U.S. 2023 Payroll Tax Update

This tax update applies to:

  • Microsoft Dynamics GP on Microsoft SQL Server

This article provides guidance for how to install the 2023 U.S. Payroll Tax Update for Microsoft Dynamics GP and describes changes.

This is the second tax update for 2023 and replaces all previous tax updates. It includes State tax table changes that take effect January 1, 2023. We recommend that you install this update as soon as you can for the year 2023.

This document assumes that you are familiar with the Microsoft Dynamics GP U.S. Payroll module.

Check out these blogs for detailed documentation on how you calculate payroll taxes in Microsoft Dynamics GP:

How to calculate Federal Tax with Dependent Claim Amount Field

Does Microsoft Dynamics GP calculate tax correctly?

Tips to install the U.S. Payroll Tax Update

Changes in January Round 2 update (Released: 1/24/2023)

2023 state or territorial tax changes

The following tax changes are included in this update:

  • Colorado
  • Illinois
  • Indiana
  • Iowa
  • Maryland
  • Michigan
  • North Carolina
  • North Dakota
  • Oregon
  • Rhode Island
  • Vermont
  • Arkansas - code changes

Withholding changes for Colorado

All filing status have the same fixed flat tax of 4.40% was 4.55%(2022)

The Personal Exemption amount is $9,000 for MAR The Personal Exemption amount is $4,500 For SINGLE

The following new filing status were added January 2022:

  • HOH1J - Head of Household 1 Job - Exemption amount $18,500
  • MAR1J - Married Filing Jointly 1 Job - Exemption amount $25,500
  • SIN1J - Single/Mar filing Single 1 Job - Exemption amount $11,500

In January 2022 the state of Colorado released a new form called DR-0004 this is optional for an employee to complete.

There are 2 other parts to this form that have many different exemption amounts, we cannot accommodate all of them in the tax tables. A new “OTHER” filing status was added (OTH1J) with Exemption increments of $500 that will accommodate all the "other" amounts on the form if an employee enters.

OTH1J - OTH, +1 Jobs or Child Cr Allow - Exemption amount of $500

As an example, lets say I fill out the form and choose an amount of 2500 – it does not match any of the above filing status so I would pick the OTHER status and put a 5 under Cards | Payroll | State Tax in the Number of Dependents field OR Additional Allowances. Which is 2500/500 = 5.

Another example, I put 5500 on the form. Again, that does not match the other filing status, so I choose Other and put 11.

Withholding changes for Illinois

The Dependent Exemptions is $2,625 formerly $2,425 The Flat tax rate remains at 4.95 and allowances at 1,000

Withholding changes for Indiana

The Flat tax is 3.15% previously 3.23%

Withholding changes for Iowa

New for 2023 Iowa withholding calculations, federal withholding is no longer subtracted from taxable wages.

The Standard Deduction Amount for Filing Status:

  • EXP1 is $13,850 previously $2,210
  • EXP2 is $27,700 previously $5,450

Withholding rates for taxpayers filing as EXP1 and EXP2 are as follows:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 4,800 0 4.40%
4,800 24,000 211.20 4.82% 4,800
24,000 50,000 1,136.64 5.70% 24,000
50,000 And over 2,618.64 6.00% 50,000

Withholding changes for Maryland

For each Filing Status of Maryland • Standard Deduction Minimum is $1,700 from $1,600 • Standard Deduction Maximum is $2,550 from $2,400 The Standard Deduction Percent remains at 15 percent.

For Filing Status of AAMAR (Anne Arundel MFJ/HOH).

Withholding rates for taxpayer:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,000 0 0% 0
5,000 50,000 0 7.50% 0
50,000 150,000 0 7.60% 0
150,000 175,000 11,400 7.85% 150,000
175,000 225,000 13,362.50 8.10% 175,000
225,000 300,000 17,412.50 8.35% 225,000
300,000 And over 23,675 8.60% 300,000

For Filing Status of ARNDEL (Anne Arundel SGL/DEP/MFS).

