Action Required:  For more information and action required steps, click here. (21012)

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

Action Required: 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 more information and action required steps, click here. (21009)

Action Required:  For more information and action required steps, click here. (21008)

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

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:

A new tax tracking type has been added for company contributions to an employee's Health Savings Account that are exempt from federal taxes and reported on Form W-2 in box 12 with code W. This new tax tracking type can be used beginning with tax year 2010. It has the taxability settings for all federal and state taxes supported in QuickBooks. For more information, click here.

Action Required: If you make company contributions to an employee's Health Savings Account that are exempt from federal taxes, you can set up a custom company contribution item. On the Tax Tracking Type screen of the payroll item wizard, choose HSA Co. (Nontaxable). On the Taxes screen use the default settings.

Note: If you have already set-up a custom Payroll Item or have a Payroll Item set-up using the tax tracking type Health Savings Acct (or HSA – DO NOT USE) for your company contributions to an employee's Health Savings Account, please click here for instructions on how to make the corrections in QuickBooks. (21006)

A new tax tracking type has been added for company contributions to an employee's Health Savings Account that are included in federal taxable wages and reported on Form W-2 in box 12 with code W. This new tax tracking type can be used beginning with tax year 2010. It has the taxability settings for all federal and state taxes supported in QuickBooks. For more information, click here.

Action Required: If you make company contributions to an employee's Health Savings Account that are included in federal taxable wages, you can set up a custom company contribution item. On the Tax Tracking Type screen of the payroll item wizard, choose HSA Co. (Taxable). On the Taxes screen use the default settings.

Note: If you have already set-up a custom Payroll Item for your company contributions to an employee's Health Savings Account that are included in federal taxable wages, please click here for instructions on how to make the corrections in QuickBooks. (21006)

A new tax tracking type has been added for employee contributions (elective deferrals) made through a Section 125 Cafeteria Plan that are considered exempt from wages for federal taxes and reported on Form W-2 in box 12 with code W. This new tax tracking type can be used beginning with tax year 2010. It has the taxability settings for all federal and state taxes supported in QuickBooks. For more information, click here.

(Note: This tax tracking type is not exempt from wages for some state taxes. Also, any annual limits will not be supported by the tax table. You will need to set up and maintain any annual limits yourself.) (21006)

Action required: If an employee is making contributions to their Health Savings Account through payroll deductions that are exempt from federal taxes, you can set up a custom deduction item. On the Tax Tracking Type screen of the payroll item wizard, choose HSA Emp. (Pretax). On the Taxes screen use the default settings.

Note: If you have already set-up a custom deduction Payroll Item to support the employee's pretax contributions to their Health Savings Account, please click here for instructions on how to make the corrections in QuickBooks. (21006)

A new tax tracking type has been added for employee contributions that are considered taxable wages for federal taxes. This type of employee contribution is not reported on Form W-2 in box 12. This new tax tracking type can be used beginning with tax year 2010. It has the taxability settings for all federal and state taxes supported in QuickBooks. For more information, click here.

(Note: This tax tracking type is not taxable for some state taxes. Also, any annual limits will not be supported by the tax table. You will need to set up and maintain any annual limits yourself.) (21006)

Action required: If an employee is making contributions to their Health Savings Account through payroll deductions that are included in federal taxable wages, you can set up a custom deduction item. On the Tax Tracking Type screen of the payroll item wizard, choose HSA Emp. (Taxable). On the Taxes screen use the default settings.

Note: If you have already set-up a custom deduction Payroll Item to support the employee's taxable contributions to their Health Savings Account, please click here for instructions on how to make the corrections in QuickBooks. (21006)