State Tax Filing Resources

Agency: Alabama Department of Revenue

ID: AL state withholding ID application instructions

Effective Jan. 1, 2024, overtime pay for hourly Alabama employees working more than 40 hours a week is exempt from state income tax. The law is currently in effect through June 30, 2025, but may be extended.

What is Paychex Doing?

Our payroll system defaults to exempting all Alabama overtime wages during the current effective date range of Jan. 1, 2024, to June 30, 2025.

What Do I Need to Know?

• This law only applies to hourly workers who work more than 40 hours in a week. Full-time employees who are salaried and nonexempt do not qualify for the overtime exemption, so their overtime pay should be taxed.
• Any paid time off, including sick and vacation time, should not be included when calculating an employee’s total hours worked.
• Hourly employees who perform some work outside of Alabama (and those earnings are taxed in a different state) are not eligible for exempt overtime if fewer than 40 hours was worked in Alabama. In this scenario, the overtime should be taxed.
• If you require overtime to be taxed, you’ll need to contact your Service Representative to have them set up a separate overtime earning code for those employees. If you have both exempt and nonexempt employees, make sure you know what each code is named so you use the correct overtime code for each group.
• Non-Taxpay - When you make your monthly payment to the Alabama Department of Revenue for the first and second months of a quarter, you must include the number of employees who received exempt overtime pay, as well as the amount of exempt overtime paid.
  
  When you file your quarterly return with the Alabama Department of Revenue, include the month three number of employees in the third month of the quarter who received exempt overtime pay, as well as the amount of exempt overtime paid.

Alaska does not have state withholding tax.

Agency: Arizona Department of Revenue

ID: State withholding and SUI application instructions 

Agency: Arkansas Department of Finance and Administration 

ID: AR state withholding application instructions

Employers must provide an EITC notification to employees by either handing it directly to the employee, mailing it to the employee’s last known address, or providing it via email if an employee has opted in to receiving electronic statements or material if they are subject to, and required to provide Unemployment Insurance. For more information, review Year-End Notification Requirements and California Earned Income Tax Credit | FTB.ca.gov.

Sample notice

Agency: Colorado (CO) Family and Medical Leave Insurance Program (FAMLI)

ID: CO Family and Medical Leave insurance (FAMLI) ID application instructions

What is CO Family and Medical Leave Insurance (FAMLI)?

A program to ensure all CO workers have access to paid leave to take care of themselves or their families. The premiums are set through 2025 to 0.90% of the employee’s wage, with 0.45% paid by the employer and 0.45% paid by the employee.

Employers with nine or fewer employees do not have to contribute to the program but do need to remit their employees' share (0.45%) of premium payments on their behalf each quarter. 

Employers need to withhold employees' premiums from their paychecks or pay some or all the premium on their employees’ behalf. Employers cannot collect missed premiums in later pay periods.

For more information for employers, FAQs are available:

• Paychex FAQs
• CO FAMLI FAQs

Agency: Colorado Department of Revenue

ID: CO state withholding ID application instructions

• Taxpay - Complete and return the attached Paychex Colorado Local Occupational Privilege Tax Client Information Form so we can calculate OPT for the following cities:
  • Denver
  • Glendale
  • Greenwood Village
  • Sheridan

If you have any changes to the OPT tax, complete a new form and submit it to your Service Representative.

Employers are required to:

• Provide written notice of the availability of the federal and state earned income tax credits and the federal and state child tax credits at least once annually. An employer may send the written notice to employees electronically, including via email or text message. The written notice must be in English and any other language the employer uses to communicate with employees and include any additional content that the Department of Revenue prescribes.

Review the Colorado DR0995 - Notice of Federal and State Refundable Tax Credits for more information.

Agency: Connecticut Paid Leave

ID: CT PFML ID application instructions

• All employees who work in Connecticut are subject to a 0.5% employee payroll withholding tax for CT PFML.
• You don’t make contributions toward the program.
• You’re required to withhold the tax and remit it to the CT Paid Leave Authority.

Non-Taxpay – You’ll need to register for CT PFML. To remit payments, you can use the Online Portal Contribution Process.

Agency: Connecticut Department of Revenue Services

ID: CT state withholding ID application instructions

Delaware implemented a Paid Leave (PL) program starting Jan. 1, 2025. The program offers paid leave to employees who have been employed for at least one year and who have worked at least 1,250 hours with a single employer. If their leave is approved, employees will get up to 80% of their wages (up to $900 per week). Employees are limited to a maximum of 12 weeks of combined leave per year.

New Information - Registration for ID and TPA

To be on the Paychex Taxpay^® account for Delaware Paid Leave, you need to:

1. Make sure your business is registered with Delaware LaborFirst. If you need to register, follow these step-by-step instructions.
2. Select Paychex, Inc. as your Third-Party Administrator (TPA) when registering with Delaware LaborFirst so that we can file returns and remit quarterly payments on your behalf. To properly set up Paychex as your TPA for Delaware Paid Leave:

• Select “Paychex, Inc.” as your TPA
• Select “Administrator” as the TPA Role
• Follow these instructions for managing TPA access

After completing these steps, please provide your Delaware Paid Leave ID number and confirmation of the TPA request to your Paychex representative so that we can make payments and file returns for this agency. If we don’t receive this information by the end of the current quarter, you will be responsible for remitting your Delaware PL payments and returns. 

Please note that Paychex will use our TPA access for filing your returns and remitting your quarterly payments, only. We will not be responding to employee claims or conducting any other activity outside of quarterly filings and payments.

Delaware PL has three types of coverage: parental, medical, and family caregiving/qualified exigency leave. Employers with nine or fewer employees are exempt; employers with 10 to 24 employees are subject to parental leave only; and employers with 25 or more employees must offer full coverage.

Review the Delaware Paid Leave Is Coming website for more information about what Delaware PL may cover and the requirements based on the number of Delaware-based employees you may have.

Additional Information for Employers:

• Employers may elect coverage that they’re not required to offer. For more information, review the Small Business Voluntary Enrollment in the Delaware Paid Leave plan FAQs.
• Delaware Paid Leave Program Overview FAQs
• Employers wishing to offer a private plan must apply to do so by Dec. 1, 2024. For more information, review the Use of Private Insurance to Provide Paid Family and Medical Leave Benefits FAQs. 
  
  Note: Employers can still offer a private plan later than Dec. 1, 2024, but will owe PFML contributions from Jan. 1, 2025, until they receive confirmation that they have enrolled in a private plan.

Your Responsibilities as the Employer:

• You are required to pay up to 0.8% payroll tax on taxable wages earned in Delaware. You may choose to withhold a maximum of 50 percent (up to 0.4%) of the contribution from employee wages.
• Remit payment at the same frequency you remit Delaware SUI payments beginning Q1 2025.
• Report DE PL quarterly only online through Delaware Labor First.
• Report DE PL on employee W-2s.

What Paychex Will Do:

• Calculate the DE PL tax and withhold it from employees according to the requirements.
• Report DE PL on employee W-2s.
• Taxpay and PEO clients 
  • Remit tax payments to Delaware LaborFirst, due the end of the month following the end of the quarter.
  • Report DE PL quarterly electronically online at Delaware LaborFirst.
• Non-Taxpay clients 
  • Notify you of tax payments due at the end of the month following the end of the quarter and provide a facsimile so you can electronically report information online at Delaware LaborFirst.

Employees must be furnished with Forms W-2 by January 31 of each year or within 30 days of the last payment of wages. At the same time, employers must furnish employees with all information required by the IRS regarding the employee’s eligibility for the federal earned income tax credit and any other information the director requires.

For more information on federal eligibility requirements go to the Internal Revenue Service (IRS) Earned Income Tax Credit (EITC).