Withholding rates for taxpayer:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,000 0 0% 0
5,000 50,000 0 7.50% 0
50,000 100,000 0 7.60% 0
100,000 125,000 7,600 7.85% 100,000
125,000 150,000 9,562.50 8.10% 125,000
150,000 250,000 11,587.50 8.35% 150,000
250,000 And over 19,937.50 8.60% 250,000

For Filing Status of FRMAR (Frederick MFJ/HOH).

Withholding rates for taxpayer:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,000 0 0% 0
5,000 100,000 0 7.50% 0
100,000 150,000 0 7.75% 0
150,000 175,000 11,625 8.00% 150,000
175,000 225,000 13,625 8.25% 175,000
225,000 300,000 17,750 8.50% 225,000
300,000 And over 24,125 8.75% 300,000

For Filing Status of FREDRK (Frederick SGL/DEP/MFS).

Withholding rates for taxpayer:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,000 0 0% 0
5,000 50,000 0 7.50% 0
50,000 100,000 0 7.75% 0
100,000 125,000 7,750 8.00% 100,000
125,000 150,000 9,750.00 8.25% 125,000
150,000 250,000 11,812.50 8.50% 150,000
250,000 And over 20,312.50 8.75% 250,000

Withholding changes for Michigan

The Personal Exemption Amount is $5,400 from $5,000 The Tax Rate remains at 4.25%

Withholding changes for North Carolina

Standard Deduction for HOH remains at $19,125 Standard Deduction for MAR and SINGLE remains at $12,750

Tax rate for all filing status is 4.85%

Withholding changes for North Dakota

Note

Per the state of North Dakota, there is no HOH filing status with exemptions. If an employee on the W4 chooses Filing status of HOH and does not mark step 2, you still choose HOH as the filing status in Dynamics GP.

The state relies on the Federal form W-4 to calculate the amount to withhold. Per the state, Step 3 for Dependent Claim amount is not used for ND state tax withholding.

Withholding rates for taxpayers filing as MAR and MARHR :

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 13,850 0 0% 0
13,850 51,225 0 1.10% 13,850
51,225 104,125 411.13 2.04% 51,225
104,125 151,400 1,490.290 2.27% 104,125
151,400 259,525 2,5631.43 2.64% 151,400
259,525 And Over 5,417.93 2.90% 259,525

Withholding rates for taxpayers filing as SINGLE and SINGHR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 6,925 0 0% 0
6,925 51,650 0 1.10% 6,925
51,650 115,250 491.98 2.04% 51,650
115,250 232,900 1,789.42 2.27% 115,250
232,900 498,275 4,460.07 2.64% 232,900
498,275 And Over 11,456.97 2.90% 498,275

Withholding rates for taxpayers filing as HOHHR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 10,400 0 0% 0
10,400 70,350 0 1.10% 10,400
70,350 165,150 659.45 2.04% 70,350
165,150 260,950 2,593.37 2.27% 165,150
260,950 501,750 4,768.035 2.64% 260,950
501,750 And Over 11,125.159 2.90% 501,750

Withholding changes for Oregon

The Standard Deduction Amount is $5,210 for MS3 and S3 Filing Status.

The Standard Deduction Amount is $2,605 for S2 Filing Status.

The Personal Exemption amount is $236.00 for all Filing Status.

New Filing status for 2020 NOWH (No Withholding Provided) Flat tax rate of 8% (remains for 2023 year)

HB2119 requires employers to withhold income tax at a rate of 8 percent of employee wages if they employee has not provided a withholding statement or exemption certificate.
Continue withholding at the 8 percent rate until the employee submits a withholding statement and exemption certificate.

