Tax Release Notes 202601-1

The following tax updates have been made and are now available.

 

Millennium users can sync with MPAY for the changes. Please remember to restart your Process Servers after performing a SyncUP to MPAY.

 

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Please Note: The following items are under development and will be included in future tax releases:

 

E-File Updates:

 

  • 2025 940 Federal Unemployment Annual Schema Update

    • New schema version 2025v4.0. This version includes major updates to support Direct Deposit elements, along with new data elements for IP Address, Device ID, and Vendor Control Number. A separate communication with more information will be sent shortly.

  • 2025 944 Annual Federal Tax Return Schema Update

    • New schema version 2025v4.0. This version includes major updates to support Direct Deposit elements, along with new data elements for IP Address, Device ID, and Vendor Control Number. A separate communication with more information will be sent shortly.

 

Form Updates:

 

  • 2025 1099-NEC and 1099-MISC

    • Forms are being updated to correctly display state withholding in scenarios where a recipient receives both a 1099-NEC and a 1099-MISC with state withholding.

  • 2025 Nebraska Annual Reconciliation of Income Tax Withheld

    • Form reference number update

 

Rate Updates:

 

  • 2026 Michigan withholding tax tables

 

The current planned release schedule can be viewed on our website and is subject to change.

 

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The current release includes the following changes:

 

Development Tags

 

Form Updates:

 

  • 2025 District of Columbia Annual Withholding for Forms 1099

  • 2025 Montana Annual W-2 1099 Withholding Tax Reconciliation

  • 2025 Ohio CCA Reconciliation of Municipal Tax Withheld

  • 2025 West Virginia Withholding Year End Reconciliation

 

E-File Updates:

 

  • 2025 1099NEC MMREF Update

  • 2025 Delaware Annual Reconciliation

  • Texas Unemployment Wage file

 

Tax Updates:

 

  • 2026 Arkansas Withholding Tax Tables

  • 2026 Delaware Unemployment Wage Base and Rate

  • 2026 Idaho Unemployment Wage Base and Rate

  • 2026 Illinois Withholding Tax Tables

  • 2026 Kentucky Unemployment Wage Base

  • 2026 Louisiana Withholding Tax Tables

  • 2026 Maine Unemployment Tax Rates

  • 2026 Montana Unemployment Wage Base

  • 2026 Ohio Local City of Gallipolis Municipal Income Tax

  • 2026 New Mexico Unemployment Wage Base

  • 2026 New York Unemployment Wage Base

  • 2026 Oklahoma Unemployment Wage Base

  • 2026 Rhode Island Unemployment Wage Base and Rate

  • 2026 Washington Unemployment Wage Base

 

System Updates:

 

  • 2026 State Minimum Wage Rate

 

Tax Development Tags

 

Form: 2025 District of Columbia Annual Withholding for Forms 1099 (M3-2958)

 

The District of Columbia's Annual Return for Withholding Reported on 1099s, form FR-900NP, has been updated to include only 1099 information.

 

Form: 2025 Montana Annual W-2 1099 Withholding Tax Reconciliation (M3-2958)

 

The 2025 Montana Annual W-2 1099 Withholding Tax Reconciliation return (MW-3) has been updated.

 

Form: 2025 Ohio CCA Reconciliation of Municipal Tax Withheld (M3-2933)

 

The 2025 Ohio CCA (Central Collection Agency) Reconciliation of Municipal Income Tax Withheld, has been updated.

 

Please download 25OHCCA1.pcl file from the SFTP site under "Tax Forms\Tax Forms for Tax Release 202601-1\" and place the file in your local M3 Tax Forms folder prior to generating the return.

 

Form: 2025 West Virginia Withholding Year End Reconciliation (M3-2844)

 

The 2025 West Virginia Withholding Year End Reconciliation return IT-103 has been updated.

 

Please download 25WVT1031.pcl file from the SFTP site under "Tax Forms\Tax Forms for Tax Release 202601-1\" and place the file in your local M3 Tax Forms folder prior to generating the return.

 

E-File: 2025 1099NEC MMREF Update (M3-2822)

 

The 1099-NEC MMREF has been updated. Golden parachute payments can no longer be filed through the IRSClosed Internal Revenue Service FIRE system. Any 1099-NEC form that includes a golden parachute payment must be filed on paper or through the IRS IRIS system.

 

When a golden parachute payment is detected, the record will be skipped during e-filing and a warning message will be displayed in the job queue.

 

E-File: 2025 Delaware Annual Reconciliation (M3-2918)

 

A new electronic file (DEANNEFILE) has been added for the 2025 Delaware Annual Reconciliation.

