October State and Local Updates

Alabama

Unemployment Insurance Taxable Wage Base: The unemployment taxable wage base will remain the same at $8,000 for 2013.

California

Child Support Guidelines: On September 27, Governor Jerry Brown signed a bill (A.B. 2393) which increased the low-income adjustment to child support guidelines to $1,500.

Employers Forced to Spend More On Health Care: Beginning January 1, 2013, San Francisco employers with 20 to 99 employees will have to increase their Health Care Expenditure rate to $1.55 an hour, previously $1.46. Employers with 100 or more employees will increase to $2.33 an hour, previously $2.20.

Connecticut

FUTA Credit Reduction: Connecticut will be considered a Federal Unemployment Tax Act credit reduction state for 2012 tax purposes. The reduction rate is 0.6%.

Unemployment Insurance Taxable Wage Base: The unemployment insurance taxable wage base will remain the same at $15,000 for 2013.

Indiana

County Income Tax Rates: Income tax rates were changed in four counties in Indiana. The new rates are as follows;

  • Carroll County: 0.017039 for residents, 0.004 for nonresidents
  • Hancock County: 0.0165 for residents, 0.0045 for nonresidents
  • Perry County: 0.0156 for residents, 0.01185 for nonresidents
  • Starke County: 0.0171 for residents, 0.0146 for nonresidents

Kansas

Withholding Tables Issued: Beginning January 1, 2013, new wage-bracket and percentage method withholding tables will take affect. There will only be 2 income tax brackets, previously 3. The income tax rates will be;

  • 3 percent: for married joint filers with taxable income under $30,000 and other filers with a taxable income under $15,000
  • 4.9 percent: for married joint filer with income greater than $30,000 and other filers with income greater than $15,000
  • The standard deduction rate for married joint filers is increasing to $9,000 but will stay the same at $3,000 for single filers

State Supplemental Wage Tax: The department of revenue decreased the state supplemental wage tax rate to 4.5%, previously 5%. The new tax rate will be effective January 1, 2013.

Kentucky

Tax Amnesty Program: Employers can apply for an amnesty program with the Department of Revenue for delinquent taxes, penalties, fees and interest for tax periods between December 1, 2001 and October 1, 2011. Employers who are eligible will pay the taxes owed and half of interest. The Department of Revenue is waiving penalties, fees and the unpaid half of the interest.

Maryland

Unemployment Insurance Taxable Wage Base: For the year 2013, the unemployment insurance taxable wage base will stay the same at $8,500.

Montana

Minimum Wage Increase: On January1, 2013 the minimum wage rate will increase $7.80 an hour, previously $7.65.

Nevada

FUTA Reduction State: Nevada will be considered a FUTA reduction state for 2012. The reduction rate is 0.6%.

New Hampshire

Unemployment Insurance Surcharge: The 0.5% unemployment insurance emergency surcharge that was effective for the first three quarters of 2012 is being removed for the fourth quarter.

Ohio

Unemployment Insurance Taxable Wage: For the year 2013, the unemployment insurance taxable wage will remain at $9,000.

Minimum Wage Increase: On January 1, 2013 the Ohio minimum wage is increasing to $7.85 an hour, previously $7.70.

Oklahoma

Taxable Wage Base and New Employer Rate: For 2013, the taxable wage base will increase to $20,100, previously $19,100. The new employment rate will also increase to 2%, previously 1%.

Oregon

Minimum Wage Increase: Beginning January 1, 2013, the minimum wage in Oregon will increase to $8.95 an hour, previously $8.80 an hour.

Texas

Unemployment Insurance Taxable Wage Base: For the year 2013, the unemployment insurance taxable wage base will stay the same at $9,000.

Washington

Minimum Wage Increase: On January 1, 2013 the minimum wage is increases to $9.19 an hour, previously $9.04 an hour.

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Executive VP of Operations Con Van Roekel, Echo Group, Inc.

I wanted to tell you that we are very happy with the software and the support. We had 325 people in that payroll and we had no errors. Thank you very much for the help during the installation and training. I hope the future is as pleasant as the past.