Special Tax Type rates for MS3 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 49,999 7,800 0% 0
49,999 249,999 7,800 0% 0
249,999 259,999 6,250 0% 0
259,999 269,999 4,700 0% 0
269,999 279,999 3,100 0% 0
279,999 289,999 1,550 0% 0
289,999 And over 0 0% 0

Special Tax Type rates for S2 and S3 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 49,999 7,800 0% 0
49,999 124,999 7,800 0% 0
124,999 129,999 6,250 0% 0
129,999 134,999 4,700 0% 0
134,999 139,999 3,100 0% 0
139,999 144,999 1,550 0% 0
144,999 And over 0 0% 0

Tax Type rates for MS3 and S3 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 36,990 0 0% 0
36,990 250,000 1,215 8.75% 20,400
250,000 And over 21,305 9.9% 250,000

Tax Type rates for S2 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 39,595 0 0% 0
39,595 125,000 608 8.75% 10,200
125,000 And Over 10,653 9.9% 125,000

Low Income Type rates for MS3 and S3 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 8,100 236 4.75% 0
8,100 20,400 621 6.75% 8,100
20,400 50,000 1,451 8.75% 20,400

Low Income Type rates for S2 Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 4,050 236 4.75% 0
4,050 10,200 428 6.75% 4,050
10,200 50,000 844 8.75% 10,200

Withholding changes for Rhode Island

For all Filing Status the Personal Exemption ($1,000) wage limit increased to $260,550

Withholding rates for taxpayers filing as MAR and SINGLE

If Over    But Not Over    Tax Amount    Tax Rate    On Excess Over   
0 73,450 0 3.75% 0
73,450 166,950 2,754.38 4.75% 73,450
166,950 And Over 7,195.63 5.99% 166,950

Withholding changes for Vermont

The Personal Exemption amount is $4,850

Withholding rates for taxpayers filing as MAR

If Over    But Not Over    Tax Amount    Tax Rate    On Excess Over   
0 10,538 0 0% 0
10,538 86,388 0 3.35% 10,538
86,388 193,938 2,540.98 6.60% 86,388
193,938 289,988 9,639.28 7.60% 193,938
289,988 And Over 16,939.08 8.75% 289,988

Withholding rates for taxpayers filing as SINGLE

If Over    But Not Over    Tax Amount    Tax Rate    On Excess Over   
0 3,500 0 0% 0
3,500 48,900 0 3.35% 3,500
48,900 113,550 1,520.90 6.60% 48,900
113,550 233,050 5,787.80 7.60% 113,550
233,050 And Over 14,869.80 8.75% 233,050

Withholding changes for Arkansas

Note

If you have employees set up to withhold Arkansas state tax, then, when you apply this update, you must also apply the January 2023 Hotfix (code) for the Arkansas state taxes to be correct for the year 2023. This change is for the Midrange Income look up part of the tax calculation.

Standard Deduction Amount is $2,270 from $2,200 Personal Exemption remains at $29.00

