Action Required: Review WV/DE Bonus Payroll Withholding for Pre-tax 401(k)

This notice is intended for Customers using the SuitePeople U.S. Payroll and have employees with state income tax obligations in West Virginia or Delaware.

You are receiving this notification because your organization uses SuitePeople U.S. Payroll and has employees with state income tax obligations in West Virginia or Delaware.

What is Changing?

We identified an issue in SuitePeople U.S. Payroll that affects bonus payroll runs for employees with West Virginia and Delaware state tax withholding. In these bonus runs, pre-tax 401(k) deductions may not have reduced the state taxable wage base as expected. Instead, the 401(k) amounts were treated as post-tax for state withholding calculations.