Agency: DC Paid Family Leave

ID: DC PFML, State Withholding, and SUI ID application instructions

The Paid Family Leave Act provides up to twelve weeks of parental leave to bond with a new child, twelve weeks of family leave to care for an ill family member with a serious health condition, and twelve weeks of medical leave to care for one’s own serious health condition.

These PFL benefits are funded by a quarterly employer tax of .26% of your covered employees’ total gross wages in the quarter.

Note: Unlike SUI, there is no wage base limit for DC PFL. 

Any employer performing services in Washington, D.C. and paying SUI will be required to contribute to Paid Family Leave (PFL) for their employees, including:

• Non-profits that pay SUI taxes
• Household employers that pay SUI taxes
• All employers who pay SUI (there is no employee threshold for eligibility)

This is an employer contribution only; employees don’t make contributions.

Paychex PEO - We remit the required payments for PFL on your behalf under the PEO account as required by DOES. You must submit and manage your employees' PFL claims.

Agency: DC Office of Tax Revenue

ID: DC PFML, State Withholding, and SUI ID application instructions

Non-Taxpay - The District of Columbia (DC) Office of Tax and Revenue (OTR) no longer accepts paper copies of the Employer/Payor Withholding Tax – Quarterly Return (FR-900Q). You are required to file online on MyTaxDC. If you don’t currently have access to this site, go to Sign-Up for MyTax.DC. gov.

Paychex will include a facsimile of the return in your quarterly tax packages. You can use this information to complete your online filing.

Florida does not have state withholding tax.

Agency: Georgia Department of Revenue

ID: GA state withholding application instructions

Agency: Hawaii Department of Taxation

ID: HI state withholding ID application instructions

The Department of Taxation requires employers whose withholding tax liability exceeds $40,000.00 annually to file their tax returns electronically.

• Non-Taxpay - If you meet the requirements, you must file return electronically at Hawaii Tax Online.

Agency: Idaho State Tax Commission

ID:  Idaho state withholding ID application instructions

Agency: Illinois Department of Revenue (DOR)

ID: MyTax Illinois > Register

The Illinois Department of Revenue requires all employers, including bulk service providers, to electronically file Form IL-941, Illinois Withholding Income Tax Return. Form IL-941 indicates the information must be filed electronically.

The following forms are required to be filed with the IL-941:

• Schedule WC, to report withholding income tax credits
• Schedule P, Illinois Withholding Schedule

Overpayments

The Illinois (DOR) doesn't allow overpayments to be applied on Form IL-941. Amounts reported on Form IL-941 must always be the exact amounts withheld from payees. If the amount reported was more or less than the amount you actually withheld, then you must file an amended return (IL-941X). If you do not make the correction before the end of the calendar year, you must report the amount withheld on the W-2 or 1099 forms for the payees to claim on their income tax returns.

Employee Withholding

In the December 2023 Informational Bulletin, the DOR announced that the 2024 personal exemption allowance has been increased from $2,425.00 to $2,775.00. 

Many Illinois employers are required to offer pre-tax commuter benefits to their employees if they meet all of the following requirements:

1. You are located in any of the 38 counties identified in House Bill 2068.
2. Your employees work an average of at least 35 hours per week on a full-time basis. These are covered employees.
3. You have 50 or more covered employees in the locations listed. This is an aggregate number across all 38 counties. For example, if you have 12 employees working in 5 affected counties, these are covered employees.
4. Your locations are within 1 mile of fixed route transit service.

Since Paychex can’t verify, on your behalf, whether you meet these requirements, your business is responsible for determining if this legislation affects you.

If your business is not affected by this legislation, you don’t need to take any further action.

If your business is affected by this legislation, you:

• Must allow employees to purchase a transit pass with pre-tax dollars up to the federal limit of $315 per month.
• May comply with this requirement by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority.

If you want to set up a pre-tax commuter benefit on employees’ paychecks, please notify Paychex. We can set this up on payroll and report it correctly on returns and W-2s.

Employers are required to notify employees that they may be eligible for the federal EITC each year unless the employee receives gross wages that exceed the maximum amount that may qualify for the federal EITC.

The employer must provide the following notice by giving or mailing it to the employee:

• Any notice available from the Internal Revenue Service for this purpose, including IRS Form 797; or
• Any notice created by the employer, as long as it contains substantially the same language as the IRS notice.

The EITC notice must be furnished within one week before, after, or at the same time that the employer provides a W-2 to any employee. For more information on qualifying for the federal EITC/EIC, go to the IRS website.

To qualify for the Illinois Earned Income Credit, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. See the Illinois Earned Income Tax Credit (EITC) web page for more information.

The Indiana DWD requires that additional information be included with the wage reporting for SUI. For the Indiana wage report, clients need to report the following for each employee:

• Use the 2018 Standard Occupational Classification System (SOC) system to assign six-digit codes to each employee. Report the SOC code without dashes in Paychex Flex. Use the following help articles to assist you in entering the codes:
  • For individual employees: update SOC codes manually
  • For groups of employees: import a list of SOC codes
• The primary work zip code.
• Full-time/part-time/seasonal work status.

For more information refer to the ESS Enhancement FAQ on the agency website.

Agency: Indiana Department of Revenue (DOR)

ID: IN state withholding application instructions

The Indiana Department of Revenue (DOR) requires all employers to electronically file and pay withholding tax and county withholding tax returns through the Indiana Tax Information Management Engine (INTIME) system.

• Non-Taxpay - File your returns electronically using the INTIME system.

Agency: Iowa Department of Revenue

ID: Iowa state withholding ID application instructions

Agency: Kansas Department of Revenue

ID: Kansas State Withholding application instructions 

Agency: Kentucky Department of Revenue

ID: Kentucky State Withholding and SUI application instructions for both agencies

The LWC requests that Standard Occupational Classification (SOC) codes be reported on SUI wage reports. The U.S. Department of Labor, Bureau of Labor Statistics, created these codes to classify occupations.

• Use the 6-digit code that best describes your employees’ work activities.
• If you have already provided SOC codes for employees who have changed job functions, please report this change to your service representative.
• The LWC sends emails to obtain missing SOC codes not reported on your quarterly SUI returns.

Entering Employee SOC Codes

To report employee SOC codes:

1. Assign your employees SOC codes from the 2010 Standard Occupational Classification System.
2. Log in to Paychex Flex^®.
3. Enter the SOC Codes as 6-digit numbers with no dashes. Refer to the following help articles:
   • For individual employees: update SOC codes manually
   • For groups of employees: import a list of SOC codes

Agency: Louisiana Department of Revenue (DOR)

ID: Louisiana Department of Revenue > Business Registration

Starting in 2024, the Employer’s Return of Louisiana Withholding Tax Form (L-1) will no longer be provided on paper to monthly and quarterly tax filers. You will need to file these returns electronically, using the online filing system Louisiana Taxpayer Access Point. If you don’t already have access, select the Sign Up link on the site.

Note: If you’re a semi-monthly filer, you’re already required to file electronically.

• Non-Taxpay - In your quarterly tax package, you’ll receive a facsimile of the report that you can use to file your return electronically regardless of your filing frequency or number of employees. This will also be the case for the annual reconciliation form, Employer’s Annual Reconciliation of Louisiana Withholding Tax Form (L-3) filed in fourth quarter. In your fourth quarter tax package, you’ll receive the L-1 and L-3 facsimiles that you can use to file electronically. The information contained on the L-3 form must be submitted with corresponding W-2 information.

Employers are required to notify new employees of the Federal EITC general eligibility requirements. Louisiana law (R.S. 23:15, 23:1018.2) also requires every employer to post a printed copy of the requirement in or about the premises of the workplace. Visit the Louisiana Department of Labor for a notice you can give employees.

Agency: Maine Revenue Services

ID: Maine Revenue Services > Electronic Services > Maine Tax Portal > Register a Business

Maine Tax Portal

Maine Revenue Services (DOR) transitioned to the Maine Tax Portal (MTP).

