa Montana North Carolina South Dakota
Alaska Florida Kentucky Nevada North Dakota Utah
Arizona Hawaii Louisiana
New Hampshire Oklahoma Vermont
Arkansas Idaho Maine New Jersey Oregon Washington
California Illinois Minnesota New Mexico Pennsylvania Wyoming
District of Columbia Indiana Missouri New York Rhode Island    
 
 
  Alabama
  Due to the Federal withholding tables changing, there may be a difference in Alabama withholding calculations, effective 1/1/2010.  (21001)
     
  Alaska
  Wage limit for state unemployment insurance (UI) increased to $34,100 from $32,700. (21001)
     
  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. (21001)
 

Action Required:  For more information and action required steps, click here. (21001)

IMPORTANT: New withholding rates must be selected for each applicable employee in order for Arizona withholding tax to continue to calculate in 2010.

     
  Arkansas
  To accurately reflect the account number format for state withholding assigned by the agency, verify the format is 99999999-ZZZ. (21006)
 

Action Required for Basic Payroll, Standard Payroll and Enhanced Payroll Subscribers: If you need to modify the account number reflected in your company file, please take the following steps: Refer to Form AR941M. Enter the current Account Number by selecting AR - Withholding from the Payroll Item List, click Next to get to the Agency for employee-paid liability screen. Enter the current Account ID in the Enter the number that identifies you to agency box. Continue to click Next, and then click Finish. (21006)

 

Action Required for QuickBooks Assisted Payroll Customers: Do not change your state identification number to your new Account ID (99999999-ZZZ) in QuickBooks. Leave the 11-digit FEIN (999999999-00). Once you have been notified of your new Account ID, fax your new Account ID to (866) 293-1944. Intuit Payroll is working with the Department to convert all customers to the new 11-digit Account ID. Once this process is complete, the 11-digit Account ID will be pushed back to QuickBooks. (21006)

  Wage limit for state unemployment insurance (UI) increased to $12,000 from $10,000. (21001)
     
  California
  New withholding tables effective 1/1/2010. (21001)
  Wage limit for state disability insurance (SDI) increased to $93,316 from $90,669. (21001)
     
  District of Columbia
  New withholding tables effective 1/1/2010. (21004)
     
  Delaware
  New withholding tables effective 1/1/2010. (21001)
     
  Florida
  Wage limit for state unemployment insurance (UI) increased to $8,500 from $7,000. (21001)
     
  Hawaii
QuickBooks has modified the Filing Status selections that are displayed on the employee's withholding State Tax Information slide in Payroll Setup and the Employee State Taxes tab in the Employee Center. These modifications were implemented to reflect the revised Employee Withholding Allowance and Status Certificate, Form HW-4 (Rev. 2009) ; Line 3, Marital Status. For more information click here and select Hawaii from the list.
 

Action Required:  For more information and action required steps, click here.

  Wage limit for state disability insurance (SDI) increased to $46,888.40 from $45,639.88. (21002)
  Wage limit for state unemployment insurance (UI) and Employment and Training Assessment surcharge (E & T Assessment) increased to $38,800 from $13,000. (21001)
     
  Idaho
  Wage limit for state unemployment insurance (SUI) and Workforce Development Fund (WDF) increased to $33,300 from $33,200. (21002)
     
  Illinois
  Wage limit for state unemployment insurance (UI) increased to $12,520 from $12,300. (21001)
     
  Indiana
  Wage limit for state unemployment insurance (UI) increased to $9,500 from $7,000. (21001)
     
  Iowa
  Due to the Federal withholding tables changing, there may be a difference in Iowa withholding calculations, effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI), Admin. Surcharge, and Reserve Fund increased to $24,500 from $23,700. (21001)
     
  Kentucky
  New withholding tables effective 1/1/2010. (21002)
     
  Louisiana
 

Wage limit for state unemployment insurance (UI) increased to $7,700 from $7,000. (21001)

   
  Maine
  New withholding tables effective 1/1/2010. (21001)
   
  Minnesota
  New withholding tables effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI) and Workforce Enhancement Fee (WEF) increased to $27,000 from $26,000. (21001)
   
  Missouri
  New withholding tables effective 1/1/2010. (21004)
  Due to the Federal withholding tables changing, there may be a difference in Missouri withholding calculations, effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI) increased to $13,000 from $12,500. (21001)
     
  Montana
  Wage limit for state unemployment insurance (UI) and Admin. Fund Tax (AFT) increased to $26,000 from $25,100. (21001)
     
  Nevada
  Wage limit for state unemployment insurance (UI) and Career Enhancement Program (CEP) increased to $27,000 from $26,600. (21001)
     
  New Hampshire
  Wage limit for state unemployment insurance (UI) and Administrative Contribution (AC) increased to $10,000 from $8,000. (21001)
     
  New Jersey
  New withholding tables effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI), Workforce Development/Supplemental Workforce Fund (WF/SWF), Health Care Subsidy (HCS), Family Leave Insurance (FLI), and state disability insurance (SDI) increased to $29,700 from $28,900. (21001)
     
