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Tax Change Implemented Pay Period (PP) 2024-16: UT

MEMORANDUM

DATE: July 24, 2024
TO: Federal Personnel and Payroll System User Group Representatives
FROM: Lisa Puente, Deputy Chief, Payroll Operations Division
SUBJECT: Tax Change Implemented Pay Period (PP) 2024-16: UT

Please share this information with all impacted employees. The following tax change was implemented in PP 2024-16. As a result, employees may see a change in their tax withholdings. As a reminder, tax changes are not retroactive to employees’ withholding.

State Tax

  • Utah Income Tax Withholding:
    • The state income tax withholding formula has changed effective June 1, 2024.
    • The income tax rate has changed from 4.65% to 4.55%.
    • Single filers:
      • The base allowance has increased from $415 to $440.
      • The wages exempt from tax credit reduction has increased from $8,371 to $8,826.
    • Married filers:
      • The base allowance has increased from $830 to $880.
      • The wages exempt from tax credit reduction has increased from $16,742 to $17,652.

You may execute Datamart queries to identify employees in affected state taxing areas. For Combined File Ad-Hoc query/analysis of applicable States: add STE Tax State 1 = (State Code above) or STE Tax State 2 = (State Code above) to the filter or prompt lines. Another option is the shared Datamart report titled “State Tax Code Report” (State Tax Code Query Now Available).

The Interior Business Center (IBC) Payroll website is updated frequently; you may view the state tax formulas here:  Federal, State, and Territorial Income Tax Withholding Formulas.

If there are any questions, please call the IBC Customer Support Center at 1-866-367-1272 or by email at Payroll_Helpdesk@ios.doi.gov.