All Maine employers need to create a username and password for the Maine Tax Portal. You should have received an invitation from the agency in the mail about how to sign up for the portal. When you setup your account on the portal, you’ll have access to your existing information; your account ID number remains the same.

New clients

If you haven’t previously registered with Maine, you will register using the new portal. You’ll be issued an 8-digit income tax ID number. Enter the number in Paychex Flex^® using this help article in Paychex Flex, or report it to your Service Representative.

Power of Attorney (POA)

The existing POA process is not changing. You are still required to complete the Maine POA and submit it to the agency.

For more information visit the agency’s Maine Tax Portal FAQs.

Filing

• Non-Taxpay - If your business is SUI exempt, not subject, withholding only, or you file Maine withholding, use Form 941-ME. Maine SUI/Wage clients should file Form ME UC-1. Paychex will provide agency-ready returns for you to sign and file, as well as for your records. With these documents, you have two options for filing Forms 941-ME and Form ME UC-1.

Option 1 - File the Return on Paper

• If the return shows a balance due, enclose a check made payable to Maine Revenue Services. Write your state ID number on the check.
• Sign the return and mail it to the agency with any payment on or before the due date. Note: Do not staple the pages.

Option 2 - File Electronically

Using the information provided on your agency-ready return sent by Paychex, you can enter the data required on the Maine Tax Portal.

Paychex is providing support for Maine’s Paid Family and Medical Leave Program (PFML Program) by collecting the employer and employee premiums and remitting associated returns and payments. FAQs are available on the state’s website.

What is the Paid Family and Medical Leave Program (PFML Program)?

This program ensures Maine workers have access to paid leave to be able to take care of themselves or their families. Starting in 2026, eligible workers will have up to 12 weeks of paid time off for family, medical, or safe leave, or handle the transition of a family member’s pending military deployment.

What is the Contribution Rate?

Employers with 15 or more employees contribute 1% of wages but may deduct up to half of the contribution from the employees’ wages. Employers with fewer than 15 employees will contribute 0.5% of wages and may deduct the entire amount from the employees’ wages.

Can Employers Cover the Cost of Employees’ Maine PFML Program Payments?

Yes, employers can choose to cover any amount of their employees’ premiums. 

What if I Have My Own Private Paid Leave Plan?

To be approved as a substantially equivalent private plan, the plan must be either a self-funded plan (which requires a surety bond paid to the state), or a fully funded plan purchased from an insurance company. However, Maine has not yet provided details on the approval process. Private plan information is available in the Frequently Asked Questions section posted on the Maine Paid Family Leave website.

Registering for PFML

Employers must register for PFML through the state portal.

Maine Law (Title 26 M.R.S.A. & 42-B) requires every employer to place this poster in the workplace where workers can easily see it. The poster is available online at: https://www.maine.gov/labor/posters/.

Agency: Comptroller of Maryland

ID: MD State Withholding application instructions

On or before December 31, 2024, employers must provide electronic or written notice to employees who may be eligible for the federal and Maryland EITC. For more information, including an employee notice, go to the Maryland Tax Alert on EITC.

All MA employers subject to SUI with more than five employees are responsible for the EMAC contribution as follows:

• Newly Liable Employers for first 36 Months - Exempt
• Fourth Year - 0.12%
• Fifth Year - 0.24%
• Sixth and Subsequent Years - 0.34%

All payments are calculated using the 2025 SUI taxable wage base of $15,000.00.

Agency: Department of Family and Medical Leave

ID: MA PFML ID application instructions

Massachusetts is offering paid family and medical leave (PFML) benefits to eligible workers. The MA PFML program is funded by premiums paid by workers and certain employers through payroll deductions. Depending on the makeup of your workforce, you may be responsible for remitting contributions for both MA W-2 employees (full-time, part-time, seasonal) and MA 1099-MISC contractors.

Registering for PFML

Your business needs to register for PFML using your existing MassTaxConnect account. The steps for registration can be found on the Mass.gov website under the Employer’s Guide to Paid Family and Medical Leave section.

• Taxpay and Paychex PEO - To ensure that Paychex can provide you with service for your MA DOR/PFML account in the future, we  suggest that you register Paychex as your PTP (Professional Tax Preparer) using the TPA instructions.

Counting Covered Individuals

It is your responsibility to inform Paychex whether your 1099-MISC contractors need to have the MA PFML premium withheld. Paychex won't make this determination for you. Your choice for withholding on your contractors, once made, will apply to all your 1099-MISC contractors in Massachusetts.

PFML Premium Rates

These premiums are split into two parts, Family Leave and Medical Leave. The percentages of Family Leave and Medical Leave are dependent on your employee count.

• Employers with fewer than 25 employees have a total rate of .46%.
• Employers with 25 or more employees have a total rate of .88%.

The Family Leave portion is paid 100% by the employee. The Medical Leave is split between the employee and the employer with 40% paid by the employee and 60% paid by the employer (where applicable). The employer can elect to cover some or all the employee portion of both the family and medical premiums.

Existing Family and Medical Leave Benefits

If you already offer family and medical leave benefits to your employees, you can apply for annual exemptions from making contributions for both medical leave and family leave if you offer a private plan option that is at least as generous as what is required under the PFML law. If your business receives this exemption your employees will not be covered by the state PFML plan.

Please let your Service Representative know if you are exempt from the state MA PFML program.

Notifying W-2 Employees/1099-MISC Contractors

You are required to notify your workers about the state’s PFML program, including its benefits and protections that apply to them.

For additional information about PFML, use the following resources provided by the agency:

• Employer’s Guide to PFML
• Employer toolkit

Agency: Massachusetts Department of Revenue

ID: MA state withholding ID application instructions

We initiate the process to assign Paychex as a PTP for MA SUI, state withholding, and PFML. Once we complete our process, MassTaxConnect contacts you by email if you have signed up for notifications with the agency.

When you receive the notification, you need to approve Paychex as a PTP by going to MassTaxConnect.

• Select Manage My Profile
• Select the More tab, then the View Access Requests From Third Parties in the Third-party Access panel.
• The Paychex request will show as pending approval
• Select Approve/Deny
• Check the box under Give Rights and choose All Access under Granted Rights, then Next 
• The summary screen then appears, choose Submit, then OK

Agency: Michigan (MI) Department of Treasury (DOT)

ID: MI state withholding application instructions 

If your state withholding filing frequency changes for a new tax year you’ll receive a notice from the Michigan Department of Treasury (DOT) with the new information late in the current year. The agency doesn’t share filing frequency information with Paychex, so you need to update Paychex Flex. 

Note: Do not enter your 2025 MI state filing frequency in Paychex Flex until Jan. 1, of the new year. If you change your filing frequency in Paychex Flex before then, your filing frequency for the remainder of the current year will also be changed.

As required by the Michigan Income Tax Act, employee state tax withholding is calculated annually based on the conditions of the general revenue fund. In 2025, the rate remains 4.25%.

Agency: Minnesota (MN) Department of Revenue

ID: MN state withholding ID application

Agency: Mississippi Department of Revenue

ID: Mississippi Department of Revenue > Register a Business for Taxes > Register for Taxpayer Access Point (TAP)

Agency: Missouri Department of Revenue

ID: Missouri Department of Revenue > Online New Business Registration

Agency: Montana Department of Revenue (DOR)

ID: Montana DOR > Transaction Portal > New user? Setup online access

Montana Employees Withholding Allowance and Exemption Certificate (MW-4) has been redesigned.

Agency: Nebraska Department of Revenue (DOR)

ID: NE state withholding application instructions

The Nebraska DOR will mail the Nebraska Withholding Return (Form 941N) to all Nebraska taxpayers. Check Line 12 to determine if a previous balance or credit exists on your account. This information must be relayed to your Service Representative immediately so an accurate quarterly return can be prepared.