  New Mexico
 
Wage limit for state unemployment insurance (UI) and Trust Fund Tax (TFT) decreased to $20,800 from $20,900. (21001)
     
  New York
  New withholding tables effective 1/1/2010. (21001)
     
  North Carolina
  Wage limit for state unemployment insurance (UI) increased to $19,700 from $19,300. (21001)
     
  North Dakota
  Wage limit for state unemployment insurance (UI) increased to $24,700 from $23,700. (21002)
  New withholding tables effective 1/1/2010. (21001)
     
  Oklahoma
  New withholding tables effective 1/1/2010. (21002)
  Wage limit for state unemployment insurance (UI) increased to $14,900 from $14,200. (21001)
     
  Oregon
  Due to the Federal withholding tables changing, there may be a difference in Oregon withholding calculations, effective 1/1/2010. (21001)
  Oregon Lane Transit District rate increased to 0.66% from 0.65% effective 1/1/2010. (21001)
  Oregon Tri-Met Transit District rate increased to 0.6818% (rounded to 0.682% in QuickBooks) from 0.6718% (rounded to 0.672% in QuickBooks) effective 1/1/2010. QuickBooks supports only 3 decimal places, so the rate has been rounded up 0.682%. (21001)
  Wage limit for state unemployment insurance (UI) has increased to $32,100 from $31,300. (21001)
     
  Pennsylvania
  Employee state unemployment insurance (UI) rate increased to 0.08% from 0.06%, effective 1/1/2010. (21001)
   
  Rhode Island
  New withholding tables effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI) and Job Development Fund has increased to $19,000 from $18,000. (21001)
  Wage limit for state disability insurance (SDI) has increased to $57,900 from $56,000. (21001)
  State disability insurance (SDI) tax rate decreased to 1.2% from 1.5% effective 1/1/2010. (21001)
     
  South Dakota
  A Surcharge tax has been enacted effective 10/1/2009 by the state and is now a part of the 2010 tax table. Intuit QuickBooks Payroll subscribers can setup this new tax beginning 1/1/2010. The rate is set by the agency for all liable employers and has the same wage limit as unemployment insurance of $10,000. (21004)
 

Action Required: When you select Pay Employees, an Add New Tax Wizard feature will appear in order to assist you with setting up this new surcharge tax. The Wizard detects that there is a new surcharge tax in the tax table for an employee who is subject to State Unemployment Insurance for South Dakota. Intuit recommends that you use the Wizard to setup the new Surcharge tax, however an option to cancel out of the Wizard is available. If you choose to cancel out of the Wizard, no changes will be made to your file. (21004)

If you choose not to use the Add New Tax Wizard, take the following steps:

If you have included the Surcharge tax rate into your unemployment insurance rate, edit the SD - Unemployment Company payroll item and enter only your UI Contribution rate received from the state in the four boxes, then add a new other tax payroll item and choose SD - Surcharge . Select the applicable rate from the list, and set up the tax on the subject employees by choosing the Other tax tab and selecting SD – Surcharge from the drop down under the Item Name column. (21004)
  Wage limit for state unemployment insurance (UI) and Investment Fee has increased to $10,000 from $9,500. (21001)
     
  Utah
  Wage limit for state unemployment insurance (UI) increased to $28,300 from $27,800. (21001)
   
  Vermont
  New withholding tables effective 1/1/2010. (21001)
  Wage limit for state unemployment insurance (UI) increased to $10,000 from $8,000. (21001)
   
  Washington
  Wage limit for state unemployment insurance (UI) and Employment Admin. Fund increased to $36,800 from $35,700. (21001)
   
  Wyoming
  Wage limit for state unemployment insurance (UI) increased to $22,800 from $21,500. (21001)
       
  Changes to Tax Tracking Types for QuickBooks 2007  
 
Company Paid Dependant Care Illinois and Pennsylvania Withholding and Unemployment default taxability settings for Co. Paid Dep. Care have been updated
  Action Required: For more information and action required steps for Illinois, click here. For more information and action required steps for Pennsylvania, click here.
     
Dependant Care FSA Withholding and Unemployment default taxability settings for Dependent Care FSA for Alaska, Illinois and Pennsylvania, have been updated.
  Action Required: For more information and action required steps for Alaska, click here. For more information and action required steps for Illinois, click here. For more information and action required steps for Pennsyilvania, click here.
     
SCorp Paid Medical Premium Pennsylvania Withholding and Unemployment default taxability settings for S Corp Medical or medical insurance premiums paid by S Corporations for 2% or more shareholders have been updated.
  Action Required: For more information and action required steps, click here.


Disclaimer: The information contained on these pages is meant to provide general information about the payroll process. It is not intended to provide comprehensive tax or legal advice and does not modify or extend the service guarantee to any Intuit product or service. You are responsible for consulting with your own professional tax advisor, accountant, and/or attorney concerning your business' specific concerns.