[author: Rena Pirsos, XpertHR Legal Editor]
The following nine states have issued revised tax tables and other important information needed for calculating employee withholding effective for wages paid on and after January 1, 2013, unless noted otherwise.
California. The wage-bracket (Method A) and exact calculation (Method B) withholding tables for 2012 and 2013 have been revised due to an increase in income tax rates retroactive to January 1, 2012. Employers should use the revised 2012 tables immediately, rather than withhold retroactively or withhold an additional amount. The 2013 tables should be used for wages paid on and after January 1, 2013. Employers should not use the 2013 tables that were issued this past October. Also for 2013, the supplemental wage withholding rate will remain 6.6 percent and the tax rate for stock options and bonus payments will remain 10.23 percent. The tables are available online in the 2013 California Employer's Guide.
Kansas. The wage-bracket and percentage method withholding tables have been revised to reflect reduced income tax rates and the replacement of the three-tiered income tax rate structure with a two-tiered structure. In addition, the supplemental wage withholding rate has been reduced to 4.5 percent from 5 percent. The standard deduction will increase to $9,000 for married joint filers (from $6,000) and head of household filers (from $4,500); it remains at $3,000 for single filers. The tables may be downloaded from the Kansas Department of Revenue website.
Kentucky. The wage-bracket withholding tables and computer formula have been revised. The standard deduction for 2013 will increase to $2,360 (from $2,290); employers that compute withholding using the computer formula should use the current year standard deduction amount. The tables may be downloaded from the Kentucky Department of Revenue website.
Maine. The percentage method withholding tables have been revised and may be downloaded from the Maine Revenue Services website. The number of tax brackets has been reduced from four to three. The 2013 standard deduction amounts are $6,100 for single taxpayers and $10,150 for married joint filers, and the 2013 personal exemption amount is $3,900. All of these amounts conform to the projected federal amounts.
Michigan. Effective for wages paid on or after October 1, 2012, the wage-bracket withholding tables have been revised due to a decrease in the income tax withholding rate from 4.35 percent to 4.25 percent. The personal exemption amount is $3,950. The tables may be downloaded from the Michigan Department of Treasury website.
Minnesota. The wage-bracket withholding tables and computer formula have been revised and may be downloaded from the Minnesota Department of Revenue website.
Nebraska. The wage-bracket and percentage method withholding tables have been revised to reflect reductions in the personal income tax rates. The tables can be found in the 2013 Circular EN on the Nebraska Department of Revenue website.
New York. The New York State and Yonkers resident withholding tax tables and methods have been updated to reflect cost of living adjustments made to the state personal income tax rate schedules. New York State withholding tax amounts are calculated using Publication NYS-50-T-NYS, New York State Withholding Tax Tables and Methods (1/13). The Yonkers withholding tax amounts are calculated using Publication NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods (1/13). Form IT-2104, Employee's Withholding Allowance Certificate (2013), is also being revised to reflect the tax rate schedule changes. The New York State Department of Taxation and Finance intends to post the 2013 form to its website as soon as it is available.
North Dakota. The wage-bracket and percentage method withholding tables have been revised and are available for downloading from the Office of the State Tax Commissioner website. The supplemental wage withholding tax rate will remain percent.
Payroll > Withholding Taxes > State Income Tax Withholding