Taxpayers who made payments of $5,000.00 or more for sales and use tax, withholding, or corporate tax programs in any prior calendar year will be required to make all payments to the tax program electronically.

• Non-Taxpay - Any employer who furnishes more than 50 Federal Forms W-2, Forms 1099-MISC, or statements reporting withholding for a year must electronically file. To file online, go to Nebfile for Business.

Agency: Modified Business Tax website

If you have employer contributions to health insurance or health benefits plans, you must report this amount to your Service Representative before each quarter-end deadline. If employer contributions are not reported on time, they will be entered in the next quarter.

If your business is subject to the Net Proceeds of Mines Tax, you must remit the Modified Business Tax Return M. What this means to you:

• You must pay MBT a specified percentage of all wages.
• Paychex does not support the Modified Business Tax Return M. You need to remit this form for mining.

If you are not sure if your business is subject to the Net Proceeds of Mines Tax, contact your tax advisor or the agency directly.

Agency: Commerce Tax, Commerce Tax Frequently Asked Questions

Nevada implemented a Commerce Tax, which is an annual tax imposed on the Nevada gross revenue of each entity doing business in the state. The Commerce Tax applies to businesses with gross revenue that exceeds a specified dollar amount.

The Commerce Tax is not a payroll tax, and Paychex will not prepare or file these returns. However, eligible employers can now take a credit towards their Modified Business Tax (MBT). Paychex does report this tax for you and will support this tax credit.

What is the tax credit towards the MBT?

Fifty percent of the Commerce Tax paid by your business for the previous Nevada fiscal tax year may be used as a tax credit towards MBT. The Nevada fiscal tax year is July 1 through June 30, including the last two quarters of one year and the first two quarters of the next.

Click here for an example.

What if my credit is more than my MBT tax?

The credit carries over from quarter to quarter but must be used in the first four quarters after the fiscal tax year. 

What will Paychex do once I report the credit amount?

Paychex will apply the credit to your MBT payment and carry the amount over as necessary. It is important that you report the credit to us as soon as possible so we can apply it to the applicable quarters.

Can I get a refund instead of applying the credit to my MBT tax payment?

No, the credit must be applied to current or future tax due.

• Taxpay
  • MBT Credit - You must report the tax credit to Paychex, as the agency doesn’t send this information directly to Paychex.
• Non-Taxpay
  • Employers are required to file the Employers Quarterly Report (RPT3795) and Nevada Wage Report (NEW0098) electronically.
  • MBT Credit - While not required, it is best if you report this information to Paychex so we can show it on your return and track it for you.

Nevada does not have a state withholding tax.

The New Hampshire Paid Family and Medical Leave (NH PFML) differs from other state-run programs because it is a voluntary insurance program.

If you are not currently interested in learning more about NH PFML, please disregard the remainder of this information. Read on if you want to learn more about this benefit for your employees.

Is participation in the NH PFML mandatory for employers?

No. The NH PFML is a voluntary program; participation is available to all employers and workers but is not required.

What is the NH PFML?

Eligible and participating workers will receive up to 60% of their annual weekly wage when taking qualified leave for up to six weeks per year. Leaves can be taken continuously or in a minimum of 4-hour increments.

Qualifying reasons for leave:

• Your own serious health condition(s) when disability coverage doesn’t apply, including childbirth
• Child bonding due to birth, adoption, or fostering
• To care for a covered family member with a serious health condition(s)
• Qualifying needs arising from military deployment or service
• Caring for a qualifying military service member

Resources provided by the agency:

• Learn more about NH PFML
• What NH PFML means for employers
• MetLife: NH PFML support
• Frequently Asked Questions
• NH PFML Webinars

How can Paychex help?

• If you are participating in the NH PFML voluntary program, you can set up the insurance premiums as employee payroll deductions in Paychex Flex^®, or we can set those up for your eligible employees.
• If you are not participating in the NH PFML program but are a large employer required to set up employee payroll deductions, you can set those up in Paychex Flex, or we can set those up for you.  

Paychex does not remit payments; we only set up the deduction. You will be responsible for remitting payments to the appropriate insurance agency.

New Hampshire does not have state withholding tax.

Agency: New Jersey Division of Taxation

ID: New Jersey Division of Taxation > Doing Business in New Jersey > Business Registration Application (NJ-REG)

A written notification must use a statement developed by the New Jersey state treasurer between January 1 and February 15. Employers are required to provide this information only to those employees they reasonably believe may be eligible for the federal credit based on wages earned during the year as reported on Forms W-2. Employers are required to give these employees the notification.

• 2024 notice to employers: https://www.nj.gov/treasury/taxation/pdf/eitcnotice.pdf
• 2024 notice to employees: https://www.state.nj.us/treasury/taxation/pdf/eitcstatement.pdf

Agency: New Mexico (NM) Department of Workforce Solution (DWS)

ID: NM SUI ID application instructions

The New Mexico DWS requires you to file the Employer’s Quarterly Wage/Tax Report, Form ES903B, electronically through their website.

• Non-Taxpay - Employers are required to file Form ES903-B electronically through the New Mexico DWS website.

The New Mexico DWS requires that employers submit all SUI tax payments electronically and by the last day of the month following the end of the quarter. All Paychex payments are sent electronically by ACH Credit each quarter. When the bank releases the tax funds to the agency on the due date, it can take a day or two for the tax funds to be posted to the individual employer accounts.

New Mexico DWS has an automatic notice generation process that could generate a "Notice of Amount Due" to employers based on whether or not the payment has been posted to the individual accounts. To avoid having these automatic notices generated for our clients, we have modified the due date on our payment file so that it processes two banking days before the actual tax payment due date.

• Taxpay - These amounts have already been collected from your account. You will see the payment due date change on your returns and Outstanding Tax Liability Reports.
• Non-Taxpay - First quarter 2025 payment will reflect as being due on April 28, 2025; however, payment is not due until April 30, 2025.

Agency: New Mexico (NM) Taxation & Revenue (state withholding and workers’ compensation)

ID: NM State Withholding and Workers’ Compensation ID application instructions

• Non-Taxpay - New Mexico employers should access the New Mexico Taxation & Revenue Department Online Services to file their returns online.

New Mexico mandates that filers report the workers’ compensation fee due for each employee on the quarterly Form ES903B (wage continuation sheet). This fee is either a $4.30 flat fee per employee or $0.00 and is reported and paid separately using Form WC-1.

Fee Exceptions

Review the following exceptions to the current reporting of the workers’ compensation fee due on Form ES903B and report any exceptions to your Service Representative.

Three or More Employees

If you have three or more employees who were employed on the last working day of the quarter and reported wages in the quarter (for all agencies, not just New Mexico), a $4.30 flat fee will be reported for each employee and totaled for all employees for that client.

Other Exceptions

If the only employees are domestic servants, real estate salespeople, or farm and ranch laborers, $0.00 should still be reported unless the business elects coverage for these employees.

In some circumstances, an executive employee of a corporation or a limited liability company (LLC) may choose to be exempt from coverage under the company’s policy. If an executive is exempt from the policy, the $4.30 fee should not be reported. However, even if $0.00 is reported, the employee still counts toward the threshold of three. If this threshold is met, the $4.30 fee is required to be reported for each of the other two employees.

Fewer Than Three Employees

If you have fewer than three employees who were employed on the last working day of the quarter and reported wages in the quarter (for all agencies, not just New Mexico), $0.00 will be reported for each employee and totaled for all employees per Paychex account.

All construction industry employees are required to report the $4.30 fee, regardless of the number of employees in the business. Even if a business has fewer than three employees and is not required to have coverage, it may still elect to have workers’ compensation coverage.

If a business has chosen to have coverage, the business must pay the $4.30 per employee fee.