Tax Type rates for Filing Status NA

If Over    But Not Over    Tax Amount    Tax Rate    On Excess Over   
0 5,099 0 0.0% 0
5,099 10,299 -101.98 2.0% 0
10,299 14,699 -204.97 3.0% 0
14,699 24,299 -263.77 3.4% 0
24,299 87,000 -628.25 4.9% 0
87,000 87,100 -627.20 4.9% 0
87,100 87,200 -617.20 4.9% 0
87,200 87,300 -607.20 4.9% 0
87,300 87,400 -597.20 4.9% 0
87,400 87,600 -587.20 4.9% 0
87,600 87,700 -577.20 4.9% 0
87,700 87,800 -567.20 4.9% 0
87,800 87,900 -557.20 4.9% 0
87,900 88,000 -547.20 4.9% 0
88,000 88,100 -537.20 4.9% 0
88,100 88,200 -527.20 4.9% 0
88,200 88,300 -517.20 4.9% 0
88,300 88,400 -507.20 4.9% 0
88,400 88,500 -497.20 4.9% 0
88,500 88,600 -487.20 4.9% 0
88,600 88,700 -477.20 4.9% 0
88,700 88,800 -467.20 4.9% 0
88,800 88,900 -457.20 4.9% 0
88,900 89,000 -447.20 4.9% 0
89,000 89,100 -437.20 4.9% 0
89,100 89,200 -427.20 4.9% 0
89,200 89,300 -417.20 4.9% 0
89,300 89,400 -407.20 4.9% 0
89,400 89,500 -397.20 4.9% 0
89,500 89,600 -387.20 4.9% 0
89,600 89,700 -377.20 4.9% 0
89,700 89,800 -367.20 4.9% 0
89,800 89,900 -357.20 4.9% 0
89,900 90,000 -347.20 4.9% 0
90,000 90,100 -337.20 4.9% 0
90,100 90,200 -327.20 4.9% 0
90,200 90,300 -317.20 4.9% 0
90,300 90,400 -307.20 4.9% 0
90,400 90,500 -297.20 4.9% 0
90,500 90,600 -287.20 4.9% 0
90,600 90,700 -277.20 4.9% 0
90,700 90,800 -267.20 4.9% 0
90,800 90,900 -257.20 4.9% 0
90,900 91,100 -247.20 4.9% 0
91,100 91,200 -237.20 4.9% 0
91,200 91,300 -227.20 4.9% 0
91,300 91,400 -217.20 4.9% 0
91,400 91,500 -207.20 4.9% 0
91,500 91,600 -197.20 4.9% 0
91,600 91,700 -187.20 4.9% 0
91,700 91,800 -177.20 4.9% 0
91,800 And over -167.20 4.9% 0

Tax Type Special for Filing Status NA added

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 91,801 0 0% 50,000

Changes in January Round 1 update (Released: 12/21/2022)

  • FICA Social Security Limit $160,200
  • Federal tax tables added 12/30/2021
  • Arizona
  • California
  • Kentucky
  • Maine
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • New York
  • South Carolina
  • Yonkers

2023 Federal tax changes

The maximum taxable earnings for Social Security increase in 2023 to $160,200 from $147,000.

Federal tax tables released 12/18/2022

The Personal Exemption is $4,300 for SINGLE, MAR, HOH, NRA

Withholding rates for taxpayers filing as NRA

Note

For non-resident aliens, if the employee filled out a W-4 after 01/01/2020, the filing status Non Resident Alien HR (NRAHR) must always be used.

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 14,800 0 0% 0
14,800 25,800 0 10% 14,800
25,800 59,525 1,100.00 12% 25,800
59,525 110,175 5,147.00 22% 59,525
110,175 196,900 16,290.00 24% 110,175
196,900 246,050 37,104.00 32% 196,900
246,050 592,925 52,832.00 35% 246,050
592,925 And Over 174,238.25 37% 592,925

Withholding rates for taxpayers filing as NRAHR

If Over But Not Over Tax Amount Tax Rate On Excess Over
20,775 0 0% 0
20,775 26,275 0 10% 20,775
26,275 43,138 550.00 12% 26,275
43,138 68,463 2,573.50 22% 43,138
68,463 111,825 8,145.00 24% 68,463
111,825 136,400 18,552.00 32% 111,825
136,400 309,838 26,416.00 35% 136,400
309,838 And Over 87,119.13 37% 309,838

Withholding rates for taxpayers filing as MAR

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 14,800 0 0% 0
14,800 36,800 0 10% 14,800
36,800 104,250 2,200.00 12% 36,800
104,250 205,550 10,294.00 22% 104,250
205,550 379,000 32,580.00 24% 205,550
379,000 477,300 74,208.00 32% 379,000
477,300 708,550 105,664.00 35% 477,300
708,550 And Over 186,601.50 37% 708,550

Withholding rates for taxpayers filing as MARHR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 13,850 0 0% 0
13,850 24,850 0 10% 13,850
24,850 58,575 1,100.00 12% 24,850
58,575 109,225 5,147.00 22% 58,575
109,225 195,950 16,290.00 24% 109,225
195,950 245,100 37,104.00 32% 195,950
245,100 360,725 52,832.00 35% 245,100
360,725 And Over 93,300.75 37% 360,725

