Tax Table Changes Included in this Payroll Update  
 
Federal Tax Changes - 2011 Changes to Tax Tracking Types
State and Local Tax Changes - 2011    
 
  Federal Tax Changes for QuickBooks 2008  
 
Federal Withholding
  New Federal income tax withholding tables effective 1/1/2011. (21102)
  New Non-resident Alien withholding tables effective 1/1/2011. (21102)
  For more information, click here.
 
Social Security
  Social Security employee tax rate decreased to 4.2% from 6.2% effective 1/1/2011. For more information, click here. (21102)
 

 

Advance Earned Income Credit (AEIC)
 

On August 10, 2010, President Obama signed H.R. 1586 into law (Public Law No. 111-226). Included in the act is a provision that repeals the Advance Earned Income Credit (AEIC). Starting in tax year 2011, the option for advance payment has been eliminated. (21101)

  Action Required: For more information and action required steps, click here. (21101)
   
 
  State/Local Tax Changes for QuickBooks 2008  
 
  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 Idaho Massachusetts Nevada Oregon Vermont
Alaska Illinois Michigan New Hampshire Puerto Rico Washington
Arizona Indiana Minnesota New Jersey Rhode Island Wisconsin
California Iowa Mississippi New Mexico South Carolina Wyoming
Colorado Kentucky Missouri New York South Dakota    
Dist of Columbia Maine Montana North Dakota Texas    
Hawaii Maryland Nebraska Oklahoma Utah    
 
 
  Alabama
  Due to the Federal withholding tables changing, there may be a difference in Alabama withholding calculations, effective 1/1/2011. (21102)
     
  Alaska
  Wage limit for state unemployment insurance (UI) increased to $34,600 from $34,100. (21101)
  Unemployment insurance rate for employees increased to 0.58% from 0.50%. (21101)
  Vendor payable name changing to DOLWD Employment Security Tax from AK Dept. of Labor and Workforce Dev. (21101)
 

Action Required: If you need to modify the vendor payable name for unemployment insurance and related surcharges, please click here for the necessary steps. (21101)

     
  Arizona
  New withholding tables effective 1/1/2011. The withholding rates are changing to 0.8%, 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, and 5.1% from 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, and 5.1%, which are based on a percentage of gross taxable wages. (21101)
 

Action Required: For more information and action required steps, click here. (21101)

     
  California
  New withholding tables effective 1/1/2011. (21101)
  State disability insurance (SDI) tax rate increased to 1.2% from 1.1% effective 1/1/2011. (21101)
     
  Colorado
  New withholding tables effective 1/1/2011. (21102)
     
  District of Columbia
  New withholding tables effective 1/1/2011. (21104)
     
  Hawaii
Employment and Training Assessment (E&T Assessment) rate changing to 0.02% from 0.01% effective 1/1/2011.
  Action Required:  For more information and action required steps, click here.
  New withholding tables effective 1/1/2011. (21102)
  Wage limit for state disability insurance (DI) decreased to $45,983.08 from $46,888.40. (21101)
  Wage limit for state unemployment insurance (UI) and Employment and Training Assessment surcharge (E & T Assessment) decreased to $34,200 from $34,900. (21101)
     
  Idaho
  New withholding tables effective 1/1/2011. (21102)
     
  Illinois
  New withholding tables effective 1/1/2011. (21104)
  Wage limit for state unemployment insurance (UI) increased to $12,740 from $12,520. (21101)
     
  Indiana
  Wage limit for state unemployment insurance (UI) increased to $9,500 from $7,000. (21101)
     
  Iowa
  Due to the Federal withholding tables changing, there may be a difference in Iowa withholding calculations, effective 1/1/2011. (21102)
  Wage limit for state unemployment insurance (UI), Administrative Surcharge, and Reserve Fund increased to $24,700 from $24,500. (21101)
     
  Kentucky
  New withholding tables effective 1/1/2011. (21101)
   
  Maine
  New withholding tables effective 1/1/2011, which include the non-resident alien withholding formula. For more information, click here. (21102)
     
  Maryland
  The county tax rate for Baltimore City will be changing to 3.20% from 3.05%, beginning 1/1/2011. (21102)
  Action Required:  For more information and action required steps, click here. (21102)
  New withholding tables effective 1/1/2011. (21101)
   
  Massachusetts
 

To accurately reflect the account number format for unemployment insurance assigned by the agency, please verify the format is 99999999. (21101)

 

Action Required: If you need to modify the account number reflected in your company file for unemployment insurance and related surcharges, please click here for the necessary steps. (21101)

   
  Michigan
  New withholding tables effective 1/1/2011. (21101)
  Unemployment Insurance Solvency Tax implemented for calendar year 2011. (21101)
 

Action Required: For more information and action required steps, click here. (21101)

   
  Minnesota
  New withholding tables effective 1/1/2011. (21101)
  Federal Loan Assessment rate of 2.00% implemented for calendar year 2011. (21101)
 

Action Required: For more information and action required steps, click here. (21101)

   
  Mississippi
  Wage limit for state unemployment insurance (UI) and Workforce Enhancement Training (WET) Contribution increased to $14,000 from $7,000. (21101)
  Vendor payable name changing to Mississippi Department of Revenue from Mississippi State Tax Commission. (21101)
 

Action Required: If you need to modify the vendor payable name, please click here for the necessary steps. (21101)

     
  Missouri
  New withholding tables effective 1/1/2011. (21104)
  Due to the Federal withholding tables changing, there may be a difference in Missouri withholding calculations, effective 1/1/2011. (21102)
     