• Taxpay - Paychex will file returns and remit deposits for all SUI clients with a valid New York SUI ID number. Accounts with “applied for” as the ID are not accepted. SUI Reimbursable and Not Liable employers will continue to be filed for withholding only.
• Non-Taxpay - Paychex can’t provide non-Taxpay clients with signature-ready Forms NYS-45. You can use the data on the reference copy provided in the quarterly package to enter your quarterly reporting information. 

Contractors/Subcontractors

Contractors and subcontractors working on a public works contract must report the prevailing wage rate and supplemental rate for the job classification(s) that the worker performs. This information must be reported on the worker’s pay stub. The prevailing wage rate and supplemental (benefit) rate are separate amounts and must be listed on the pay stub separately.
In addition, the contractor/subcontractor must notify all workers in writing, on their first paycheck at the beginning of the contract and with the first paycheck after July 1 of every successive year, the following:

• The number and address of the public works department.
• If you are new to Paychex this quarter, verify the number of weeks worked listed for each employee on the timesheet.

The New York State Department of Labor assesses the contractor or subcontractor a fine of up to $50.00 for a first violation, $250.00 for a second violation, and $500.00 for each subsequent violation.

The New York State Department of Taxation and Finance requires all employers to pay and file all returns electronically. In addition, filings without valid ID numbers and employee social security numbers aren’t accepted.

PrompTax Program

Agency: PrompTax program website

Withholding tax filers whose aggregate tax withheld for the previous tax year is $100,000 or more must enroll in the PrompTax program. Form TR-370.1, Notification of Required Participation, will be mailed to you if you are required to participate in the PrompTax program. Within 20 days of the notification's postmark, you must enroll online on the website.

Once enrollment is complete, you will receive enrollment confirmation, including a six-digit access code, details of your payment option and start date, and an eight-character password (mailed separately).

Report your six-digit access code to your Service Representative.

Employer Compensation Expense Program (ECEP)

The New York ECEP requires all employers to pay and file all returns electronically.

• Taxpay - Paychex remits payments and returns for all Taxpay clients who have elected to be in the ECEP.
• Non-Taxpay - Paychex can’t provide non-Taxpay clients with a signature-ready Form EC-100. You can use the data on the reference copy provided in the quarterly package to enter your quarterly reporting information online. Refer to The Department of Taxation and Finance Online Services for more information on filing returns/remitting payments electronically.

New York Metropolitan Commuter Transportation Mobility Tax (MCTMT)*

If your business is subject to the Metropolitan Commuter Transportation Mobility Tax (MCTMT). The New York State Department of Taxation and Finance (NYSDTF) announced effective July 1, 2023, the counties in the Metropolitan Commuter Transportation District (MCTD) have been split into two zones with separate rate calculations:

• Zone 1 – New York (Manhattan) the Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)
• Zone 2 – Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester

If your total combined wages in Zones 1 and 2 are less than $312,500, you are not subject to MCTMT for the quarter.

If you are subject to the MCTMT tax for the quarter, it is calculated by Zone.

Zone 1:

• The rate for wages up to $375,000 in a quarter is 0.11% (.0011).
• The rate for wages over $375,000, but not more than $437,500 in a quarter is 0.23% (.0023).
• The rate for wages of more than $437,500 in a quarter is 0.60% (.0060).

Zone 2:

• The rate for wages up to $375,000 in a quarter is 0.11% (.0011).
• The rate for wages over $375,000, but not more than $437,500 in a quarter is 0.23% (.0023).
• The rate for wages of more than $437,500 in a quarter is 0.34% (.0034).

Important: The only calculation difference for Zone 1 and Zone 2 will be on wages that are more than $437,500. The return for reporting this information to the agency has also changed.

To accommodate this requirement, a Work County field has been added to Paychex Flex^® under Taxes, NY-MTA, so your tax can be properly calculated and reported. This is a drop-down menu where you can select the work county for affected employees.

What you need to do:

1. Log in to Paychex Flex
2. Go to Live Reports > Pay Item Details to create a list of current employees with NY MCTMT.
3. Update employees' Work County manually or import a list.  

Any employees who don’t have their county updated in Paychex Flex will be reported in “Zone 1,” potentially increasing your MCTMT tax payment.

For instructions about how to customize the report and update employees correctly, use the Update your employees' work county help article.

Agency: North Carolina Department of Revenue

ID: Register a Business

The North Carolina Department of Revenue (DOR) requires all employers to file all annual returns electronically (1099, W-2, and NC-3).

North Carolina requires every employer closing its business to file Form NC-3 (Annual Withholding Reconciliation) within 30 days of the last wage payment to employees. This form must be filed electronically at the NCDOR website or may result in a penalty.

Employers are now required to keep payroll records for 10 years, up from three years, after returns are filed or payments are made for a given year, whichever is later.

Agency: North Dakota Office of State Tax Commission

ID: North Dakota Office of State Tax Commission > I Am…Business > Income Tax Withholding

Agency: Ohio Department of Taxation

ID: Ohio state withholding instructions

The Ohio Department of Taxation requires all employers to electronically file and pay withholding tax and school district withholding tax returns through the OH Tax eServices. At this time, the Ohio Department of Taxation is enforcing this mandate and will not accept any paper filing. Employers with an OH ID account can access their filing and payment history and other account services. To establish an account, visit the Ohio Business Gateway.

Effective January 1, 2024, the Ohio Employer’s Quarterly Reconciliation of Income Tax Withheld (IT 942) for partial weekly filers is no longer required.

Note: The fourth quarter/annual return is no longer required.

• Taxpay - The client reference copy of the Ohio IT 942 will no longer be included in your quarterly tax package.
• Non-Taxpay - The IT 942 return will no longer be included in your quarterly tax package; you won’t need to remit this return.

Employees who work from home will need to be taxed based on their home locations being their place of work.

• You’ll need to register with local tax agencies if you have employees working from home in localities where you aren’t currently registered.
• If you’ve registered for new local tax agencies, please let Paychex know so we can set up the tax locals on your account. You will need to indicate which employees need to be assigned to the new locals.

Please inform Paychex of any new local tax agency registration and which employees need to be assigned to these locals.

The Ohio Regional Income Tax Agency (RITA) has added a work from home (WFH) indicator on the annual reconciliation Form 17 (Reconciliation of Income Tax Withheld and W-2/1099 Transmittal) for informational purposes.

If you have one or more employees that have local taxes set up in RITA municipalities or if any of your employees WFH for any part of a year and live in any of the Ohio RITA local municipalities, RITA requires that the WFH indicator is checked on Form 17.

You’ll receive an alert in Paychex Flex asking you to make sure to include this information in their Employment Summary.

What You Need to Do

Please indicate in Paychex Flex which of your employees have worked from home at any point throughout the current year by, using these instructions. This information is required for us to complete your year-end reporting and accurately create Form 17.

RITA Municipalities provides a list of all affected local taxes.

When you add new employees in Paychex Flex and set up local taxes in the RITA municipality group, you’ll receive an alert in Paychex Flex asking you to include this information in their Employment Summary.

What Paychex Will Do

Once this information is entered into Paychex Flex, Paychex will report this on your Annual Reconciliation Form 17, as required.

Agency: Oklahoma Tax Commission

ID: OK state withholding application instructions

Agency: Paid Leave Oregon

ID: No separate ID registration

Paychex supports the collection and remittance of employer and employee premiums and files the returns associated with the Paid Leave Oregon program.

What is Paid Leave Oregon?

A program supported by both employer and employee contributions to allow eligible Oregon workers to take paid time off for:

• Family Leave – to care for a family member with a serious illness or injury or to bond with a new child after birth, adoption, or foster placement.
• Medical Leave – employees’ own serious health conditions.
• Safe Leave – for survivors of sexual assault, domestic violence, harassment, or stalking.

Employers with 25 or more employees will pay 40% of the contributions, and employees will pay the remaining 60%.