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,250 0 0% 0
5,250 16,250 0 10% 5,250
16,250 49,975 1,100.00 12% 16,250
49,975 100,625 5,147.00 22% 49,975
100,625 187,350 16,290.00 24% 100,625
187,350 236,500 37,104.00 32% 187,350
236,500 583,375 52,832.00 35% 236,500
583,375 And Over 174,238.25 37% 583,375

Withholding rates for taxpayers filing as SGLHHR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 6,925 0 0% 0
6,925 12,425 0 10% 6,925
12,425 29,288 550.00 12% 12,425
29,288 54,613 2,573.50 22% 29,288
54,613 97,975 8,145.00 24% 54,613
97,975 122,550 18,552.00 32% 97,975
122,550 295,988 26,416.00 35% 122,550
295,988 And Over 87,119.13 37% 295,988

Withholding rates for taxpayers filing as HOH:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 12,200 0 0% 0
12,200 27,900 0 10% 12,200
27,900 72,050 1,570.00 12% 27,900
72,050 107,550 6,868.00 22% 72,050
107,550 194,300 14,678.00 24% 107,550
194,300 243,450 35,498.00 32% 194,300
243,450 590,300 51,226.00 35% 243,450
590,300 And Over 172,623.50 37% 590,300

Withholding rates for taxpayers filing as HOHHR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 10,400 0 0% 0
10,400 18,250 0 10% 10,400
18,250 40,325 785.00 12% 18,250
40,325 58,075 3,434.00 22% 40,325
58,075 101,450 7,339.00 24% 58,075
101,450 126,025 17,749.00 32% 101,450
126,025 299,450 25,613.00 35% 126,025
299,450 And Over 86,311.75 37% 299,450

2023 state or territorial tax changes

The following tax changes are included in this update:

Withholding changes for Arizona

Decrease in flat tax rates for all filing status.

  • FS01A - .5% Flat Tax Rate from .8%
  • FS02 - 1.0% Flat Tax Rate from 1.3%
  • FS03 - 1.5% Flat Tax Rate from 1.8%
  • FS04 - 2.0% Flat Tax Rate from 2.7%
  • FS05 - 2.5% Flat Tax Rate from 3.6%
  • FS06 - 3.0% Flat Tax Rate from 4.2%
  • FS07 - 3.5% Flat Tax Rate from 5.1%

Withholding changes for California

For Filing Status of HOH and MAR2:

  • Personal Exemption is $154.00 from $141.90
  • Standard Deduction is $10,404 from $9,606
  • Low Income Limit is $34,503 from $31,831

For Filing Status of MAR1 and SINGLE:

  • Personal Exemption is $154.00 from $141.90
  • Standard Deduction is $5,202 from $4,803
  • Low Income Limit is $17,252 from $15,916

Withholding rates for taxpayers filing as HOH:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 20,212 0 1.1% 0
20,212 47,887 222.33 2.2% 20,212
47,887 61,730 831.18 4.4% 47,887
61,730 76,397 1,440.27 6.6% 61,730
76,397 90,240 2,408.29 8.8% 76,397
90,240 460,547 3,626.47 10.23% 90,240
460,547 552,658 41,508.88 11.33% 460,547
552,658 921,095 51,945.06 12.43% 552,658
921,095 1,000,000 97,741.78 13.53% 921,095
1,000,000 And Over 108,417.63 14.63% 1,000,000

Withholding rates for taxpayers filing as MAR1 and MAR2

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 20,198 0 1.1% 0
20,198 47,884 222.18 2.2% 20,198
47,884 75,576 831.27 4.4% 47,884
75,576 104,910 2,049.72 6.6% 75,576
104,910 132,590 3,985.76 8.8% 104,910
132,590 677,278 6,421.60 10.23% 132,590
677,278 812,728 62,143.18 11.33% 677,278
812,728 1,000,000 77,489.67 12.43% 812,728
1,000,000 1,354,550 100,767.58 13.53% 1,000,000
1,354,550 And Over 148,738.20 14.63% 1,354,550

