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Introduction of City and County Income Tax Taxable Balances- 2025 Q4 Legislative patch

in Payroll and Global Payroll Interface (GPI) 1 comment

Summary:

2025 Q4 Legislative patch has a feature that says few states such as Kentucky and Alabama have city and/or county taxes that are subject to a taxable limit. We have introduced a taxable balance for city and county income tax jurisdictions. This taxable balance is being populated in payroll calculations and will cap to the taxable limit for the appliable jurisdictions for 2025 and beyond. We will start consuming this balance in tax filing processes beginning January 1, 2026

Can I please get the balance name which are getting introduced here ? I'm not able to find any such documentation.

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