Employers with fewer than 25 employees do not have to contribute to the program; however, these employers must withhold and remit their employees' share (60%).

Note: PEO employers are subject to 40% of the Paid Leave Oregon premiums.

Learn more about this regulation on Paychex WORX.

What agency governs Paid Leave Oregon?

The Oregon Employment Department. For more information about the program, including coverage and eligibility, visit the Paid Leave Oregon website.

Employer Information

What amount are employers required to contribute toward Paid Leave Oregon premiums?

Employers with 25 or more total employees must pay 0.40% of Oregon employee wages. Employers with less than 25 employees are not required to contribute to the program.

Note: The employee count includes all employees, not just employees working in Oregon.

Are there any limits to the amount eligible employers must withhold for Paid Leave Oregon?

Eligible employers may withhold 0.60% of Oregon employee wages up to the current year's social security wage base unless the employer is paying some or all the premium on their employees’ behalf.

What are employer obligations for remitting payments and returns?

All Oregon employers are required to withhold the applicable employer and employee payments, as well as remit them along with reporting the information on the Oregon Combined Quarterly Report (OQ).

Can employers cover the cost of employees’ Paid Leave Oregon payments?

Yes, employers can cover any amount of employee Paid Leave Oregon payments.

What if employers have their own private paid leave plans in place?

Employers may elect to provide their own paid leave plan for their employees; however, these plans must provide equal to or greater benefits to employees than the state’s paid leave plan, and they may not cost more for employees than the state’s plan.

The Oregon Employment Department must approve all employers’ equivalent plans. For more information on private paid leave plans, go to Equivalent Plan on the Paid Oregon Leave website.

For more information for employers, FAQs are available.

Employee Information

What amount are employees required to pay toward Paid Leave Oregon?

Eligible employees are required to pay 0.60% of their gross wages up to the current year's social security wage base unless the employer is paying some or all the premium on their employees’ behalf.

How much paid time off are employees eligible to receive under Paid Leave Oregon?

Most employees are eligible to receive up to 12 weeks of paid leave (up to 14 weeks for pregnancy-related medical leave).

For more information for employees, FAQs are available.

Paychex is registering Taxpay^® clients for Paid Leave Oregon, as well as collecting and remitting payments and refunds. If you are not a Taxpay client, you remain responsible for these actions yourself.

Replacement Workers

Paid Leave Oregon requires employers to report the total number of replacement workers for the quarter. Replacement workers are “temporary employees hired as replacements for employees off from work for Paid Leave benefits during the quarter.”

Note: You only need to report the number of Oregon replacement workers; name(s) and other information are not required.

For more information about replacement workers and other Paid Leave Oregon information, visit Common Questions - Paid Leave Oregon > Employer Contribution Questions > How does Paid Leave Oregon count the number of employees for a business for program eligibility?

The purpose of reporting replacement workers is that these employees are removed from the count to determine whether you are a large or small employer. This number affects whether you are required to contribute the employer portion of Paid Leave Oregon.

The threshold for employers being required to pay the employer portion of Paid Leave Oregon is 25 or more employees. Reporting replacement workers is especially important if your “small client” status will be affected if you don’t report replacement workers.

Agency: Oregon Department of Revenue

ID: Oregon Department of Revenue > Payroll Withholding > Register for a Payroll Account

Statewide Transit Tax

Agency: Oregon Department of Revenue > Statewide Transit Tax

Employers must withhold the Statewide Transit Tax, one-tenth of 1 percent on wages of Oregon residents and non­residents who perform work in Oregon.

Note: This tax isn't related to the OR Lane or TriMet transit payroll taxes paid by some employers.

Taxpay and Non-Taxpay

• Check the pre-printed Form OQ you received from the state to verify that your federal employer identification number (FEIN) is correct at the Department of Revenue.
• If your FEIN is incorrect on the state pre-printed form, submit a Change in Status Report to the state as instructed on Form OQ and forward the correct number to your Service Representative.

Household Employers

Oregon allows and encourages household employers to file quarterly Forms OQ and 132 instead of the annual Forms OA-Domestic and 132-Domestic. This will allow for more accurate reporting of your payroll records and will reduce the risk of manual errors when transferring information from Forms OQ and 132 to the annual domestic forms at the end of the year. Household employers should register with Oregon as quarterly filers each year.

The Bureau of Labor and Industries (BOLI) requires employers to provide written notice to each employee about the state and federal EITCs. The notice must:

• Be in English and in the language typically used to communicate with the employee(s).

• Be sent annually with the employee's federal Form W-2.

• Provide website addresses where employees can find information about the state and federal earned income tax credits:

  • IRS Earned Income Tax Credit (EITC)

  • Oregon Department of Revenue Tax benefits for families 

Suggested wording from the agency for the employee notice:

You may be eligible for the Earned Income Tax Credit (EITC or EIC), a benefit for working people with low to moderate income, particularly those with children. EITC reduces the amount of tax owed and may provide a refund.

Agency: Pennsylvania Department of Revenue

ID: PA state withholding application instructions

Online users must utilize use the Pennsylvania Tax Hub (myPATH) portal to manage their accounts. Please refer to the myPATH Information and Business Taxes pages on the Pennsylvania Department of Revenue (DOR) website for more information.

• Non-Taxpay - The Pennsylvania Department of Revenue does not accept paper returns for certain filers. 
  
  Paychex does not provide agency-ready quarterly returns for you to sign and file. Instead, we provide a facsimile sample copy return for you as part of our service. Please note that the facsimile sample copies are for reference purposes only and are not file-ready. 
  
  Use the facsimile provided by Paychex to report information by enrolling in myPATH to file PA-W3 returns. Enter the information provided on your Paychex facsimile return into myPATH.

Employers with worksites located in Pennsylvania are required to withhold and remit the local Earned Income Tax (EIT) and Local Services Tax (LST) on behalf of their employees working in PA.

Employers are mandated to require a new certificate of residency form for any employee who changes their address or domicile. The certificate of residency form provides information to help identify the political subdivisions (PSD) where an employee lives and works.

Earned Income Tax (EIT) and Local Services Tax (LST)

• Taxpay clients – Paychex files the EIT and LST returns and remits deposit to the designated tax collector for each municipality.
• Non-Taxpay clients - Paychex will send you an EIT and LST paper return that you must remit to the municipality tax collectors. Municipalities collected by Berks Earned Income Tax Bureau and Lancaster County Tax Collection Bureau require electronic filing. You can use the data on the reference copy we provide in the quarterly tax package to enter your reporting information. For additional information about electronic filing refer to:
  • Berks Earned Income Tax Bureau
  • Lancaster Count Tax Collection Bureau

Verify your tax collector) for each taxing authority by municipality name or pollical subdivision (PSD) code. If you do not know the municipality tax collector or PSD code, you can use the following websites:

• Official Municipal Statistics
• Real-time Municipal Statistics

Philadelphia Local Taxes

Agency: Philadelphia Tax Center | Resource: City of Philadelphia Tax Center Guide

ID: Philadelphia Tax Center > Register a new taxpayer

The City of Philadelphia now requires a reconciliation to be filed every quarter instead of annually. In addition, all quarterly returns must be filed electronically in the Philadelphia Tax Center. The agency will no longer accept paper returns. Refer to the City of Philadelphia Tax Center Guide, Payments, assistance & taxes, and Wage Tax due dates, for more information on filing returns electronically.

Important: Access to the new Philadelphia Tax Center requires existing taxpayers to establish an online account. This process may take a week or more to complete for verification purposes. You should complete this process as soon as possible to avoid any delays in filing. Additional information for the online set-up process can be found here: City of Philadelphia Tax Center Guide > What to do if you have an existing account > Wage Tax due dates.

• Non-Taxpay - Paychex can’t provide you with a signature-ready quarterly reconciliation. You can use the reference copy provided in the quarterly package to enter your quarterly reporting information online.

