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December 2024 Compliance Updates: Federal Updates and New State Taxes

Dec 20, 2024 11:17:00 AM

Federal Updates

FUTA Credit Reduction – 2024

States that are charged with a FUTA credit reduction: California, New York & Virgin Islands.

New Tax Updates

Delaware – Paid Family Leave

ETA: Contribution begin January 1, 2025; Benefits begin January 1, 2026                                                                                                                                    

Participating in Delaware Paid Leave is mandatory for most businesses with 10 or more employees working in Delaware.

The tax code default setup will be the full contribution rate assigned to the employer (0.8% for employers with 25 or more employees; 0.32% for employers with 10-24 employees). If an employer chooses to charge the employee for half of the tax, as permitted by the state, an update will be required to the account. Adjustments to the contribution split must be made within the current quarter. Once the quarter is closed, adjustments to change the split of the contribution will not be available.

Delaware Paid Leave Is Coming - Delaware Department of Labor


Maine – Paid Family Leave

ETA: Contribution begin January 1, 2025; Benefits begin May 1, 2026

Employers with 15 or more employees are required to participate in the program.

Contribution rate: 1%

0.5% to the Employees and 0.5% to the Employer. Employers must notify their employees before withholding begins. The default setup will be the split tax as established by the agency.

Employer poster: PaidFamilyMedicalLeave.pdf

Registration: January 6th 2025, all employers will be required to register in the Paid Leave Portal. Payroll service providers can be designated during the registration process.

RegisteringforEmployers.pdf

Employer Guide:

Employer’s Guide to the Maine Employment Security Law

MDOL: Paid Family and Medical Leave

State Updates

Colorado

Aurora OPT – repealed

Effective 1/01/25 the Aurora CO Occupational Privilege Tax is repealed. The December 2024 and 4th quarter 2024 returns will be the last returns filed. The filings are due Jan. 31, 2025. The city will continue to accept amended returns for any periods prior to January 2025 and refund claims.

This tax code will be inactivated as of 12/31/24 on all impacted employers to prevent any 2025 activity.

Taxes - City of Aurora

Virginia

SUI Rate

Virginia has a new administrative fee included in the state unemployment tax rate. The administrative fee will account for 0.05% of the SUI tax contribution. Tax rate notices have been mailed out by the agency this month, December. The administrative fee is not considered part of an employer’s state unemployment taxes and may not be used to calculate an employer’s federal unemployment tax liability, according to the budget amendment.

A copy of the budget amendment can be found here: bgp4

Employer Tax Rate Notices for 2025 _ Virginia Employment Commission