Introduction of City and County Income Tax Taxable Balances

Summary:

Provide More information on the City and County Income Tax Taxable Balances that's effective 2026

Content (please ensure you mask any confidential information):

We have the 4th quarter statutory update that states:

Introduction of City and County Income Tax Taxable Balances

In the Q4 2024 US Payroll Legislative Announcement, you were asked to review any processes you have that may need to populate the new taxable balance for city and county income taxes. Please review the below guidance again and take action if needed. A 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.