Philadelphia Earned Income Tax Credit (EITC)

Employers are required to provide their employees with a notice about EITC. The notice provides information about eligibility and free tax preparation services. Employers must provide this notice at the same time they give employees their W-2, 1099, or comparable forms. For more information about business requirements, go to the W-2/1099 Notice Requirements for Businesses.

Employers can provide employees with the EITC notice electronically or a printed copy. The notice is also available in Spanish.

Philadelphia Income-based Tax Refund

Tax forgiveness is a credit that allows eligible taxpayers to reduce all or part of their Pennsylvania personal income tax liability. If you're approved for the PA tax reduction, you may also be eligible for a Philadelphia wage tax reduction.

Tax forgiveness:

• Provides a reduction in tax liability, and
• Forgives some taxpayers of their liabilities even if they have not paid their Pennsylvania personal income tax.

Review the Income-based Wage Tax Refund Petition form to apply. 

Pittsburgh Payroll Expense Tax ET-1

Agency: The City of Pittsburgh > Payroll Expense Tax

Taxpay - Paychex remits the ET-1 return and the tax due. It is your responsibility to inform us if you are a sole proprietor, partnership, contractor/User of Help Supply Service, or a 501-C3 Purely Public Charity because you may be required to file additional information with the return.

Non-Taxpay - If you are not on our Taxpay service, Paychex will provide you with an ET-1 return for the Pittsburgh Payroll Expense Tax. You will receive an agency-ready return for you to sign and file, as well as a copy for your records. If the return shows a balance due:

• Make a check payable to Treasurer, City of Pittsburgh.
• Write your Pittsburgh City identification number on the check.
• Provide your signature, title, phone number, and date.
• Send Form ET-1 and payment to the address listed on the bottom of the return for receipt by the due date.

If you are a sole proprietor, partnership, contractor/User of Help Supply Service, or a 501-C3 Purely Public Charity, you may be required to file additional information with the return.

Agency: Puerto Rico Department of Treasury

ID: SURI  (Sistema Unificado De Rentas Internas)

The Puerto Rico Department of Treasury requires all employers to file withholding taxes through the tax filing system, SURI.

Agency: Rhode Island Department of Revenue (DOR)

ID: Rhode Island Business Registration - Employer Tax Section

The Rhode Island DOR requires larger businesses to electronically remit tax returns and payments. The agency states:

“The State of Rhode Island Division of Taxation has an electronic mandate requiring that a larger business registrant fille all of it returns and remit any payments via electronic means.  A larger business registrant is defined as one that operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000; or that operates as a business whose annual gross income for the entity is over $100,000. If you meet the requirements of the mandate but do not file and pay via electronic means, you may be subject to a penalty. The form you are filing can be filed on the RI Division of Taxations portal at https://taxportal.ri.gov/.”

For more information about Rhode Island filing mandates go to Electronic Filing Mandate | RI Division of Taxation.

Non-Taxpay - Paychex provides you with signature-ready returns. You’ll need to determine whether you need to file it electronically or if you can file on paper. If you are required to file your return electronically, you’ll also need to remit your payments electronically. To file your returns electronically, go to the Rhode Island Tax Portal.

The South Carolina (SC) Department of Employment and Workforce (DEW) has mandated that the following information be reported on the quarterly return.

• Standard Occupational Classification (SOC) code – six-digit codes created by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) that are used to classify workers into specific categories that best match their jobs.
• Number of hours – the number of hours each employee works in the quarter.

Important: SOC codes and the number of hours each employee works are required on SUI quarterly returns. 

Paychex can calculate the number of hours for your employees from our payroll records. However, you need to report your employees’ SOC codes so we can include them on the return. Otherwise, the SC DEW will not accept the return.

Use these instructions to update SC SOC codes in Paychex Flex.

Agency: South Carolina Department of Revenue

ID: SC state withholding ID application instructions

The South Carolina Department of Revenue requires that all employees who will receive Forms W-2 have a complete mailing address. Clients with employees missing any part of the address (street address, city, state, or zip code) can’t be included on the W-2 magnetic media filed by Paychex at year-end. If any employees with year-to-date wages are missing an address component, please update it immediately in Paychex Flex® or by notifying your payroll Service Representative.

South Dakota does not have state withholding tax.

Tennessee does not have state withholding tax.

Texas does not have state withholding tax.

Employers are required to notify employees about the federal EITC requirements annually on or before March 1. Written, electronic, or in-person notification of the general eligibility requirements using IRS Notice 797.

For more information about Texas requirements, go to the Texas Workforce Commission Earned Income Tax Credit Notification.

• Agency: Utah State Tax Commission

  ID: Utah State Tax Commission > TAP > Apply for tax accounts(s) - TC 69

  The Utah Tax Commission has a quarterly filing return requirement, Form TC-941E.

  • Non-Taxpay - Paychex will provide you with a reference copy return as part of our service. Please note that this return is for reference purposes only and is not file-ready You can use the information on the return to file online at the Taxpayer Access Point (TAP). The Tax Commission will no longer accept paper copies of the return.
    
    The Utah State Tax Commission requires the Annual Reconciliation TC-941R to be combined with the Quarter Reconciliation TC-941E and must be filed electronically.

Agency: Vermont Department of Taxes

ID: Vermont Department of Taxes > Businesses > Register for a Business Tax Account

The Vermont Department of Taxes requires all employers to file the Vermont Department of Taxes Quarterly Withholding Reconciliation return (Form WHT-436). The agency requires that the number of full-time (FT) and part-time (PT) employees who are working as of the last day of the quarter be reported on the return. Vermont is following the IRS definition of a full-time employee:

"A full-time employee is an employee who is employed on average, per month, at least 30 hours of service per week, or at least 130 hours of service in a calendar month."

If employees don’t have a status, we’ll report them as FT employees, as the agency requires that the total number of employees reported match the sum of the FT and PT employee counts.

The Vermont (VT) Department of Tax requires VT employers with four or more employees to calculate, report, and pay a healthcare premium as part of the quarterly contribution and reporting. In 2025, the quarterly healthcare contribution is calculated by using the number of “uncovered full-time equivalent” (FTE) employees who worked in VT during each reporting quarter multiplied by $296.89. The number of uncovered FTEs can be calculated using the agency-provided worksheet, Form HC-1.

Your Responsibilities as an Employer:

• Calculate your number of FTEs using Form HC-1 and enter your number (even if it is zero) into Paychex Flex before the end of the current quarter, by following these instructions.

What Paychex Will Do:

• Report the number of FTEs and the Total Health Care Contribution (HCC) due on your VT Quarterly Reconciliation return (Form WHT-436), as required.
• Taxpay® - We’ll collect the amount due during the Outstanding Tax Liability process after the end of the quarter and remit it to the agency by the due date.
• Non-Taxpay - Paychex will send you a paper return that you must remit to the agency.

The Vermont (VT) Department of Taxes (DOT) implemented a Child Care Contribution (CCC) Tax to invest in the Vermont Child Care and Early Education system.

Your Responsibilities as an Employer:

• You are required to pay a 0.44% payroll tax on employee wages earned in Vermont. Earnings subject to Vermont income tax will be subject to Vermont CCC tax. You will pay $4.40 on every $1,000.00 in wages reported.
• Remit payment at the same frequency you remit Vermont state withholding.
• Report CCC using lines on the Quarterly Withholding Reconciliation form (WHT-436).
• Report CCC on employee W-2s.
• You may choose to withhold a maximum of 25 percent (0.11%) of the contribution from employee wages. If you withhold the maximum amount allowed from employees, they will pay $1.10 per $1,000 in wages.

