New IRS Tax Levy Exemption amounts were published in May. As expected, Arizona announced that they will use the new IRS exemption amounts for state levies also. Patches for all releases have been posted on My Oracle Support for these changes. See our Hot Topics document for links to the patches. The patches will also be included in Tax Update 18-C.
California Supreme Court Ruling on Overtime Pay. The California Supreme Court’s March 5, 2018 decision of Alvarado v. Dart Container Corp of California fundamentally changed how overtime is calculated for Flat Sum bonuses in the State of California. We are tracking this on Base Bug 27958001. We are analyzing the court’s decision, but have not yet determined the final scope of changes needed to meet the new requirements. We do not have a target date at this time.
A new Oregon Statewide Transit Tax goes into effect July 1, 2018. Oregon HB 2017 requires a statewide transit tax of 0.001 on all wages paid to Oregon residents, and on wages paid to non-residents for work in Oregon. We are tracking this on Base Bug 27507861. In order to meet the requirements of this bill, the delivered patch will require multiple object modifications and a new Tax Class Code. Patches for all releases will be delivered in standalone postings and the patches will also be included in Tax Update 18-C.
On April 27, Idaho published State withholding changes announcing a new requirement to add 2 allowances for any employees who currently claim single and more than 0 allowances. We are tracking on Base Bug 27950851, and awaiting final clarification on changes needed from the State of Idaho. Our early analysis indicates we may need to provide an updated PDF W-4 withholding form for Idaho. Idaho had previously followed the Federal W-4 values on the state withholding form. If needed, we will track the W-4 form change on a separate bug.
Kentucky has amended their six tax brackets to a single 5% flat rate. We are tracking this change on Base Bug 27996260. Patches for all releases will be delivered in standalone postings and patches will also be included in Tax Update 18-C.
The Spanish language version of the 2018 U.S. Federal W-4 form will be delivered with Tax Update 18-C. We are tracking this change on Base Bug 27796108.