  Montana
  Wage limit for state unemployment insurance (UI) and Admin. Fund Tax (AFT) increased to $26,300 from $26,000. (21101)
     
  Nebraska
  To accurately reflect the account number format for state withholding assigned by the agency, verify the format is 21-999999999 or 999999999. (21101)
     
  Nevada
  Wage limit for state unemployment insurance (UI) and Career Enhancement Program (CEP) decreased to $26,600 from $27,000. (21101)
     
  New Hampshire
  Wage limit for state unemployment insurance (UI) and Administrative Contribution (AC) increased to $12,000 from $10,000. (21101)
     
  New Jersey
  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) decreased to $29,600 from $29,700. (21101)
     
  New Mexico
 

QuickBooks Payroll has inactivated the New Mexico Trust Fund Tax (NM – Trust Fund) Payroll Item. With Payroll Update 21104 and later, the NM – Trust Fund Payroll Item has been set to a zero percent (0%) rate and a zero wage limit, effective 1/1/2011. (21104)

 

Action Required: For more information and action required steps, click here. (21104)

  New withholding tables effective 1/1/2011. (21102)
  Wage limit for state unemployment insurance (UI) and Trust Fund Tax (TFT) increased to $21,900 from $20,800. (21101)
     
  New York
  New withholding tables for New York City Resident effective 1/1/2011. (21101)
     
  North Dakota
  New withholding tables effective 1/1/2011. (21102)
  Wage limit for state unemployment insurance (UI) increased to $25,500 from $24,700. (21101)
     
  Oklahoma
  New withholding tables effective 1/1/2011. (21102)
  Wage limit for state unemployment insurance (UI) increased to $18,600 from $14,900. (21101)
     
  Oregon
  New withholding tables effective 1/1/2011. (21104)
  Due to the Federal withholding tables changing, there may be a difference in Oregon withholding calculations, effective 1/1/2011. (21102)
  Wage limit for state unemployment insurance (UI) increased to $32,300 from $32,100. (21101)
  Oregon Lane Transit District (LTD) rate increased to 0.67% from 0.66% effective 1/1/2011. (21101)
  Oregon Tri-Met Transit District rate increased to 0.6918% (rounded to 0.692% in QuickBooks) from 0.6818% (rounded to 0.682% in QuickBooks) effective 1/1/2011. QuickBooks supports only 3 decimal places, so the rate has been rounded up to 0.692%. (21101)
     
  Puerto Rico
  New withholding tables effective 1/1/2011. (21106)
 

Action Required: For more information and action required steps, click here. (21106)

     
  Rhode Island
  New withholding tables effective 1/1/2011. (21101)
  Wage limit for state disability insurance (DI) increased to $58,400 from $57,900. (21101)
  State disability insurance (DI) rate increased to 1.3% from 1.2% effective 1/1/2011. (21101)
  Job Development Fund (JDF) rate increased to 0.51% from 0.21% effective 1/1/2011. (21101)
   
  South Carolina
  Wage limit for state unemployment insurance (UI) and Contingency Assessment increased to $10,000 from $7,000. (21101)
  Vendor payable name changing to SC Department of Employment and Workforce from SC Emp Security Attn. Contribution Section. (21101)
 

Action Required: If you need to modify the vendor payable name for unemployment insurance and related surcharges, please click here for the necessary steps. (21101)

  Contingency Surcharge rate changed to a variable rate from a flat rate of 0.06%, and will now include the Interest Assessment Rate. (21101)
 

Action Required: For more information and action required steps, click here. (21101)

     
  South Dakota
  Wage limit for state unemployment insurance (UI) and Investment Fee and Surcharge has increased to $11,000 from $10,000. (21101)
     
  Texas
  Vendor payable name changing to Texas Workforce Commission from Cashier-Texas Workforce Commission. (21101)
 

Action Required: If you need to modify the vendor payable name for unemployment insurance and related surcharges, please click here for the necessary steps. (21101)

     
  Utah
  To accurately reflect the account number format for state withholding assigned by the agency, verify the format is 99999999-999-WTH. (21102)
  Action Required:  If you need to modify the account number reflected in your company file, please click here for the necessary steps. (21102)
  Wage limit for state unemployment insurance (UI) increased to $28,600 from $28,300. (21101)
   
  Vermont
  New withholding tables effective 1/1/2011. (21104)
  Wage limit for state unemployment insurance (UI) increased to $13,000 from $10,000. (21101)
     
  Washington
  Wage limit for state unemployment insurance (UI) and Employment Administrative Fund has increased to $37,300 from $36,800. (21101)
   
  Wisconsin
  Wage limit for state unemployment insurance (UI) increased to $13,000 from $12,000. (21101)
  To accurately reflect the account number format for unemployment insurance assigned by the agency, please verify the format is 999999-###-9. (21101)
   
  Wyoming
  Wage limit for state unemployment insurance (UI) decreased to $22,300 from $22,800. (21101)
   
  Changes to Tax Tracking Types for QuickBooks 2008  
 

HSA Co. (Nontaxable)

Withholding default taxability setting for HSA Company (Nontaxable), for Wisconsin has been updated.
  Action Required: For more information and action required steps on Wisconsin, click here.
HSA Emp. (Pretax) Withholding default taxability setting for HSA Employee (Pretax), for Wisconsin has been updated.
  Action Required: For more information and action required steps on Wisconsin, click here.
  SIMPLE IRA Unemployment default taxability settings for SIMPLE IRA, for Oklahoma have been updated. (21104)
  Action Required: For more information and action required steps on Oklahoma, click here. (21104)
 


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.