What Paychex Will Do:

• Calculate the Vermont CCC tax. We will default to 100% employer contribution.
• Withhold tax from employees up to 25% of the tax based on your direction.
• Report CCC quarterly on the WHT-436.
• Report CCC on employee W-2s.
• Tax payments:
  • Taxpay and PEO clients - remit tax payments to the VT DOT based on the state tax withholding frequency.
  • Non-Taxpay clients - notify you of tax payments and the due date based on your state withholding frequency.

Agency: Virginia Tax

ID: Virginia Tax > Register My Business

The Virginia Department of Revenue requires Form VA-16 (Quarter Reconciliation), Form VA-6 (Annual Reconciliation), and Forms W-2 to be filed electronically. 

Virginia employers must post notices issued by the Virginia Department of Social Services on the federal and Virginia EITC in the same location where other state or federal required notices are posted.

The Virginia Department of Social Services may distribute the notice on the availability of earned income tax electronically. The notice will include information on qualifying income levels, the amount of credit available, the process for applying, and assistance available for applying for the credit. The Virginia EITC is generally equal to 20% of the federal EITC.

For more information, go to the agency website at: http://www.dss.virginia.gov/community/eitc.cgi

Agency: Washington (WA) Department of Revenue

ID: WA SUI ID application instructions

• Non-Taxpay - Paychex can’t provide non-Taxpay clients with signature-ready Forms 5208A and 5208B. You can use the data on the reference copy provided in the quarterly package to enter your quarterly reporting information on EAMS.

The Washington Employee Security Department (ESD) requires that employers report Standard Occupational Classification (SOC) codes for each Washington employee. SOC codes need to be added to all current employees who work in the state of Washington.

The Washington ESD began assessing “incomplete report” penalties if employers fail to report or report invalid SOC codes for employees. Review the reference copy of your most recent Washington wage detail report to see which employees still need SOC codes reported and report these in Paychex Flex as soon as possible.

Use these instructions to enter WA SOC codes in Paychex Flex.

For more information about the requirement, go to Employment Security Department >  SOC code reporting required.

SOC codes must be assigned by the employer. Paychex does not have the information to assign SOC codes to your employees.

Agency: Washington Labor and Industries

WA L&I ID application instructions

Washington L&I does not allow third-party payroll providers, including Paychex, to provide or submit reproduced paper reports. Paychex will no longer provide clients with a signature-ready copy of the L&I quarterly report. You can use the data on the reference copy provided in the quarterly package to enter your quarterly reporting information through the Washington L&I website.

Agency: Washington Paid Family & Medical Leave

ID: WA PFML application instructions

Most employers are responsible for reporting and paying the premiums for the PFML insurance program. The premium is 0.92% of gross wages paid each quarter. Employers may withhold up to 71.52% of the premium from employee wages or they may choose to pay part or all of it. The employer portion will be about 28.48% of the premium. Employers who have fewer than 50 employees do not have to contribute the employer portion of the premium but have the option to contribute if they choose. 

The due date follows the Employment Security Department’s unemployment quarterly tax due dates. The PFML payments and reporting process is through a separate process than the unemployment tax reporting. For further information regarding the PFML insurance program, please go to the agency website at the Washington PFML website.

• Non-Taxpay - We have provided you with a facsimile notice that includes the information required to be reported and the amount that you need to pay. Do not send the facsimile notice to the agency; this is for your reference only as all reporting is required to be submitted electronically.

Registration

Employers need to register for WA PFML accounts through Secure Access Washington (SAW). In the past this was done automatically as part of Washington SUI and Washington L&I account registration; however, that is no longer the case. To register for a Washington PFML account, you need to:

1. Log in to Secure Access Washington (SAW). 
   • If you don’t already have a SAW account, this Instructional Video may be helpful.
   • You will need your SUI ID and Unified Business Identifier (UBI) numbers when registering. If you don’t have a UBI number, you need to complete the Master Business Application. 
   • You may be required to upload supporting documentation such as a Master Business License or Articles of Incorporation.
2. Select PFML from the list of options > Add a New Service.

Additional Washington PFML Requirement* - Date of Birth 

The Washington Paid Family & Medical Leave (PFML) requires employees’ dates of birth (DOB) on the quarterly report. 

What you need to do

Confirm that Washington employees have DOB entered in Paychex Flex to meet agency requirements to include this information on returns.

Washington (WA) Cares is a long- term care (LTC) insurance premium that your employees will be subject to under the Long-Term Services and Supports (LTSS) Trust Act. Paychex supports this by:

• Calculating and withholding the premium from employees.
• Creating the quarterly return to report this information to the WA Employment Security Department (ESD).
• Remitting payments and returns on your behalf for Taxpay^® clients.
• Providing returns and tax notices to non-Taxpay clients.

Go to the Paychex WA Cares FAQs for details about how Paychex is handling this program.

Employee exemptions

Employees can apply for an exemption to for WA Cares if they meet any of the following requirements:

• You live outside of Washington – your primary residence must be outside of the state.
• You have non-immigrant work visas for temporary workers.
• You are the spouse or registered domestic partner of an active-duty service member of the United States Armed Forces.
• You are a veteran with a 70% service-connected disability rating or higher.

To assist your employees with applying for an exemption, you can provide them with these instructions.

Washington does not have state withholding.

Agency: West Virginia State Tax Department

ID: WV One Stop Business Portal

Taxpayers that have made total payments of more than $25,000.00 during the most recent fiscal year (July 1 to June 30) must file returns and make payments electronically, unless specifically excluded under West Virginia law.

• Non-Taxpay - Returns can be filed and paid electronically (ACH debit) using the agency website. Payments may also be made electronically using ACH credit, pay-by-phone, or credit card.

Weekly Fees

Employees who work in the following areas have weekly fees that they are required to pay:

• Charleston - $3.00
• Fairmont - $2.00
• Huntington - $5.00
• Madison - $1.25
• Montgomery - $2.00
• Morgantown - $3.00
• Parkersburg - $2.50
• Weirton - $2.00
• Wheeling - $2.00

WorkForce West Virginia (WV), the state unemployment insurance (SUI) agency, has added the following information to their quarterly return:

• Standard Occupational Classification (SOC) code
• County of Work
• Occupational/Job Title (Job Title)

What are SOC Codes? Where do I find them?

SOC codes are 6-digit codes created by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) to classify occupations. You can find these codes on the BLS website > 2018 Standard Occupational Classification System. Use the most precise SOC code available for each employee.

Can Paychex get the SOC Codes for my employees?

No. SOC codes must be assigned by the employer. Paychex doesn’t have the information to assign SOC codes to your employees. Once you assign the codes to your employees, you must enter them in Paychex Flex^® or report them to Paychex so we can accurately file your SUI returns.

What is the deadline for reporting this information to Paychex?

We recommend that you report the information to us as soon as possible. For the information to be listed on the SUI return, you must enter the information by the last reporting date for the quarter.

Paychex can calculate the number of hours for your employees from our payroll records. However, you need to report your employees’ SOC codes so we can include them on the return. Otherwise, the SC DEW will not accept the return.

Here’s what you need to do:

1. Assign the SOC codes for your WV employees using the most precise code for each employee. SC has provided some excellent tools for determining SOC codes on their website at Social Occupational Classification (SOC) Codes.
2. Log in to Paychex Flex^® to update the SOC code.
3. Use the following help articles in Paychex Flex to report, SOC codes.

• Updating manually
• Importing a list

Alternatively, you can gather the SOC codes, and then schedule an appointment with your Paychex Service Representative to report it for each WV employee. Please schedule an appointment as soon as possible because it may take some time to add this information to our system.

Agency: Wisconsin Department of Revenue

ID: Wisconsin Department of Revenue > Online Services > Online Registration

The Wisconsin Department of Revenue requires all returns to be filed electronically. 

Out-of-business employers must file the annual withholding reconciliation (WT-7) and supporting wage and information within 30 days of the account cease date.

Wyoming does not have state withholding.