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Tax Changes Implemented Pay Period (PP) 2024-14: GA, ID, MA, OH, VA, and Locality in KY

MEMORANDUM

DATE: July 3, 2024
TO: Federal Personnel and Payroll System User Group Representatives
FROM: Christine Zertuche-Rocha, Chief, Payroll Operations Division
SUBJECT: Tax Changes Implemented Pay Period (PP) 2024-14: GA, ID, MA, OH, VA, and Locality in KY

Please share this information with all impacted employees. The following tax changes were implemented in PP 2024-14. As a result, employees may see a change in their tax withholdings.  As a reminder, tax changes are not retroactive to employees’ withholding.

State Taxes

  • Georgia Income Tax Withholding:
    • The state income tax withholding formula has changed effective July 1, 2024.
    • The dependent deduction has increased from $3,000 to $4,000.
    • The income tax rate on wages has changed from 5.49% to 5.39%.
    • The special formula for supplemental wages has been removed and replaced with the flat tax method. The flat tax rate for supplemental wages is now 5.49%.
    • Datamart Query: Tax State = 13
  • Idaho Income Tax Withholding:
    • The state income tax withholding formula has changed effective January 1, 2024.
    • The flat tax rate on supplemental wages has changed from 5.8% to 5.695%.
    • The annual deduction per exemption has increased from $3,534 to $3,600.
    • The Single and Married tax tables have changed.
    • Datamart Query: Tax State = 16
  • Massachusetts Income Tax Withholding:
    • The state income tax withholding formula has changed effective January 1, 2024.
    • A special formula has been added to calculate tax on supplemental wages.
      • The current 5% flat tax rate still applies to employees who will not be paid more than $1,053,750 for the year.
      • Employees whose estimated annual wages will exceed $1,053,750 require a special calculation to determine the correct tax rate for withholding.
        • Supplemental wages over total annual wages of $1,053,750 will be taxed at a rate of 9%
      • Datamart Query: Tax State = 25
  • Ohio Income Tax Withholding:
    • The state income tax withholding formula has changed effective July 1, 2024.
    • The highest tax rate in the table is changing from 4.41% to 3.80%.
    • Datamart Query: Tax State = 39
  • Virginia Income Tax Withholding:
    • The state income tax withholding formula has changed effective April 1, 2024.
    • The annual standard deduction amount has increased from $8,000 to $8,500.
    • Datamart Query: Tax State = 51

Local Tax

  • Kentucky Local Income Tax Withholding:
    • Florence:
      • The annual tax limit has increased from $3,204 to $3,372.
    • Datamart Query: Tax State = 21 City Code = 1150

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. See above for the applicable Local Tax State and/or Local Tax City Codes to add to the prompt lines (Occurrences – Other PE Pay).

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.