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January 2025 Tax Update

2025 January Tax Update Release Notes

Released: 2025-1-10

important

  • You must be using ReadyPay and ReadyPay Services version 3.66.0.10 (or higher) to install this tax update.

  • High Impact tickets in this update:

    • Deduction type annual limits for retirement plans have been updated and added. See Dev. Ticket RPO-3036 for details.
    • Labor distribution changes in ReadyPay version 3.66.0.10 have been reverted. You must use the RecalcLabor utility to fix the labor distribution and job costing information in payrolls that were processed using version 3.66.0.10 and before this update was installed.

Installation Instructions​

  1. Download the 2025JanTaxUpdate.zip file from the bottom of this article.

  2. Unzip the 2025JanTaxUpdate.zip file, which contains six tax form PDF files, and two .dll files.

  3. Copy the six tax form PDF files to your ReadyPay shared TaxForms folder, overwriting any existing files.

  4. Copy the two .dll files to every computer in your service bureau environment with ReadyPay installed. The default file location is C:\Program Files (x86)\Millennium 3\

  5. Stop all but one instance of the Ready Pay Process Server service on your classic Process Servers in your service bureau environment.

  6. SyncUP to Taslar to receive tax updates.

  7. Restart your ReadyPay process server(s).

  8. Copy the six tax form PDF files to your ReadyPay Online environment's shared TaxForms folder, overwriting any existing files.

  9. Copy the two .dll files to every computer in your ReadyPay Online environment that has ReadyPay installed. The default file location is C:\Program Files (x86)\Millennium 3\

  10. SyncUP RPO to ReadyPay to push the tax updates to RPO.

  11. Restart your RPO process server(s).

  12. Recycle your RPO web server's AppPool.

Release Notes​

TicketRelease Notes
RPO-3036Deduction types have been updated again for 2025 IRS Limits, including those for Secure Act 2.0. New deduction types are required because the additional catch-up at ages 60-63 is optional. The changes are as follows:

- Removed the additional catchup for ages 60-63 from 401k, 403b, 408k, 457b, Roth 401k, Roth 403b, Roth 457, and 457b ER Match.

- Added deduction types 401k HL, 403b HL, 408k HL, 457b HL, Roth 401k HL, Roth 403b HL, Roth 457 HL, and 457b ER MatchHL. The "HL" indicates the higher limit catch-up for ages 60-63 applies to these dedTypes.
RPO-3032Federal 941 paper return has been updated to fix a penny rounding issue with MED-HI.
RPO-3040Federal Form 1095-C (legal size) has been fixed.
RPO-3041Federal Form W-2 has been updated to report uncollected social security and medicare amounts correctly (Box 12 codes A and B).
RPO-3027IL withholding tables have been updated for 2025.
RPO-3035KY Annual Transmittal (paper return) totals have been fixed.
RPO-3020KY SUI wage base has been updated to 11,700.00, effective 1/1/2025.
RPO-3014LA withholding tables have been updated for 2025.

N.B.:

Louisiana has a new filing status of 0 (zero), which indicates that the employee does not want to claim any exemptions or dependents.
RPO-3017ME annual reconciliation form has been updated for 2024.
RPO-3031ME W2 eFile has been updated to the newest specs.
RPO-3022ND withholding tables have been updated for 2025.
RPO-2993OH 101 SD long forms Q and M (paper version) has been updated. The paper return is marked "Record Copy Only", as the state requires eFiling.
RPO-3026OR TriMet (OR-TRI1) rate has been updated to 0.008237, effective 1/1/2025.
RPO-3025OR withholding tables have been updated for 2025.
RPO-3028PA local tax update for Lancaster. The rate for tax codes PA-360399R, PA-360999R, and PA-361001R have been updated to 0.0160, effective 01/01/2025.
RPO-3021PA local tax updates for Berkheimer Associates.

Rates have been updated on the following tax codes. All are effective 1/1/2025.

PA-370501N rate is 0.01148

PA-390501R rate is 0.01175

PA-SPRV rate is 52.00/year

PA-SUMD rate is 47.00/year

PA-SUMK rate is 52.00/year

Collector for tax code PA-VER4 is now:

Berkheimer Associates

P.O. Box 25156

Lehigh, PA 18002-5156
RPO-3015PA local tax updates for Keystone Collections Group.

Rates have been updated on the following tax codes. All are effective 1/1/2025.

PA-150106N rate is 0.0075

PA-150106R rate is 0.0075

PA-150305R rate is 0.0125

PA-150402R rate is 0.008

PA-150702R rate is 0.011

PA-150801R rate is 0.0135

PA-150802R rate is 0.011

PA-150803R rate is 0.0135

PA-150901N rate is 0.005

PA-150901R rate is 0.005

PA-230902N rate is 0.01

PA-230902R rate is 0.01

PA-231004N rate is 0.01

PA-231004R rate is 0.01

PA-231501N rate is 0.01

PA-231501R rate is 0.01

PA-480302N rate is 0.01

PA-490403R rate is 0.01

PA-631402N rate is 0.01

PA-631402R rate is 0.01

PA-SHAI rate is 52.00/year

PA-WHIN rate is 52.00/year

The following tax codes have had their address updated.

PA-120101N,PA-120102N,PA-120103N,PA-120104N,PA-120105N,PA-120106N,PA-120107N,PA-410101N,PA-410102N,PA-410103N,PA-410104N,PA-410105N,PA-410106N,PA-410107N,PA-410108N,PA-410109N,PA-410201N,PA-410202N,PA-410203N,PA-410204N,PA-410205N,PA-410206N,PA-410207N,PA-410208N,PA-410209N,PA-410210N,PA-410211N,PA-410212N,PA-410213N,PA-410214N,PA-410215N,PA-410216N,PA-410301N,PA-410401N,PA-410402N,PA-410403N,PA-410404N,PA-410501N,PA-410502N,PA-410503N,PA-410504N,PA-410505N,PA-410506N,PA-410507N,PA-410601N,PA-410602N,PA-410603N,PA-410701N,PA-410702N,PA-410703N,PA-410704N,PA-410801N,PA-410802N,PA-410803N,PA-410804N,PA-410805N,PA-410806N

The collector address is now:

Keystone Collections Group

P.O. Box 559

Irwin, PA 15642
RPO-3038SC 1099 eFile has been updated to the newest specifications.
RPO-3018SC W2 paper transmittal return has been updated for 2024.
RPO-3023VA minimum wage has been updated to 12.41, effective 1/1/2025.
RPO-3024VI SUI wage base has been updated to 31,100.00, effective 1/1/2025.
RPO-3019VT withholding tables have been updated for 2025.

Attachments​