Where are the tax balances stored for KY and AL as mentioned in the 25D Legislative Update?
Summary:
Where are the tax balances stored for KY and AL as mentioned in the 25D Legislative Update?
Content (please ensure you mask any confidential information):
In the 25D Legislative Update, the following is mentioned:
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. We will start consuming this balance in tax filing processes beginning January 1, 2026. You need to assess any processes you have that may need to populate this taxable balance appropriately.