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 10,099 0 1.1% 0
10,099 23,942 111.09 2.2% 10,099
23,942 37,788 415.64 4.4% 23,942
37,788 52,455 1,024.86 6.6% 37,788
52,455 66,295 1,992.88 8.8% 52,455
66,295 338,639 3,210.80 10.23% 66,295
338,639 406,364 31,071.59 11.33% 338,639
406,364 677,275 38,744.83 12.43% 406,364
677,275 1,000,000 72,419.07 13.53% 677,275
1,000,000 And Over 116,083.76 14.63% 1,000,000

Withholding changes for Kentucky

The Standard Deduction Amount is $2,980 from $2,770 The Tax Rate decreases to 4.5% formerly 5%

Withholding changes for Maine

  • Personal Exemption is $4,700 was $4,450

Withholding rates for taxpayers filing as SINGLE, Tax table type

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 24,500 0 5.8% 0
24,500 58,050 1,421 6.75% 24,500
58,050 And over 3,686 7.15% 58,050

Special table type

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 91,500 0 0 11,000
91,500 166,500 75,000 0 0

Withholding rates for taxpayers filing as MAR, Tax table type

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 49,050 5.80% 0
49,050 116,100 2,845 6.75% 49,050
116,100 And Over 7,371 7.15% 116,100

Special table type

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 183,050 0 0 24,850
183,050 333,050 150,000 0 0

Withholding changes for Minnesota

The Personal Exemption amount is $4,800 previously $4,450 for all Filing Status.

Withholding rates for taxpayers filing as MAR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 13,250 0 0% 0
13,250 57,200 0 5.35 13,250
57,200 187,860 2,351.33 6.80% 57,200
187,860 318,220 11,236.21 7.85% 187,860
318,220 And Over 21,469.47 9.85% 318,220

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 4,225 0 0% 0
4,225 34,295 0 5.35% 4,225
34,295 102,985 1,608.75 6.80% 34,295
102,985 187,565 6,279.67 7.85% 102,985
187,565 And Over 12,919.20 9.85% 187,565

Withholding changes for Mississippi

  • Dependent Exemption: 1,500 For All Filing Status

  • Standard Deduction: 4,600 for MAR1

  • Personal Exemption: 12,000 for MAR1

  • Standard Deduction: 2,300 for MAR2

  • Personal Exemption: 6,000 for MAR2

  • Standard Deduction: 3,400 for HOH

  • Personal Exemption: 9,500 for HOH

  • Standard Deduction: 2,300 for SINGLE

  • Personal Exemption: 6,000 for SINGLE

Withholding rates for all taxpayers filing status

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 5,000 0 0% 0
5,000 10,000 0 0% 0
10,000 And Over 0 5% 10,000

Withholding changes for Missouri

The Standard Deduction is $20,800 prior $19,400 for filing status HOH The Standard Deduction is $27,700 prior $25,900 for filing status MAR1 The Standard Deduction is $13,850 prior $12,950 for filing status MAR2 and SINGLE

Withholding rates for all filing status

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 1,207 0 0% 0
1,207 2,414 0.00 2.0% 1,207
2,414 3,621 24.00 2.5% 2,414
3,621 4,828 54.00 3.0% 3,621
4,828 6,035 90.00 3.5% 4,828
6,035 7,242 132.00 4.0% 6,035
7,242 8,449 180.00 4.5% 7,242
8,449 And over 234.00 4.95% 8,449

Withholding changes for Montana

The Personal Exemption amount is $2,070 formerly $1,900

Tax Type rates for SINGLE and MAR Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 7,630 0 1.80% 0
7,630 16,350 137.00 4.40% 7,630
16,350 130,790 521.00 6.0% 16,350
130,790 And Over 7,387.00 6.60% 130,790

Withholding changes for Nebraska

The Personal Exemption amount is $2,140 formerly $2,080 for Filing Status MAR and SINGLE.

