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Treasury Changes Timing for Processing Direct Deposits

Employees paid by IBC will receive their pay checks on their EFT pay date.

Tax Changes Implemented Pay Period (PP) 2024-20: AR and KS

MEMORANDUM

DATE: September 25, 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) 2024-20: AR and KS

Please share this information with all impacted employees. The following tax changes were implemented in PP 2024-20. 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

  • Arkansas 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 4.4% to 3.9%.
    • The standard tax table has been changed.
  • Kansas Income Tax Withholding:
    • The state income tax withholding formula has changed effective July 1, 2024.
    • The annual allowance per exemption claimed had increased from $2,250 to $2,320.
      • This applies to the number of additional dependents claimed.
    • A new annual personal allowance has been added.
      • This applies to the first and second number of exemptions based on the employee’s filing status and total exemptions claimed.
    • The number of additional dependents is equal to the total number of exemptions claimed minus the number of exemptions used to calculate the new personal allowance.
    • The Single, Married, and Head of Household withholding tables have changed.

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 contact the IBC Customer Support Center at Payroll_Helpdesk@ios.doi.gov or 1-866-367-1272.

 

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