 

E-File: Texas Unemployment Wage file (M3-2913)

 

The Texas unemployment wage e-file (TXSUIWEFILE) has been reinstated.

 

Tax: 2026 Arkansas Withholding Tax Tables (M3-2962)

 

The Arkansas withholding tax tables have been updated effective 01-01-2026.

 

Tax: 2026 Delaware Unemployment Wage Base and Rate (M3-2987)

 

The Delaware unemployment (DESUI), the special administrative fund (DEAST), and the employment and training tax (DEETT) wage base limit has been updated to $14,500.00 effective 01-01-2026.

 

The Delaware employment and training tax (DEETT) rate has been updated effective 01-01-2026.

 

New employer rate: 0.11%

 

Tax: 2026 Idaho Unemployment Wage Base and Rate (M3-2983)

 

The Idaho unemployment (IDSUI), the administrative reserve (IDAST) and the workforce development (IDWD) wage base limit has been updated to $58,300.00 effective 01-01-2026.

 

The following rates have been updated effective 01-01-2026.

 

Unemployment (IDSUI)

 

New Employer Rate: 0.97%

 

Administrative reserve (IDAST)

 

New Employer Rate: 0.0%

 

Tax: 2026 Illinois Withholding Tax Tables (M3-2985)

 

The Illinois withholding tax tables have been updated effective 01-01-2026.

 

Tax: 2026 Kentucky Unemployment Wage Base (M3-2982)

 

The Kentucky unemployment (KYSUI) and the administrative surcharge (KYSUR) wage base limit has been updated to $12,000.00 effective 01-01-2026.

 

Tax: 2026 Louisiana Withholding Tax Tables (M3-2970)

 

The Louisiana withholding tax tables have been updated effective 01-01-2026.

 

Tax: 2026 Maine Unemployment Tax Rates (M3-2972)

 

The Maine unemployment (MESUI) and the unemployment program administrative fund (MEAST) rates has been updated effective 01-01-2026.

 

Unemployment (MESUI)

 

New Employer Rate: 2.23%

 

Administrative fund (MEAST)

 

New Employer Rate: 0.17%

 

Tax: 2026 Montana Unemployment Wage Base (M3-2981)

 

The Montana unemployment (MTSUI) and the administrative surcharge (MTSUR) wage base limit has been updated to $47,300.00 effective 01-01-2026.

 

Tax: 2026 New Mexico Unemployment Wage Base (M3-2977)

 

The New Mexico unemployment (NMSUI) wage base limit has been updated to $34,800.00 effective 01-01-2026.

 

Tax: 2026 New York Unemployment Wage Base (M3-2976)

 

The New York unemployment (NYSUI) and the re-employment service fund (NYCLA) wage base limit has been updated to $17,600.00 effective 01-01-2026.

 

Tax: 2026 Ohio Local City of Gallipolis Municipal Income Tax (M3-2988)

 

The Ohio local City of Gallipolis (OH-GAL3 and OH-GAL6) municipal income tax rate has been updated effective 01-01-2026.

 

Rate: 1.5%

 

Tax: 2026 Oklahoma Unemployment Wage Base (M3-2975)

 

The Oklahoma unemployment (OKSUI) and the technology fund (OKAST) wage base limit has been updated to $25,000.00 effective 01-01-2026.

 

Tax: 2026 Rhode Island Unemployment Wage Base and Rate (M3-2974)

 

The Rhode Island unemployment (RISUI) and the workforce (RIWD) wage base limit has been updated to $30,800.00 effective 01-01-2026.

 

The employee temporary disability insurance (RISDI-E) wage base limit has been updated to $100,000.00 effective 01-01-2026.

 

RISDI-E rate: 1.1%

 

Tax: 2026 Washington Unemployment Wage Base (M3-2973)

 

The Washington unemployment (WASUI), the employment assistance program (WACLA) and the workforce development (WAWD) wage base limit has been updated to $78,200.00 effective 01-01-2026.

 

System: 2026 State Minimum Wage Rate (M3-2966)

 

The following states have updated their minimum wage rates effective 01-01-2026:

 

Arizona: $15.15

 

California: $16.90

 

Colorado: $15.16

 

Connecticut: $16.94

 

Hawaii: $16.00

 

Maine: $15.10

 

Michigan: $13.73

 

Minnesota: $11.41

 

Missouri: $15.00

 

Montana: $10.85

 

Nebraska: $15.00

 

New Jersey: $15.92

 

New York: $16.00

 

Ohio: $11.00

 

Rhode Island: $16.00

 

South Dakota: $11.85

 

Virginia: $12.77

 

Vermont: $14.42

 

Washington: $17.13

 

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