Withholding rates for taxpayers filing as MAR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 7,530 0 0 0
7,530 11,610 0 2.26% 7,530
11,610 28,910 92.21 3.22% 11,610
28,910 44,980 649.27 4.91% 28,910
44,980 55,810 1,438.31 6.20% 44,980
55,810 74,010 2,109.77 6.39% 55,810
74,010 And over 3,272.75 6.75% 74,010

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 3,060 0 0 0
3,060 5,990 0 2.26% 3,060
5,990 19,470 66.22 3.22% 5,990
19,470 28,210 500.28 4.91% 19,470
28,210 35,820 929.41 6.20% 28,210
35,820 67,270 1,401.23 6.39% 35,820
67,270 And over 3,410.89 6.75% 67,270

Withholding changes for New Mexico

Withholding rates for taxpayers filing as MAR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 13,850 0 0% 0
13,850 21,850 0 1.70% 13,850
21,850 29,850 136.00 3.2% 21,850
29,850 37,850 392.00 4.7% 29,850
37,850 53,850 768.00 4.9% 37,850
53,850 77,850 1,552.00 4.9% 53,850
77,850 113,850 2,728.00 4.9% 77,850
113,850 213,850 4,492.00 4.9% 113,850
213,850 328,850 9,392.00 4.9% 213,850
328,850 And Over 15,027.00 5.9% 328,850

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 6,925 0 0% 0
6,925 12,425 0 1.7% 6,925
12,425 17,925 93.50 3.2% 12,425
17,925 22,925 269.50 4.7% 17,925
22,925 32,925 504.50 4.9% 22,925
32,925 48,925 994.50 4.9% 32,925
48,925 71,925 1,778.50 4.9% 48,925
71,925 131,925 2,905.50 4.9% 71,925
131,925 216,925 5,845.50 4.9% 131,925
216,925 And Over 10,010.50 5.9% 216,925

Withholding rates for taxpayers filing as HOH:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 10,400 0 0% 0
10,400 18,400 0 1.7% 10,400
18,400 26,400 136.00 3.2% 18,400
26,400 34,400 392.00 4.7% 26,400
34,400 50,400 768.00 4.9% 34,400
50,400 74,400 1,552.00 4.9% 50,400
74,400 110,400 2,728.00 4.9% 74,400
110,400 210,400 4,492.00 4.9% 110,400
210,400 325,400 9,392.00 4.9% 210,400
325,400 And Over 15,027.00 5.9% 325,400

Withholding changes for New York and New York-Yonkers

Withholding rates for taxpayers filing as MAR:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 8,500 0 .0400 0
8,500 11,700 340.00 .0450 8,500
11,700 13,900 484.00 .0525 11,700
13,900 80,650 600.00 .0555 13,900
80,650 96,800 4,271.00 .0600 80,650
96,800 107,650 5,240.00 .0667 96,800
107,650 157,650 5,963.00 .0717 107,650
157,650 211,550 9,546.00 .0811 157,650
211,550 323,200 13,919.00 .0650 211,550
323,200 373,200 21,177.00 .1284 323,200
373,200 1,077,550 27,599.00 .0735 373,200
1,077,550 2,155,350 29,368.00 .0765 1,077,550
2,155,350 5,000,000 0 .1045 0
5,000,000 25,000,000 0 .1110 0
25,000,000 And over 0 .1170 0

Withholding rates for taxpayers filing as SINGLE:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 8,500 0 .0400 0
8,500 11,700 340.00 .0450 8,500
11,700 13,900 484.00 .0525 11,700
13,900 80,650 600.00 .0550 13,900
80,650 96,800 4,271.00 .0600 80,650
96,800 107,650 5,240.00 .0714 96,800
107,650 157,650 6,014.00 .0764 107,650
157,650 215,400 9,832.00 .0650 157,650
215,400 265,400 13,586.00 .1101 215,400
265,400 1,077,550 19,092.00 .0735 265,400
1,077,550 5,000,000 0 .1045 0
5,000,000 25,000,000 0 .1110 0
25,000,000 And over 0 .1170 0

Withholding changes for South Carolina

The Personal Exemption is $4,310 for Filing Status ONE. The Standard Deduction Maximum is $6,475 for ONE Filing Status.

