Product updates

We’ve added a new set of validations to help ensure accurate payroll calculation and processing for all 2% shareholders in our system. Individuals who hold more than 2% of outstanding stock of a corporation are not permitted to receive pre-tax benefits such as Section 125 medical benefits (see here), and need to be designated as such via a company-defined attribute. The new set of validations reduce the need for corrections and will include:

• Employees can only be marked as 2% shareholders with an effective start date at the beginning of a calendar year
• Employees that have an active pre-tax health benefit associated with them cannot be marked as a 2% shareholder unless their pre-tax health benefits are either deleted or ended before their effective start date as a 2% shareholder
• When uploading historical payrolls, 2% shareholder earnings cannot be created for employees that are not 2% shareholders

We are making it easier for employers to navigate our wire policy when exceeding $100k in federal tax liability. Starting today, companies on accelerated payroll processing periods do not have to wire funds anymore, and only companies on 4-day processing periods with a pay date less than 4 days away will fall under this policy. We have updated our Help Center article to reflect this change.

The Montana Department of Revenue (DOR) has updated Form MW-4, Montana Employee ‘s Withholding and Exemption Certificate. The new form will now request a filing status along with options to indicate multiple jobs.  The agency is requiring a new form to be completed by all applicable employees. If an employee fails to fill out the new MW-4 form, the tax will be withheld as if the employee is single. The new form will be available in Console and Onboard by January 19th, 2024

The Iowa Department of Revenue (DOR) has updated Form W-4, Iowa Employee Withholding Allowance Certificate. The new form has updated the filing status and now requires the employee to provide an allowance amount instead of the number of allowances. If an employee fails to fill out the new Iowa W-4 form, the agency has provided a default calculation. The new form will be available in Console and Onboard by January 19th, 2024.