2020 Tax Changes, Resources and GP Updates

Are you up-to-date with the 2020 tax changes? Complex payroll administration is a major headache for many growing businesses. To help you out, we’ve summarized a few of the tax changes that may affect you this year.

Federal Payroll Tax Updates for 2020

The minimum salary level for White Collar exemptions increased from $455/week to $684/week; the social security maximum wage base increased to $137,700.

The 2020 W-4 has been significantly redesigned. However, employees aren’t required to fill out a new form unless they are starting a new job in 2020. For more information about the 2020 W-4, watch our webinar regarding the changes to the W-4, or read our blog 2020 IRS Form W-4 – What You Need to Know.

State Payroll Tax Updates for 2020

White Collar Exemptions
States which increased minimum salaries for White Collar exemptions include Alaska, California, Maine, New York, Washington, and Colorado. If you have workers in these states, be sure to double-check whether this changes the exemption status of any of your employees.

W-4 Updates
Delaware, Rhode Island, Vermont and South Carolina have state-specific forms available for state withholding.

Withholding Table Updates
Several states have updated their withholding tables: Connecticut, Massachusetts, Minnesota, Rhode Island, Arkansas, California, Illinois, Indiana (County Rates), Maine, Michigan, Missouri, North Carolina, Oregon, and South Carolina.

These are just a few of the state-specific tax updates for 2020. If you’re a Dynamics GP user, be sure you understand the year-end tax updates for your software solution.

Watch the on-demand recording of our Payroll User Group, “2020 Tax Updates”