Tax Type rates for all Filing Status:

If Over But Not Over Tax Amount Tax Rate On Excess Over
0 3,330 0 0.0% 0
3,330 16,680 -99.00 3.0% 0
16,680 And over -683.70 6.5% 0

Resources to assist you

If you have questions about U.S. Payroll tax updates and your Microsoft Partner isn't available, there are several resources, in addition to this document, to assist in answering your questions.

U.S. Payroll Tax Updates

Take a look at this location to find out the tax changes included in each update and to download the update. All instructions for downloading and installing the tax updates also are provided here.

eSupport

For support requests that can be handled with email, go to https://support.microsoft.com/supportforbusiness. On average, the response time is nearly twice as fast as telephone support.

Discussion

On the Dynamics GP community site, you can start a tax update discussion with other members of the Microsoft customer community. This database provides you with the opportunity to exchange information with other customers, which is perfect for providing tips and answers to questions about tax updates.

Preparing for installation

Use the instructions in this section to prepare for the U.S. Payroll Tax Update. For detailed information about the changes in the current tax update round, see Changes in this update.

Are you using a supported version?

To identify the version, you're using, start Microsoft Dynamics GP. Choose Help>> About Microsoft Dynamics GP. The information window displays the version number in the lower right corner.

This U.S. Payroll Tax Update is supported for Microsoft Dynamics GP on Microsoft SQL Server.

If you're not using one of the supported versions, you must upgrade to a supported version before installing this tax update.

Have you obtained the update files?

If your computer is connected to the Internet, the Payroll Update Utility (PUE) automatically can download the tax table update file (TX.cab) from the Internet.

If your computer isn't connected to the Internet, you can obtain the file from Dynamics GP Downloads or your Microsoft Partner and copy it to your computer before running what's known as a "manual" installation.

Tax updates are distributed in the form of .CAB files. Copy the .CAB file to a folder that you can readily access, such as the folder that contains Dynamics.exe. Copying the .CAB file to your computer does not complete the installation. Refer to the following section for instructions on how to install the tax update.

Installing the tax update

The tax update installation can be run from any workstation. The update installs payroll tax table data on the server computer where your existing Microsoft Dynamics GP application data is located. You need to install the tax table update only once.

If you have issues installing the update, review the article on Tips to install the U.S. Payroll Tax Update.

Before you begin, ask all Microsoft Dynamics GP users to exit the application until the update is complete. Exit all other applications, turn off the screen saver, and back up important data (including Forms.dic, Reports.dic, and Dynamics.vba if they exist) before you proceed with the installation.

  1. Log onto Microsoft Dynamics GP with the system administrator rights, (user SA) and open the Payroll Tax Update window. (Microsoft Dynamics GP menu >> Maintenance >> U.S. Payroll Updates >> Check for Tax Updates)

  2. Select an update method, and then choose Next.

    A screenshot

    • The Automatic option downloads the current tax table update from the Internet to the default location. An Internet connection is required.
    • The Manual option processes the tax table update from a location you choose. You might choose Manual if you need to update a computer that isn't connected to the Internet. To use this method, you should already have obtained the tax table update file, TX.cab, and copied it to a location your computer can readily access.
  3. If you selected Automatic, enter your 10-digit authorized telephone number. Choose Log in to start the download.

    If you selected Manual, specify the location where the tax table update file is located.

  4. Choose Process to start the update.

  5. Verify that the latest Payroll tax table update has been installed. Choose Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Payroll Tax. The Last Tax Update value should be 1/24/2023.

What's next

If you upgrade to another version of Microsoft Dynamics GP, you must install the most recent service pack (if any), as well as the most recent tax table updates for that release, to ensure you have the latest tax information. Newer releases of Microsoft Dynamics GP do not include current payroll tax information.